[ad_1]
Two large banks give zero to savings and citizens, the rest is around 0.1%. Everyone’s fees are rising
Falling interest rates on deposits led to zero or near zero interest rates for savings and citizens. Two of the biggest banks in two months have announced zero interest rates on savings and retail. The other large vaults offer 0.1% per annum. Thus, citizens, in addition to businesses, already pay the vaults to keep their money.
The near-zero return offered by most large banks applies to all types of deposits, regardless of the currency they are in, the terms of the contracts, or the maturity of the deposits. According to BNB data, the average interest rate ranges from zero to 0.1% per year. Since April, the average interest rate on corporate deposits in BGN has been minus 0.05%, and for savings in EUR it has been below zero since last year.
The decline is expected, as interest rates continue to fall for three years, and for four years, the BNB has set the key interest rate at zero and has not changed it. The central bank also charges banks a commission for holding excess reserves.
During the same period of time, the commissions charged by banks reversed their downward trend for the growth of basic operations, which in individual commissions is measured at 2-3 times. Experts predict that the decline in interest rates will continue at least until the end of this year.
Therefore, the return on deposits is already negative if service fees and inflation are deducted. It “bites” an average of BGN 20 out of every BGN 1,000 deposited in a bank.
Despite this trend, due to the lack of alternatives to free money, people’s savings are growing. According to BNB data, household savings amounted to BGN 57.1 billion at the end of June, BGN 4.17 billion more than a year ago and 1,000 million more than at the end of March. The company’s savings are also growing and are now just over BGN 26 billion, experts from Dimitar Radev said.
[ad_2]
