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Commercial banks continued to lower their interest rates in January, a study by Bankmonitor.hu found. By and large, banks lowered interest by 0.25 percentage points, reflecting the latest cut to the central bank’s base rate.

The survey, covering 13 banks active at a national level, also found that the differences in interest rates between various banks continued to widen, adding to confusion for customers in making the best choice for their financial needs.

Bankmonitor.hu noted that several banks bind investment options to various preconditions, while some options are available exclusively in the case of long-term deposits. Unsurprisingly, this is especially true in the case of the products promising the highest yields.

For deposits that are available without conditions, 6.34% is the highest attainable interest, ranking it 11th of the 20 bank products surveyed.

The portal also found that different banks have different motivations with their interest rate policies. While some are in need of capital and want to attract liquidity through the prospect of high interests, others are more focused on keeping and expanding their client base via their offers.

Bankmonitor.hu analyst Balázs Bonda advised those looking to make deposits to sign an agreement as soon as possible, since the central bank is likely to continue cutting the key rate, meaning interest rates are set to go lower in the near future.

Bonda added that conditions are prompting clients to seek out alternative investment options, which has mainly led to increased demand for investment funds, where it is not uncommon to see average yields of more than 10%, and even up to 15%.