Deposit interests have been going down lately, influenced by the key rate cuts operated by Romania’s central bank. The central bank cut the key rate four times this year, taking it to an all-time low of 1.75%.
Whereas smaller banks are still offering more than 3%, the large banks do not. BRD pays 2.2% interest per annum, while BCR only 1.9% per annum. Banca Transilvania offers 2.85% for one-year deposits.
Interests were as high as 3.65% in March, in RIB’s (currently Idea Bank) case. The central bank has cut the key rate twice since early March, from 2.25% to 2% and then from 2% to 1.75%.
Despite dwindling interest rates, deposits continued to increase because of the limited investment choices, people’s low risk appetite and the lack of information about other investment choices, analysts say.
Retail and corporate deposits amounted to some 226.7 billion lei (EUR51 billion) at the end of March, up 5.9% on the year-ago period. Leu deposits rose by 6.9%, while foreign currency deposits by 4%.
(English version by Loredana Fratila-Cristescu)