The Assets and Liabilities Committee at the National Bank of Egypt (NBE) decided, last Thursday, to reduce the return on its three-year platinum savings certificates by 1%.
The monthly return on this certificate will now stand at 11%. The bank has also decided to stop issuing the platinum certificate with a quarterly return.
In a similar move, Banque Misr has decided to reduce monthly return by 1% for the Al Qimma certificate to reach 11%. The bank also cancelled the certificate with a quarterly return.
The Platinum and Al Qimma certificates are the most popular among savings vessels available in the Egyptian market. The certificates, which are the most popular in terms of household sector savings, providethe highest interest for three-year certificates.
The NBE and Banque Misr’s move is an important market indicator, as the remaining banks working in the Egyptian market usually follow the steps of these two banks with regard to interest rates.
NBE Vice Chairperson Yehia Aboul Fotouh said that in the event that the customer choosesthe automatic renewal of the certificate with a quarterly return, its value will be renewed upon maturity for the certificate with a monthly return.
Aboul Fotouh attributed this step on the NBE’s part to the improvement in economic performance and the decrease in inflation levels. The bank’s step also aims to ensure that depositors cancontinue to maintain the highest return on their savings.
He highlightedthat the benefitsfound inthe variable-rate platinum certificate will continue, without modification.
The Monetary Policy Committee (MPC) at the Central Bank of Egypt (CBE) decided, last Thursday, to fix the basic interest rates at 8.25% for deposit, 9.25% for lending, and 8.75% for credit, debit, and the main operation.