Lowest interest rates in Poland’s history

According to the data from the National Bank of Poland (NBP), in November 2020 banks paid Poles the least interest in history, amounting to PLN 1.28 billion (EUR 283.4 million). This is mainly due to the fact that Poles are increasingly keeping their money in their bank accounts. The average interest rate of which has dropped to just 0.04 percent. However, the other side of the coin is that loans have never been so cheap.

According to NBP data, in November 2020 the vast majority (78%) of money was kept by Poles on personal accounts, the average interest rate of which dropped to only 0.04%. Increasingly less Poles are also deciding to open deposits, the interest rates of which have also dropped significantly in recent months (from 1.42% in January 2020 to 0.58% in November 2020).

The transfer of a significant part of Pole’s savings to private accounts and a drop in interest rates resulted in the amount of interest paid to customers in November reaching PLN 1.28 billion (EUR 283.4 million), which is the least since the NBP started publishing such data (since December 1996).

In November, the lowest rates in history were also recorded for most types of loans - mortgage loans (2.89%), consumer loans (6.13%), the so-called other loans to households (3.76%) and loans to non-financial enterprises (2.1%).

According to the Central Statistical Office, inflation in December was 2.3%. Low price growth increases the likelihood of a reduction in interest rates, which would translate into an even greater drop in interest rates on loans in the future.