Bulgaria Sees Rising Deposit Interest Rates, Loan Rate Hikes Expected Only in Late 2026

Recent analysis by the financial portal "Moite pari" indicates that interest rates on bank deposits are starting to climb, particularly noticeable among smaller banks over the past year. A notable trend is the gradual equalization of returns on savings held in both Bulgarian lev and euro.

Deposits continue to be the preferred and most popular method for households to save money. Data from the Bulgarian National Bank (BNB) show that the average interest rate on leva investments hovers around 1%, while deposit rates reach approximately 1.45%.

Despite this, the market now offers deposit interest rates as high as 2.6% in both leva and euro. Desislava Nikolova, a financier and author of the analysis, points out that the most appealing rates for 12-month deposits in these currencies generally fall between 1% and 2%. She explains that while major banks tend to hold back from raising rates, smaller banks are more willing to offer slightly higher returns. However, Nikolova adds that there are currently no signs pointing to a widespread surge in savings interest rates.

On the lending side, mortgage interest rates remain relatively low, with Bulgaria having the second-lowest rates in the EU after Malta. While Malta’s rate stands at 1.5%, Bulgarian mortgages average just under 2.5%. Nikolova notes that even if economic conditions call for higher rates, banks may hesitate to increase loan costs due to an abundance of available capital that still needs to be placed.

The analysis forecasts that any significant rise in loan costs or deposit yields is unlikely before the second half of 2026, suggesting that the market will maintain its current stability for some time.