Lisbon, Oct. 1, 2026 (Lusa) - In August, Portugal recorded one of the lowest rates on new fixed-term deposits and below-average interest rates across all deposit types, according to an analysis published by the Bank of Portugal (BdP) on Thursday.
Despite this, the central bank noted that «the average interest rate on household deposits in Portugal is close to the eurozone median».
According to the BdP, in August the average interest rate on new fixed-term deposits was 1.63% in Portugal, «one of the lowest in the euro area», with Bulgaria, Cyprus, Greece, Slovenia and Croatia recording even lower rates.
The euro area average stood at 2.18%, 0.55 percentage points higher than that observed in Portugal.
The banking supervisor explains that Portugal has interest rates below the eurozone average «across all types of deposits».
Thus, in August, fixed-term deposits had an average interest rate of 1.11% in Portugal and 1.93% in the eurozone, whilst for deposits subject to notice the difference was even «more significant» (0.24% in Portugal and 1.28% in the euro area) and, for demand deposits, the rate of return in Portugal was 0.04%, below the euro area's 0.29%.
«The data shows that, on average, depositors in Portugal receive lower interest rates than in the euro area across all types of deposit,» states the Bank of Portugal (BdP), whilst noting that «the overall return does not depend solely on the interest rate for each type of deposit, but also on how savings are distributed between fixed-term deposits, deposits with notice and demand deposits».
In this regard, the central bank's data indicate that more than half of household deposits in Portugal (55% in August) are fixed-term deposits, «the highest proportion in the euro area».
However, «as these deposits generally offer higher returns than other types, they contribute to raising the average return», it notes.
The BdP's analysis also shows that the rise in interest rates that began in 2022 «was passed on more quickly to loans than to deposits», widening the spread between lending and deposit rates in Portugal.
The regulator also points out that, although deposit rates have risen, inflation remained above the rates paid to depositors for much of the period, «reducing the purchasing power of the amounts held in deposits».
The analysis published today also points out that, in August, household deposits accounted for 41% of banks' liabilities in Portugal, almost double the euro area average (22%).
This figure placed Portugal sixth among euro area countries where household deposits accounted for the largest share of bank funding.
PD/ADB // ADB.
Lusa
