Interest rates on time deposits in certain domestic banks seem to have started to decline slightly. After banks entered a sort of ‘race’ last autumn to see who could offer the highest interest rates on savings, this trend has come to an end.
Thus, Kent Bank in October offered an interest rate of 3.10 percent on time deposits for a period of six to 12 months, while today it offers 2.40 percent on six-month time deposits and 2.20 percent on 12-month time deposits. They claim that there is currently also an interest rate of one percent, but only for automatic deposit renewals.
Furthermore, Hrvatska poštanska banka (HPB) was the first to raise rates in October 2023 by introducing the so-called ‘HPB – Super Savings’, but at the beginning of January, they abolished it in order to ‘be able to continue supporting the citizens of Croatia in the fight against inflation’.
– For HPB clients who are individuals with regular income in a transaction account at the Bank and for individual clients who own business entities operating through accounts at the Bank, who from January 2, 2024, deposit time deposits for six months, an interest rate of 3.00 percent per annum is approved, and for a term of 12 months, an interest rate of 2.30 percent per annum – said HPB.
Privredna banka Zagreb (PBZ) also reduced its interest rate, offering 1.7 percent for a period of 12 months in October, while currently, according to the HNB’s Informative List, it offers 0.8 percent. However, the interest rate for six-month time deposits remained the same at 1.5 percent.
