02:30 PM
Sunday 26 June 2022
I wrote – Manal Al-Masry:
Over the past 3 months, some major government and private banks have resorted to offering new savings certificates at a high interest rate with the aim of addressing a certain segment of large customers following the Central Bank raised the interest rate in an attempt to absorb inflationary pressures.
The Monetary Policy Committee of the Central Bank began raising interest rates by 1% in an extraordinary meeting on March 21 for the first time in 5 years, and then raised it once more by 2% last May.
The Monetary Policy Committee of the Central Bank of Egypt decided to fix interest rates during its meeting last Thursday at the level of 11.25% for deposits and 12.25% for lending.
Six banks offered new high-interest certificates to attract large customers, following setting a minimum purchase price for them ranging from 50 thousand pounds, 100 thousand pounds, 250 thousand pounds, 500 thousand pounds and one million pounds, according to the policy of each bank.
The list of these banks includes Commercial International CIB, Housing and Development, National Kuwait, Egyptian Gulf Bank EG Bank, Al Ahli of Kuwait, Abu Dhabi Commercial.
By offering these certificates, the banks aim to attract a certain segment of customers and deposits of a larger size, and reduce the cost of the interest burden. At the same time, the banks themselves offer other certificates to all customers, whose purchase starts from the first thousand pounds or 5,000 pounds, but with lower interest.
Masrawy presents in the following details the types of new certificates with a fixed return in 6 banks and the minimum purchase amount.
Housing & Development Bank
Royal Triple Certificate: an interest rate of 14.25%, the return is paid annually.
Minimum purchase: not less than one million pounds.
Al Ahli Bank of Kuwait
It offers a triple certificate: the interest rate is 14% and the return is paid monthly.
Minimum purchase: its purchase starts from one million pounds.
National bank of Kuwait
It offers a triple certificate: the interest rate is 13.5% annually and the return is paid monthly.
Minimum purchase: not less than half a million pounds.
Abu Dhabi Commercial Bank
Triple Certificate (Excellence): The interest rate is 14% annually, and the return is paid monthly.
Minimum purchase: The minimum purchase amount is no less than 250 thousand pounds.
Commercial International Bank CIB
Triple Certificate: It offers an interest rate of 13.5% annually, and the return is paid monthly.
Minimum purchase: not less than 100 thousand pounds.
Quadruple Certificate: an interest rate of 14% annually, and the return is paid monthly.
Minimum purchase: not less than 100 thousand pounds.
Egyptian Gulf Bank EG
It offers a triple (premium) certificate with a fixed return: the interest rate is 13.5% annually and the return is paid monthly.
Minimum purchase: 50 thousand pounds.
