03:00 pm
Wednesday 08 June 2022
I wrote – Manal Al-Masry:
During the current month, the National Bank raised the interest rate between 0.25% to 1% on short-term deposits with a return disbursed at the end of the period as part of its package of decisions to adjust interest rates on the price structure, whether savings vessels or loans.
The Assets and Liabilities Committee (ALCO), which is responsible for setting the interest on the interest rate structure in the bank, had decided to increase the interest rate alongside deposits on all investment certificates between 1% to 1.5%, and to raise the return by 3% on the platinum certificate with a term of 3 years, and 3% on the certificate. Five Platinum, and reducing the interest on personal loans by 1%, following the decision to stop the one-year certificate with a high return of 18% on Monday last week.
Short-term deposits with a return disbursed at the end of the period attract a specific type of clients who do not wish to link their savings in certificates for long periods due to their constant need for liquidity.
The terms of short-term deposits range from one week, two weeks, one month, two months, 3 months, 6 months and up to a year.
There are also deposits with a term of more than one year, but at low prices, and the rate of return varies between them according to the term of each deposit. The customer is allowed to link a deposit of the first thousand pounds, except for deposits less than a month, whose purchase value must not be less than 100 thousand pounds.
The deposit can be recovered before the end of the term, but the customer will not receive its return according to the rules and conditions announced in the bank, and the customer has the right to borrow once morest the security of the deposit according to the rules in force.
The Central Bank of Egypt raised interest rates by 2% during the last meeting of the monetary policy committee of the bank on Thursday, May 19, to reach 11.25% for deposits and 12.25% for lending.
Masrawy provides details of the interest rate on short-term deposits, following adjusting them, at the National Bank of Egypt:
– From one to two weeks: the interest rate is 3% annually, and the minimum deposit link starts from 100,000 pounds.
From two weeks to less than a month: the interest rate is 3% annually, and the minimum deposit link starts from 100,000 pounds.
From one month to more: the interest rate is 4.5% annually, and the minimum amount for tying the deposit starts from one thousand pounds.
From two months and less than 3 months: the interest rate is 5% annually, and the minimum amount for tying the deposit starts from one thousand pounds.
From 3 months and less than 6 months: the interest rate is 5% annually, and the minimum amount for tying the deposit starts from one thousand pounds.
From 6 months and less than a year: the interest rate is 5.5% annually, and the minimum amount for tying the deposit starts from one thousand pounds.
