Italian residents' deposits with domestic banks fell in June, hitting their lowest level in over three years, Bank of Italy data showed on Wednesday, as savers sought higher returns for their cash eroded by rising inflation and interest rates.

On a monthly basis, deposits in euros fell by nearly 170 billion euros ($186.6 billion) to 2.44 trillion euros in June.

At the end of June, Italian banks repaid some 143 billion euros in targeted longer term European Central Bank funds. ($1 = 0.9111 euros) (Reporting by Sara Rossi Editing by Keith Weir)