The Asset-Liability Committee (ALCO) in Banque Misr decided on Monday to raise the interest rates on customers’ deposits by 1%, and raise the yield on savings accounts by 0.75%, after the decision by the Central Bank of Egypt (CBE) on Thursday to increase the prices of the basic yield by 1%.
According to an official in Banque Misr, the interest rate on deposits in the bank surged to 8.375% for monthly deposits, 8.625% for quarterly deposits, 9.375% for semi-annual deposits, 9.875% for one and two year deposits, and 10.625% for deposits with three, five or seven year terms.
The source added that those prices apply to the lowest segment of the bank deposits, which range between EGP 1 and EGP 500,000. The interest rates increase on the higher deposits, depending on the segments set by the bank.
In regard to the yield on the savings accounts, the source said that it amounted to 9.25% for annual yield accounts, 9.125% for semi-annual accounts, 9% for quarterly yield, and 8.75% for monthly yield.
The National Bank of Egypt (NBE) raised the interest rate by 1% on saving accounts and 0.75% on deposits on Sunday.
Other public and private banks are considering taking similar decisions over the coming period.
