The remuneration for new term deposits from individuals fell for the 16th consecutive month in May to 1.49%, reaching its lowest level since May 2023, announced the Bank of Portugal (BdP).
The banking supervisor’s data indicates that the average interest rate on new term deposits from individuals decreased by 0.15 percentage points in May compared to April, contrasting with 2.72% in the same month the previous year.
This represents the lowest remuneration for term deposits by Portuguese banks since May 2023 (1.39%), after reaching a 12-year high of 3.08% in December of the same year.
Since then, this rate has consecutively declined.
At the end of May, the amount of new term deposits from individuals reached 13,093 million euros, 123 million euros more than in April and 23.4% above the year-over-year value.
The average interest rate for new deposits with a term up to one year fell by 0.15 percentage points between April and May, to 1.50%. Despite the reduction, this “remained the term class with the highest average remuneration and accounted for 95% of new deposits in May”.
In the European context, the average also recorded a decline of 0.11 percentage points in May, settling at 1.87%.
Portugal dropped one position among the euro area countries, remaining in fourth place among the countries with the lowest average interest rate.
For companies, the average remuneration for term deposits went from 2.01% in April to 1.84% in May, with new deposits totaling 9,101 million euros (747 million euros less sequentially and 20.1% more year over year).
Following a period of stimulus in deposit remunerations due to the increase in key interest rates, the associated interest rate has returned to a decline.
