According to Paavo Truu, Chief Financial Officer of Coop Pank, the interest rates on Estonian banks’ term deposits have been the highest in Europe over the past year. Now that inflation is easing in Europe and interest rates in the markets are going down, Coop Pank has also adjusted the interest paid on term deposits.
Truu added that as interest rates on deposits have started to fall, it makes sense for savers to choose longer-term deposits at the current rates. By making deposits for short periods and then renewing them, it is more likely that by the time the renewal takes place, the deposit rates will have fallen further and the renewal will therefore have to be made at a lower than initial interest rate
All current interest rates on term deposits can be found here.
In addition to fixed-term deposits, Coop Pank pays 0.5% interest per year on the balance of a business client’s current account, 1% interest per year on the balance of a private client’s current account and 2% for Cash Drawer users.
Adjusted interest rates on term deposits
As of 8 January, Coop Pank will pay 3.75% interest on deposits of 3-5 months and 4% on deposits of 6-17 months. Interest rates on longer-term deposits range between 2.5% and 3.25%.