Contrary to the prevailing market trend, Estonia’s own Holm Bank has again temporarily raised the deposit rate above 4%. By signing a deposit contract before 24 June, one can secure and grow their savings at a high interest rate of 4.1% for three months up to five years.
“By the end of last year, most banks started to reduce the interest rates they offer on deposits. The recent decision of the European Central Bank to cut the base interest rate will give further impetus to this trend and will lead to a further decline in deposit interest rates,” said Holm Bank’s CEO Kaspar Kalvet.
According to Kalvet, deposit interest rates in Estonia have already mostly fallen below 4%, and the interest rates for longer term deposits are now broadly between 2% and 3.5%. “We expect the general downward trend to persist, which means that every deposit that will mature soon can only be extended at a lower interest rate. In a year’s time, significantly lower interest rates than today could be the market norm. Therefore, it is worth considering opening longer term deposits now, in order to maintain a high deposit interest rate for many years to come,” said the bank’s CEO.
“When we acquired a banking licence, we promised that by entrusting their savings to our bank, our clients would enjoy the best deposit interest rates on the market. Holm’s journey has been a successful one – our modern services are finding their way to more and more clients, last year proved to be the most successful in our history and our recently completed first public bond offering was oversubscribed six times. We intend to share the bank’s success with our clients and keep the promises we have made,” Kalvet confirmed.
“We will keep Holm’s deposit interest rates high for as long as possible and decided to delight our clients with a time-limited offer before the start of summer, allowing deposits to be opened at an interest rate of 4.1% until Midsummer Day. This high interest rate applies to all deposit periods, so clients can choose the one that suits them best," he added.
According to Holm’s CEO, term deposits remain the best way to secure and grow savings. Each deposit in Estonian banks is protected by the Guarantee Fund by up to a maximum of 100,000 euros.