Bank of Cyprus launches new deposit scheme — up to 3 per cent interest rate offered

The Bank of Cyprus on Thursday announced the launch of two new deposit products, known as “Step-Up,” designed to offer clients the opportunity to earn increased interest rates over an 18-month period.

These products are targeted at clients with deposits ranging from €20,000 to €500,000.

According to the bank, these clients can now benefit from more advantageous interest rates compared to other deposit products offered by the bank.

The “Step-Up” deposit products cater to both individuals and legal entities. The first offer, lasting 18 months, is available for deposits ranging from €20,000 to €100,000, offering interest rates of up to 2.60 per cent. The second proposal is for deposits from €100,000 to €500,000, providing interest rates of up to 3 per cent.

The Bank of Cyprus specified that the interest rate for the 18-month “Step-Up” term increases gradually every six months, with interest paid automatically into an account specified by the client.

The bank further noted that the average annual interest rate for the 18-month “Step-Up” deposit is 1.40 per cent for deposits below €100,000 and 1.75 per cent for deposits exceeding €100,000.

Interest rates are adjusted every six months based on the deposit amount. The bank explained that for deposits up to six months and under €100,000, the interest rate is 0.50 per cent, while for deposits between six and twelve months, the interest rate is 1.10 per cent.

In the same monetary range, for deposits held for twelve to eighteen months, the interest rate reaches 2.60 per cent.

For deposits ranging from €100,000 to €500,000, interest rates for up to six months are set at 0.75 per cent, while for deposits held between six and twelve months, the interest rate is 1.50 per cent. Deposits kept for twelve to eighteen months receive an interest rate of 3.00 per cent.

The bank also mentions there are charges associated with partial or full withdrawal of the deposit amount before the maturity date.

Finally, the bank noted that all deposits with the Bank of Cyprus are protected by the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme (DGS), with a maximum protection limit of €100,000 per depositor per credit institution.