World Savings Day: Household deposits jump 7.5% on the year

Of that amount, overnight deposits accounted for €28.9 billion and time deposits for €8.7 billion, the HNB has told Hina on the occasion of World Savings Day, which is marked today.

A part of the deposit growth, notably in the last months of 2022, was due to cash deposs in the context of Croatia's accession to the eurozone on 1 January so that amounts in kuna could be automatically converted into euro. The amount of cash in kuna outside banks dropped from €4.7 billion in mid-2022 to €2 billion at the end of 2022 and to €700 million at the end of August 2023.

At the end of August 2022, household deposits amounted to €35 billion, up 9.4% on the year.

The slower growth in household deposits since then was due to the €1.3 billion worth of national bonds which citizens inscribed for the first time on the primary market in February and March, and possibly due to a renewed supply with euro cash.

Regarding commercial banks' announcements that they will raise interest rates on household deposits, the HNB says banks regulate those rates in line with their policy, business model, market estimates, and need for deposits, and that the HNB has no legal authority to stipulate the minimum interest on household deposits.

The raised interest on time deposits has resulted in a higher share of household time deposits in total deposits in most eurozone countries. In Croatia, the increase in interest rates has helped to stop a years-long decrease of the share of time deposits in total household deposits and its stabilisation at 24%.

Broken down by county, the City of Zagreb accounted for 28.4% of deposits and at the end of August 2023, household deposits reached €10.6 billion. Seven coastal counties accounted for 42.1% of all deposits.

Compared with 2022, deposits increased in all counties except Zagreb County, which saw a 0.1% decrease, while Krapina-Zagorje County saw the highest increase (+15.7%).

The average household deposit at the end of August 2023 amounted to €9,714.

Istria County accounted for the highest average (€15,224), followed by the City of Zagreb (€13,840), Primorje-Gorski Kotar County (€13,360), Dubrovnik-Neretva County (€13,036), Zadar County (€11,842), Split-Dalmatia County (€10,892), Sibenik-Knin County (€9,426) and Lika-Senj County (€8,000).

At the bottom were Virovitica-Podravina County (€4,547) and Vukovar-Srijem County (€4,393).