The banking supervisor reported a decrease in the average interest rate for new time deposits by individuals in July, down 0.04 percentage points from June, compared to 2.63% in the same month the previous year.
This marks the lowest interest rate for time deposits offered by Portuguese banks since May 2023 (1.39%), following a 12-year high of 3.08% reached in December of the same year.
Since then, this rate has been declining consecutively.
By the end of July, the total amount of new personal time deposit operations increased by 1,516 million euros, reaching 12,164 million euros.
The average interest rate for new deposits with a term of up to one year fell by 0.04 percentage points to 1.39%, representing 95% of new deposits in July.
Across the European spectrum, the average also saw a reduction, declining by 0.04 percentage points in July to 1.77%.
Portugal rose one position among euro area countries, now ranking as the country with the fifth lowest rate.
For corporate clients, the average remuneration for time deposits decreased from 1.71% in June to 1.66% in July, with new deposits totaling 10,259 million euros (an increase of 1,866 million euros month-over-month).
After a period of incentive in deposit remunerations, driven by the increase in base interest rates, the associated interest rate dropped again.
