Households Deposit Record Sums as Bulgaria Prepares to Enter Eurozone

Bulgarians have deposited a total of 700 million leva in banks in just one month, according to recent statistics from the Bulgarian National Bank for September. The surge in household deposits has been particularly pronounced for euro-denominated savings, with term deposits totaling 334 million leva - an increase of 57% compared with August and 26% higher than September last year, reports "Sega".

The approaching adoption of the euro on January 1, 2026, is driving this heightened activity, as more people look to secure their cash in banks ahead of the currency changeover. Many households are depositing leva they hold in cash, allowing banks to automatically convert the funds into euros on the first day of the year without fees. In September alone, 325 million leva were deposited in banks in cash, marking a 27% rise from the same month in 2024. This trend has been gathering momentum since June, when positive reports from the European Commission and European Central Bank confirmed Bulgaria’s eurozone entry, prompting banks to temporarily waive fees on leva deposits.

Euro deposits are also seeing notable growth, as households either deposit euros they already hold or convert them from leva. With the surge in bank deposits, interest rates are declining. Leva term deposits now offer an average annual yield of 0.8%, down from over 1% a year ago, while smaller banks still provide some interest. Euro deposits yield more: the average effective annual rate in September was 1.31%, compared with 1.77% a year earlier and 1.09% in August.