Polish Term Deposits Surge in October, Reaching Record Levels

Poland’s term deposit market experienced a notable surge in October, with over PLN 85.83 billion deposited, according to data from the National Bank of Poland (NBP). This marks one of the strongest monthly results over the past year, surpassing September’s total of PLN 82.63 billion by more than PLN 3 billion.

A significant portion -56% of October’s deposits were placed in accounts with terms longer than one month but not exceeding three months. This reflects a growing preference for slightly longer-term savings products.

However, deposits for the shortest terms, up to one month, saw a marked decline. In October, these deposits amounted to PLN 11.53 billion, a sharp drop of PLN 4.13 billion compared to the PLN 15.66 billion recorded in September. Conversely, deposits with terms of one to three months reached a record-breaking PLN 48.20 billion, up by PLN 6.51 billion from September’s PLN 41.69 billion. This represents the highest figure for this category since the NBP began publishing such data.

The average interest rate for deposits opened in October was 4% per annum, continuing a slight downward trend with a monthly decrease of 0.06 percentage points. The steepest rate drop occurred in deposits with terms of up to one month, where the average rate fell from 4.01% in September to 3.75% in October. Meanwhile, deposits with terms of three to six months saw a modest rate increase, averaging 4.27% in October compared to 4.25% in September.

The data highlights shifting preferences among Polish savers, with greater emphasis on deposits offering higher returns over slightly extended terms despite the overall decline in interest rates for shorter-term deposits.