Interest rates on deposit accounts reached record low levels. In the last month, mortgage interest rates have also been seriously declining according to statistics by the Bulgarian National Bank, published at the end of the week. Economists advise that personal finances should be managed wisely and that money be invested in accessible instruments, BNT reports. 

There are two main reasons for a record drop in interest rates. On one hand, this is the policy of the European Central Bank to maintain low cost for deposits and loans, and on the other hand, the accumulated funds in the banks themselves.

This in practice means that they have enough money and do not have the intention of collecting more deposits. The base interest rate at the beginning of July remains 0%.

Thus, the average interest rate on deposits on corporate interest rates already reached 0.18% in BGN.

The cost of household deposits decreased to 0.44% in BGN and 0.30% in EUR.

There is also a decrease in the profit from quick deposits - up to one day.

There is also a decrease in interest rates on loans. Consumer loans average cost 7.78%. And the cost of housing loans is already under 4%.

Low return on deposits logically leads to more spending because people have no incentive to save. Such decisions, however, must also be reasonable. July and August are the months in which most Bulgarians spend the most money, data from financial consultants show.

According to the experts, in order to fit in the monthly budget, every person should have a daily spending threshold and should go beyond it only if needed.