Household Deposits Reach €197.8 Billion in July, Bank of Portugal Data Shows
The total stock of deposits from private individuals in resident banks amounted to €197.8 billion at the end of July 2025, according to data released today by the Bank of Portugal. This figure represents an increase of €1.975 billion compared to the previous month. However, the central bank highlighted a continuing trend of slowing growth in household savings.
The annual growth rate of private deposits was 4.9% in July. While positive, this marks a deceleration for the ninth consecutive month. In June, the year-over-year growth rate had been 5.2%, indicating a steady decline in the pace at which households are accumulating savings. This trend is being closely watched by economists as a potential indicator of pressure on family budgets.
The detailed breakdown provided by the Bank of Portugal shows that the monthly increase was primarily driven by a €1.697 billion rise in demand deposits, which are highly liquid accounts. Term deposits, which represent more dedicated savings, saw a smaller increase of €278 million. This preference for liquidity may suggest a cautious stance among households, who prefer to keep funds accessible rather than committing them to longer-term instruments.
Financial analysts suggest the slowdown in savings growth is a direct consequence of the current economic environment. "For nearly a year, we've seen the rate of savings growth decline. This is the logical outcome of a period where wage increases have not kept pace with inflation, and rising interest rates have increased the cost of servicing debt for many families," commented a senior analyst from a national financial institution. "This directly impacts the capacity for major investments, including real estate down payments."
In a contrasting trend, the corporate sector showed robust financial health. The stock of deposits from companies totaled €70.6 billion at the end of July, an increase of €253 million from June. The annual growth rate for corporate deposits accelerated to 10.5%, up from 6.7% in the previous month, signaling strong liquidity and profitability in the business sector.
The Bank of Portugal's report provides no forward-looking statements but presents the factual basis for its monetary policy and financial stability assessments. The continued deceleration in the accumulation of household savings, a trend now approaching a full year, will be a critical variable in forecasting domestic consumption and investment for the remainder of 2025.
The central bank will continue to publish these figures monthly, providing a regular snapshot of the financial position of both households and firms in Portugal. The next report is expected to shed light on whether this trend of slowing savings growth will persist into the latter half of the year.
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