ZERO INTEREST RATE ON BANK DEPOSITS

Interest rate on deposits is 0%, according to the latest reports by the Bulgarian National Bank. Some simple calculations show that the interest rates for some deposits are negative and clients have to pay if they want to keep their money in banks.

The most unfavorable bank offer at the moment is a 0.01% interest rate, which in practice means that after deduction of taxes and fees, customers will have to owe money to the bank.

Most disadvantaged is the situation for people with saving accounts because the service fees eat up the profit.

The highest interest rate at the moment is a promotional offer in one of the banks, by the end of August and it is 1.77%.

There are now many offers in which customers have to pay monthly fees and receive zero interest rates.

At the background of this data comes the profit for the banks. For the last 6 months, it is 50% more in comparison to 2015. On one hand, it is because of the clearing of bad loans due to the stress tests in the system. On the other hand, it is because of the lower interest rates.

There is a boost in bank lending. BNB reports an increase in loans given to companies and individuals.