Banks, Estonia, Financial Services, Investments

International Internet Magazine. Baltic States news & analytics Sunday, 06.04.2025, 16:07

Estonian banks have lowered interest rates on deposits held in kroons

Juhan Tere, BC, Tallinn, 20.01.2010.Print version
During the past few weeks, the banks in Estonia have forcefully lowered interest rates on deposits held in kroons, Äripäev/LETA writes. Experts note that this means that the money is to start looking for new investment options instead of savings deposits. One of the forecast options where the money will start moving is real estate, the other is investment products offered by banks.

While a year ago, the interest rates of kroon deposits were at the level of up to 7 % (depending on the type of deposit, BIG offered even more), several times higher than the euro deposit interest rates, then by now the kroon has been dethroned – the annual interest rate of kroon deposits is around 2 %, catching up with interest rates of euro deposits.

 

Banks say that euro and kroon interest rate becoming closer is caused by increase of liquidity of the kroon and the hope that Estonia will soon join the euro area.

 

SEB investments direction business development manager Kaur Elviste also pointed out statistics that till spring 2007, the interest rates of one-year deposit of kroons and euros were equal.

 

"Increase in likelihood of joining the euro should result in these interest rates equalising again soon,” said Elviste.





← Back↑ Up

Русский
Search site