Deposits poised for growth in 2026: the key drivers
Τhe implementation of tax relief and income support measures that come into effect from January 2026, as well as the growth rates of private deposits in 2025 provide encouraging signs for a significant increase in deposits in 2026.
In the Interim Monetary Policy Report, the Bank of Greece pointed out that these measures are estimated to have a positive effect on the increase in the volume of deposits, while the demand for deposits is expected to evolve in line with the rise in GDP and, especially for households, with the course of disposable income.
However, a negative determining factor is going to be – if it continues – the gradual decline in deposit interest rates, which makes bank deposits unattractive as a means of holding wealth. Indicatively, it is reported that in January to October, the weighted average interest rate on existing household deposit balances has decreased by 17 basis points compared to the beginning of the period, while it stood at 0.44% in January. As for new deposits, the average interest rate has decreased by 9 basis points (0.38%).
In particular, household deposits recorded a cumulative increase of 1.9 billion euros, compared to an increase of 0.4 billion euros in the same period last year, with the annual growth rate accelerating to 3.4% from 2.4% in 2024. This is due, according to the BoG, to the observed favorable development of nominal disposable income in 2024 and early 2025, but also to developments in lending to households.
On the other hand, business deposits increased by 1.2 billion euros in the first ten months of 2025, compared to an increase of 0.8 billion euros in the corresponding period of 2024, with the annual growth rate remaining at high levels, around 12%, when last year it was 11.4%. The increase in deposits of Non-Financial Corporations (NFCs) mainly reflects the increase in overnight deposits, which is consistent with the continued strengthening of credit expansion to businesses, while – also due to the de-escalation of interest rates – time deposits of NFCs recorded only a small increase (0.2 billion euros).
