Depositors are not winning but actually losing from interest rate returns that are close to zero in warning statements. In bonds – and according to their amount – the interest rate does not exceed 1%. But while deposit rates have fallen below 1%, the defense tax on interest on deposits is further burdening depositors.
With 30% tax on deposits’ interest from the very first euro, the net interest rate in Cyprus is further declining. At a time when the levy on the island’s fledgling National Health Scheme has also been introduced.
In this new banking era for Cyprus depositors lose income but...