Cyprus deposit rates trail eurozone as lending costs remain lower

Cyprus banks continued to offer lower interest rates on deposits than their eurozone counterparts in September 2026, while charging less for housing loans and most business lending, according to detailed figures published by the Central Bank of Cyprus (CBC) on Wednesday.

The data, which cover individual banking institutions, show that the average interest rate on household deposits with maturities of up to one year stood at 1.62 per cent in Cyprus, compared with 2.33 per cent across the euro area.

The difference was similarly pronounced for businesses, with the average rate offered on new term deposits by non-financial corporations reaching 1.70 per cent in Cyprus, against 2.46 per cent in the euro area.

Among banks offering household term deposits of up to one year, Ancoria Bank recorded the highest rate at 1.88 per cent, followed by the National Bank of Greece (Cyprus) at 1.83 per cent.

Eurobank offered 1.70 per cent, while Alpha Bank Cyprus paid 1.60 per cent and the Cyprus Development Bank offered 1.57 per cent.

Societe Generale Bank Cyprus offered 1.52 per cent, while the Bank of Cyprus offered 1.34 per cent.

The Housing Finance Corporation recorded the lowest rate among the institutions listed, at 0.99 per cent.

For corporate deposits, Alpha Bank Cyprus offered the highest rate at 1.98 per cent, closely followed by the National Bank of Greece (Cyprus) at 1.96 per cent.

Eurobank offered 1.75 per cent, while the Cyprus Development Bank paid 1.57 per cent and the Bank of Cyprus offered 1.31 per cent.

The Housing Finance Corporation recorded a rate of 0.99 per cent, while Societe Generale Bank Cyprus offered 0.90 per cent.

The figures highlight the gap between the returns available to depositors in Cyprus and those across the wider euro area, with businesses facing an even larger difference than households.

On the lending side, however, Cyprus remained below the eurozone average for new housing loans.

The average interest rate charged on new housing loans to households stood at 3.24 per cent in Cyprus, compared with 3.64 per cent across the euro area.

Alpha Bank Cyprus offered the lowest rate among the listed institutions, at 2.80 per cent, followed by Eurobank at 3.21 per cent.

Ancoria Bank charged 3.27 per cent, while the Bank of Cyprus recorded 3.37 per cent.

The Housing Finance Corporation had the highest rate among the institutions listed, at 3.55 per cent.

The CBC figures also show differences in the cost of business borrowing, depending on the size of the loan.

For new corporate loans of up to €1 million, the average interest rate in Cyprus stood at 4.67 per cent.

Alpha Bank Cyprus charged 4.28 per cent, while the National Bank of Greece (Cyprus) recorded 4.40 per cent and Eurobank 4.34 per cent.

The Bank of Cyprus charged 4.86 per cent, while Societe Generale Bank Cyprus recorded 5.70 per cent.

The highest rates in this category were recorded by the Cyprus Development Bank at 7.90 per cent, and Banque SBA at 7.46 per cent.

For larger corporate loans exceeding €1 million, the average rate in Cyprus was lower, at 4.15 per cent.

Alpha Bank Cyprus recorded the lowest rate in this category, at 3.81 per cent, followed by the Bank of Cyprus at 4.22 per cent.

Eurobank charged 4.42 per cent, while Ancoria Bank recorded 4.44 per cent and the National Bank of Greece (Cyprus) 4.59 per cent.

The figures suggest that while Cypriot borrowers generally faced lower interest rates than the eurozone average in the categories covered, the cost of financing varied considerably between institutions, particularly for smaller business loans.

The CBC’s September figures cover new deposit and lending business, rather than the outstanding stock of existing deposits and loans.