Long term deposits of more than two years have increased in the beginning of this year compared to December 2014, based on official data released by Bank of Albania. Experts say that individuals have started depositing their savings in a long term, which is affecting in the non decrease of Bank’s deposits’ interests. After Bank of Albania decreased the interest of deposits in 2%, lowest record registered by this bank, short term deposits of 13 billion ALL total amount were transformed into long term deposits.
According to experts, in this situation interest may increase only by funds of investments and support the easing monetary policy as a mechanism that will boost lending and private investments in our country.
The average interest of deposits in Albanian Lek decreased during February, compared to October 2014 and according to the reports issued by Bank of Albania on the level of interests that banks offer for deposits, the maximal interest rate for deposits with 12 months maturity reaches 2.4% and the minimal norm is only 0.2%. Experts say that interest rates will lower during this year compared to 2014 due to the increase of income taxes to 15% from 10% that were last year.
News source/photo credits: ATA
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