09.05.2018 | Estimated 3 minutes reading time | Print this article

Interest Rate Radar: Italian Corporate Interest Rate Plummets to All-Time Low

Highest Retail Deposit Interest Rates in the EU:
Compared to the previous month, there were no changes in the ranking of countries: Italy remains the best ranked country (1.50%) and Ireland at the bottom of the ranking (0.29%). The average of the top 5 term deposit offers from Portugal with maturities of 1 year and 3 years decreased sharply, by 0.04 and 0.12 percentage points, respectively, in the past month. In the course of the past 12 months, Portuguese 1-year rates decreased by 18.3% and 3-year rates even by 50.9% – the largest decrease of all countries within the period mentioned. On the other hand, German 1-year and 3-year rates seem to have stabilized and even increased in the past 12 months: German 1-year rates increased by 6.3% and 3-year rates by 15.0%.


Retail Deposit Interest Rates of the 3 Largest Banks:
Almost all major banks from the Eurozone are still offering close-to-zero interest rates that are only a fraction of the local averages, resulting in high ratios of the 3 largest banks versus the top 5 offers. With the exception of Germany, Netherlands and Portugal, ratios did not change compared to the previous month: Due to an increase of the average interest rate of local top offers in Germany, the ratio has risen to 28 and is close to all-time highs. The three largest banks in the Netherlands decreased their 1-year term deposit offers on average by 0.02 percentage points, which resulted in an increase of the Dutch ratio to 15. Average interest of local top offers in Portugal decreased by 0,03 percentage points – as a result the ratio has fallen by one point to 12. Ireland is still the only country where major banks are offering the highest retail deposit interest rates in the country!


Historical Development of Corporate Deposit Interest Rates:
Italian corporate deposit interest rates continue to collapse: In the observed period, the average interest rate for new deposits with maturities of less than or equal to one year has never been as low as they it is now – 12 months ago it was four times as high. Today, the Italian average interest rate is at 0.25% and only slightly above the Spanish average interest rate of 0.24%. In the past month, the French corporate interest rate has risen slightly faster than the euro area average and is now at 0.11% just above the euro area average of 0.09%. German and Dutch interest rates continue to remain close to their all-time lows of -0.09% and -0.23%, respectively.


Current Corporate Deposit Interest Rates in the Euro Area:
In the past month, the Latvian corporate deposit interest rate has increased by an incredible 122-fold to 1.22%! Corporate deposit interest rates from Cyprus and Greece continue to remain at a high level of 1.10% and 0.94%, respectively. Banks from the Benelux countries and Ireland are offering the lowest interest rates in the euro area: Netherlands (-0.23%), Belgium (-0,15%), Luxembourg (-0.10%) and Ireland (-0.10%).


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As of 26 April 2018; Sources:

Austria: biallo; Erste Bank, Raiffeiseinbank Oberösterreich, BAWAG PSK
Belgium: Spaargrids; ING Belgien, KBC, Belfius Bank
Denmark: mybanker; Danske Bank, Nykredit, Nordea
France: FranceTransactions, cbanque; BNP Paribas, Societe Generale, Crédit Mutuel
Germany: biallo; Deutsche Bank, Commerzbank, HypoVereinsbank

Ireland: Bonkers.ie; Bank of Ireland, AIB, Ulster Bank
Italy: Conti Deposito; UniCredit, Monte Dei Paschi Di Siena, Mediobanca
Netherlands: Spaarrente; ING, Rabobank, Abn-Amro
Norway: Norsk Familieøkonomi; DNB, Danske Bank, Nordea
Poland: Oprocentowanie; PKO Bank Polski, Bank Pekao, mBank

Portugal: Pedro Pais; BPI, BCP, Novo Banco
Romania: Conso.ro; BCR, BRD, Banca Transilvania
Spain: bankimia, iahorro, helpmycash; Santander, BBVA, Sabadell
Sweden: Finansportalen; SEB, Nordea, Swenska Handelsbanken
United Kingdom: Moneysupermarket; HSBC, Barclays, RBS