In May, Greek banks reduced interest rates on both deposits and loans. Specifically, the weighted average interest rate for new deposits dropped to 0.35%, while that for new loans fell to 4.66%. This resulted in a reduction of the interest margin between existing deposits and loans to 4.57 percentage points. According to data from the Bank of Greece (BoG), in May 2025, the average weighted interest rate for total new deposits decreased by 3 basis points compared to the previous month, settling at 0.35%. The average interest rate for overnight household deposits remained unchanged at 0.03%, while for business deposits it stayed nearly constant at 0.11%. The average interest rate for deposits with agreed maturities of up to one year from households declined by 6 basis points to 1.27%, and for business deposits, it dropped by 14 basis points to 1.84%. Meanwhile, the average weighted interest rate for all new loans to households and businesses decreased by 14 basis points, reaching 4.66%. Notably, the average interest rate for consumer loans without a fixed term—such as those issued through credit cards, open-end loans, and overdrafts—fell by 10 basis points to 14.61%. For consumer loans with a fixed term and variable interest rate, the average rate decreased by 19 basis points to 11.24%. Similarly, mortgage loan rates with variable interest rates went down by 8 basis points to 3.57%. Business loans without a fixed term saw their average interest rate decline by 7 basis points to 4.85%, while professional loans’ rate dropped by 8 basis points to 6.91%. New business loans with a specific maturity and variable interest rate decreased by 21 basis points to 3.95%. Loans with regular maturities and variable interest rates extended to small and medium-sized enterprises (SMEs) experienced a decline of 27 basis points, ending at 4.20%. In terms of loan size structure, the average interest rate for loans up to 250,000 euros fell by 7 basis points to 4.78%, for loans ranging from 250,001 to 1 million euros, it dropped by 23 basis points to 4.32%, and for loans exceeding 1 million euros, it decreased by 14 basis points to 3.89%.
Greek Banks Lower Deposit and Loan Rates in May
—