Household savings in Serbia have experienced steady growth throughout 2025, with both dinar and foreign-currency deposits reflecting increased depositor confidence despite tightening financial conditions in Europe. Data from the National Bank of Serbia indicates that trends observed in the first half of the year continued into the latter half, highlighting a gradual shift toward savings in the domestic currency.
From July to December 2025, household savings in dinars rose by 10.4 billion dinars, marking a 5.3% increase over six months. By the end of December, total dinar savings reached 206.2 billion dinars, the highest figure recorded to date. Annually, dinar deposits increased by 15 billion dinars, representing a growth rate of 7.8%, significantly surpassing inflation rates and underscoring the ongoing appeal of dinar instruments compared to euro-denominated options.
In contrast, foreign-currency savings also grew but at a slower pace. During the second half of 2025, household foreign-currency deposits rose by 459.5 million euros, or 2.9%, totaling 16.2 billion euros by year-end. For the entire year, foreign-currency savings expanded by 772.5 million euros, reflecting an annual growth of approximately 5%. This slower increase compared to dinar savings can be attributed to lower interest rates on euro deposits and a stable exchange-rate environment that diminished the demand for foreign currency as a precaution.
A notable structural change highlighted by the central bank is the increasing share of dinar savings within total household deposits. By December 2025, dinar savings accounted for nearly 10% of total household deposits in the banking sector, a level previously deemed unattainable a decade ago. Although foreign-currency savings still make up a larger portion of deposits, the rising share of dinar savings indicates a long-term trend towards a partial re-dinarisation of household finances.
Several factors contributed to this shift during 2025. The relative stability of the dinar against the euro reduced perceived currency risk, while interest rates on dinar savings remained significantly higher compared to those on euro deposits. Additionally, the credibility of monetary policy and predictability within the macroeconomic framework influenced depositor behavior. Households increasingly adopted a diversified approach to their savings strategies, opting to expand overall savings while gradually increasing their exposure to domestic currency.
From a banking perspective, the concurrent growth of both dinar and foreign-currency deposits enhanced funding stability throughout the year. The rise in household deposits provided banks with a stable and cost-effective funding source, thus supporting lending activities without an increased reliance on external borrowing. The growth of dinar deposits specifically improved currency matching on bank balance sheets and mitigated systemic risks associated with exchange-rate fluctuations—a longstanding vulnerability within Serbia’s financial system.
These data trends also have broader macroeconomic implications. The ongoing accumulation of household savings suggests that growth in disposable income was not fully reflected in consumption during 2025, indicating a more cautious spending approach amid global uncertainties and elevated interest rates across Europe. This behavior has helped maintain external balances and bolster domestic financial stability, even as economic growth moderated compared to previous post-pandemic recovery years.
Looking forward, the future trajectory of household savings will likely remain closely tied to interest rate movements, exchange-rate stability, and income growth dynamics. While foreign-currency deposits are expected to continue dominating in absolute terms, the sustained growth of dinar savings through various economic cycles positions them increasingly as a structural element within Serbia’s financial landscape rather than merely a temporary reaction to short-term incentives.
