Eight banks also have interest rate offers for two-year deposits in euros, but only three of them–UniCredit, ProCredit and Raiffeisen–decided to test the market for three-year deposits as well. Four banks offer three-year deposits in lei.
Interest rates offered on long-term deposits differ significantly from one bank to the next, with major brands being less generous than smaller banks.
The interest rate on a two-year deposit in euros may reach 4% a year, while the interest rate can even exceed 6.4% on leu-denominated deposits.
Such interest rates on leu amounts could be considered attractive if the downward trend of inflation and of the reference interest rate for the Romanian currency continued, which is unlikely to happen. Inflation could remain above 5% next year and interest rate income is taxed by 16%.
For clients with more cash available, alternative investments in government bonds can be attractive, especially since their secondary market is also on the rise. Bond yields have lately been on a slight rise, with three-year bonds reaching a 6.5% yield.
(English version by Daniela Stoican)