Greeks earn very little from bank deposits largely because the country’s banking market is concentrated and customers rarely move their money to find better rates. Four systemic banks held more than 94% of deposits in 2024, according to a final study by Greece’s Competition Commission, leaving smaller lenders with limited influence over the market.
The difference is clearest in accounts used for everyday banking. At the end of 2024, 74.2% of household deposits were held in demand accounts, while 25.8% were in term deposits. Demand accounts averaged just 0.03% interest in 2024. Term deposits paid an average of 1.8%, giving savers a better return but requiring them to lock away money for an agreed period.
The gap persisted even as European interest rates rose. The European Central Bank increased its deposit facility rate from zero in July 2022 to 4% in September 2023. But between June 2022 and May 2023, Greek banks passed on about 10% of the changes to depositors, half the 20% eurozone average cited in the report.
Why Greek savers earn so little on bank deposits
That slow adjustment widened the gap between what banks paid depositors and what they earned on lending. The Commission noted that the Greek banking system had ample liquidity. The loan-to-deposit ratio was 60.6% in 2024, compared with 100.4% across the eurozone. Greek banks’ net interest margin stood at 2.6%, against 1.6% for the eurozone.
Customers’ reluctance to switch banks also weakens pressure to offer better rates. The survey found that 80% of individuals and 84% of businesses had not sought information in the previous two years about moving some or all of their money to another bank.
Many customers said they were satisfied with their current provider or saw little difference between banks. Only 11% of individuals and 8% of businesses surveyed held term deposits.
Limited bank switching keeps competitive pressure low
The Commission said the market could benefit from stronger competition and more choices for savers. Its recommendations include attracting new banks, making it easier to compare deposit rates and switch accounts, and developing savings products that reward customers for keeping money in place over time.
It also suggested considering state-backed savings accounts modeled on France’s Livret A. Such measures could encourage banks to compete more actively for household deposits. For Greek savers, the central issue is not simply the level of European interest rates, but how little of those changes reaches their bank accounts.
That leaves households with a choice between keeping money readily available at very low returns or accepting the conditions attached to a term deposit.
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