Erste Bank will increase interest rates on newly contracted citizen deposits in euros and dollars by an average of one percentage point starting May 1 of this year. This marks the first increase in interest rates on deposits in all currencies since 2009, and depending on the model and maturity of the savings, the new interest rates will range from 0.3 percent to 1.5 percent, compared to the current rates of 0.02 percent to 0.1 percent. The new interest rates will also apply to existing term deposits from the date of the next automatic extension, if contracted, according to the bank’s statement.
For standard and rental savings models, the new interest rates will be from 0.3 percent for a savings period of one to 12 months, with a minimum maturity for these savings models in euros being 12 months. For savings in dollars and other currencies, the minimum maturity is one month for standard savings and three months for rental savings.
For deposits of these maturity models from 12 to 24 months, the new interest rate will be one percent, for terms up to 36 months 1.3 percent, and for maturities greater than 36 months 1.5 percent. Active savings with a premium will carry an interest rate of 0.3 percent for a period of 6 to 12 months, one percent for a term up to 24 months, and 1.3 percent for a maturity of, for this model, a maximum of 36 months. The interest rate for Medo Štedo children’s savings and Erste Club savings for youth will be 1.5 percent for all maturities.
The total volume of citizen deposits at the end of 2022 amounted to 5.9 billion euros, representing a 25 percent increase compared to the previous year.
At the same time, starting April 25, 2023, interest rates for all models of newly contracted cash loans will also increase, on average by 0.7 percentage points. Standard cash loan models will thus have a fixed interest rate ranging from 5.9 to 6.4 percent, compared to the previous rates of 4.99 to 5.49 percent.
Cash loan models for retirees will have a fixed interest rate of 5.5 percent, compared to the previous 4.99 percent. Interest rates on cash loans with repayment insurance, depending on the clients’ ratings, will range from 5.2 to 5.7 percent, compared to the previous rates of 4.49 to 4.99 percent.
