The main objective of this paper is to examine and analyze the movements of lending and deposit interest rates in Croatia. The task is to detect determinants and variables related to interest rate monitoring. By using secondary data generated from previous research articles based on relevant topics conducted by other authors and institutions this paper delivers more detailed insight into the current situation of interest rates fluctuations, as well as previous trends and tendencies. This paper presents the term and types of interest rates, their role in the financial sector and real sector of the economy. Furthermore, paper graphically depicts their movements with regard to different types of currency placements (kuna indexed, kuna and foreign currency credit), with regard to maturity (short-term and long-term) and with regard to type of placements (households, non-financial corporation). The paper also shows relationship of lending and deposit interest rates with the factors affecting interest rates: monetary policy, market conditions and macroeconomic conditions to gain an insight into what variables show the highest correlation with interest rates in Croatia. Following the analysis, interest rate spreads are presented as well as the comparison of international interest rates using data of the selected member countries of the European Union. In conclusion, based on the secondary data derived from the professional literature and from the results and indicators, the final findings are highlighted that arise from the work.