Portuguese households have accumulated near-record amounts in bank deposits, indicating a cautious approach to personal finances even as returns on these savings have steadily declined for almost two years.
Data released by the Banco de Portugal on Monday revealed total household deposits surpassed $212.76 billion (€197 billion) in September. This figure sits just $811.08 million (€751 million) shy of the all-time high recorded in July.
The overall stock of private deposits in resident banks reached $212.868 billion (€197.1 billion) at the end of September. This represented an increase of $208.44 million (€193 million) from August.
The central bank noted a shift within these savings. Demand deposits decreased by $64.8 million (€60 million). However, this was offset by a $273.24 million (€253 million) rise in term deposits, which include fixed-term and notice accounts.
The annual growth rate for private deposits stood at 4.8% in September, matching the rate seen in August. This halted a trend of slowing growth observed since November 2023.
This steady accumulation of savings occurs despite the average remuneration on these products having decreased for 20 consecutive months.
In contrast, company deposits saw a monthly decrease. The stock of corporate deposits in resident banks totaled $78.3 billion (€72.5 billion) at the close of September.
This was $778.68 million (€721 million) less than the total recorded at the end of August 2023.
Despite the monthly reduction, the annual growth rate for company deposits remained robust at 10.9%. This marked an increase from the 9.7% annual growth registered in August, according to Banco de Portugal.