"In an environment of declining Euribor, Estonian banks have been gradually lowering interest rates, but term deposit rates in our country remain among the highest in the euro area," said Inbank’s CFO and Management Board Member, Marko Varik. According to him, Inbank attracts most of its deposits from Western Europe, but the local market remains important.
The formation of deposit interest rates is influenced by base interest rates in money markets, competition in the banking sector, and financing needs. For personal deposits opened until March 23, with terms of 12 to 60 months and amounts of up to €100,000, Inbank offers an annual interest rate of 3%.
"We collect local deposits to support Inbank's growth and ensure diversified financing. We continuously review our offerings to pay depositors a fair market rate for their money," Varik stated.
According to Varik, central bank interest rates are likely to decline further, and in the medium to long term, term deposit rates will remain below 3%. "We strongly recommend that depositors check the interest rate offered by their home bank on automatically renewed contracts and consider moving their deposit to a bank that offers a better rate," Varik added.
He also emphasized that term deposits should be held in credit institutions licensed by the Estonian Financial Supervision Authority. Deposits in credit institutions licensed by the Financial Supervision Authority, including Inbank, are state-guaranteed up to €100,000 under the Guarantee Fund Act.
Inbank's deposit portfolio exceeded €1 billion last year, and the bank has more than 107,000 depositors across Estonia, Lithuania, Poland, the Czech Republic, Austria, the Netherlands, and Germany.
