Time deposits interest rates are continuing to fall and are already insufficient to offset the rate of inflation.

Banks continue to cut the interest on time deposits. In May, the average interest rate on new applications reached 0.69% for Portuguese families, while the rate offered to companies fell to 0.42%. Gross that nonetheless are already below the inflation rate in Portugal in the same month, at 1%. Ie who put their money in time deposits are actually losing purchasing power.

The average interest rate for the new term deposits of households fell from 0.85% in April, to 0.69%, according to data published by the European Central Bank on Friday. This is a new record low, far from the rates above 4.5% that banks offered in late 2011, when dipped in a liquidity crisis. Today, banks seek to restore the profitability of its financial margin, which means paying lower interest on deposits and resume lending.

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