site.btaInterest Rates on New Term Deposits Rising, Half of Bulgarians' Savings Are up to BGN 1,000 - Association of Banks in Bulgaria

Interest rates on new term deposits in leva for households are slightly increasing, reaching 1.02% at the end of September 2024 compared to 0.63% at the end of September 2023, the Association of Banks in Bulgaria (ABB) told BTA on World Savings Day, October 31. On this date in 1924, at the 1st International Savings Bank Congress in Milan, October 31 was designated World Savings Day to promote savings and the use of banks to preserve funds.

Interest rates on newly-negotiated deposits in euro have also increased, reaching 1.77% at the end of September 2024 compared to 1.04% at the end of September last year, the ABB reported.

At end-September this year, the amount of household deposits amounted to BGN 85.1 billion (43.5% of GDP), up by 11.4 % year-on-year (compared to BGN 76.5 billion at end-September 2023).

Based on these data, the ABB concludes that Bulgarians are saving more and their interest in banks' deposit products is growing.

More than 50% of the number of household deposits are in the amount of up to BGN 1,000, followed by deposits from BGN 1,000 to BGN 2,500 (11%) and deposits from BGN 5,000 to BGN 10,000 (9%). The number of household deposits over BGN 100,000 is 131,000 (1.5 %). They amount to a total of BGN 27.7 billion.

By mid-2024, the largest percentage of household deposits was in BGN,-68.8%, followed by deposits in EUR, 26.2%, and deposits in other currencies, 5%.

The largest portion of household deposits as of end-September 2024 was in time and savings deposits (overnight deposits), which accounted for 69.1% of total deposits, followed by 30.2% in time deposits, and 0.7% in deposits arranged for use after notice.

Overnight deposits in BGN accounted for 54% of total deposits, while overnight deposits in foreign currency accounted for 15%, including 12.8% in EUR. Time deposits in BGN accounted for 14.9% and those in foreign currency for 15.4%, including 11.4% in EUR. Deposits contracted for use after notice in BNG amounted to 0.4% of total deposits, and those in foreign currency amounted to 0.3%, including 0.26% in EUR.

The ABB also reports that the number of people using the online services of banks is growing, judging by the latest data of the Bulgarian National Bank on payment statistics. The volume of credit transfers initiated on paper decreased significantly in 2023 from a year earlier, with 62.5 million credit transfers reported in 2023 compared to 228.8 million in 2022. At the same time, electronically initiated credit transfers increased by more than 32% to 186.4 million at the end of 2023 from 141.2 million at the end of 2022.