The National Bank of Egypt (NBE) has decided to add investment certificates, managed by the bank on behalf of the National Investment Bank (NIB), to the former’s saving vessels, according to Deputy Chairperson of the NBE Yehia Aboul Fotouh.
Speaking exclusively to Daily News Egypt, Aboul Fotouh said that his bank will continue issuing the NIB’s investment certificates Group A, B, and C normally, but they will be introduced to the NBE’s name from now on.
The net sales of these certificates until the end of December 2020 stood at about EGP 435bn, compared to about EGP 155m in December 1972.
In 1964, the NBE began studying the systems of savings and investment certificates, and in January 1965 a system of investment certificates was introduced for the first time in Egypt.
Under law No 8 of 1965, issued by the President on 31 March 1965, the bank was entrusted to issue these certificates, on behalf of the Ministry of Finance.
This contributed to supporting savings awareness among Egyptians, and financed the development plan on terms determined by the Ministry of Economy and Foreign Trade. These terms were based on the proposal of the NBE’s Board of Directors at the time.
On 26 June 1980, Law No 119 of 1980 was issued regarding the establishment of the NIB, and the NBE began to issue investment certificates on behalf of the former, a role that the NBE has been playing until now.
The Group (A) certificate, with 10-year term, offers an accumulated return after maturity at the rate of 9.5% annually, while the Group (B) certificate presents periodical return.
The Group (B) certificate has various terms; one year certificates with an annual return of 6%, certificates of two years with an annual return of 6.5%, and three years with an annual return of 9%.
As for the Group (C) lottery certificate, its term reaches 10 years renewed automatically for another 10 years. Clients whose savings are limited to these vessels are exempted from all account opening fees as well as annual expenses. They are only obligated to pay the value of the minimum savings amounting to EGP 500 for each type of these certificates.