A week after the Central Bank of Egypt (CBE) raised its basic interest rates by 2%, only a few banks have followed suit, according to Daily News Egypt. The National Bank of Egypt (NBE) and Banque Misr were the first to increase their interest rates, followed by some private banks.
The Monetary Policy Committee (MPC) of CBE decided on Thursday evening to set the interest rates at 21.25% for deposits, 22.25% for lending, and 21.75% for the credit and discount rates and the main operation of CBE.
As a result, the interest rates on variable-return certificates and some loan products that are linked to CBE’s basic interest rates automatically rose by 2%.
There are many variable-return savings certificates in the Egyptian market, such as the NBE’s “platinum” certificate and the “Al-Qimma” certificate issued by Banque Misr. There are also a large number of variable-return loan products.
National Bank of Egypt
NBE decided to raise the interest rate by 1.5% on customer deposits with maturities ranging from one week to seven years.
The interest on deposits increased as follows: from one week to 15 days: 7.50%; from 15 days to less than a month: 7.50%; from one month to less than three months: 9%; from three months to less than one year: 9.50%; from one year to less than three years: 10%; from three years to less than five years: 9.50%; and from five to seven years or more: 9.25%.
The bank also raised the return on the “Ahli Daily” account to 17%, calculated and added daily. The minimum amount for opening the account and earning the return is EGP 500,000.
The interest rate on the balance varies depending on the amount: from EGP 500,000 to EGP 2m: 6%; more than EGP 2m and up to EGP 5m: 9%; more than EGP 5m and up to EGP 10m: 15%; more than EGP 10m to EGP 20m: 16%; and more than EGP 20m: 17%.
The holders of these accounts can get a checkbook, a direct debit card, a joint account, and an electronic statement of accounts through the AlAhli Net or AlAhli Mobile service for individuals.
The administrative expenses for the account are EGP 400 annually, deducted as EGP 100 every three months. The paper statement expenses are EGP 75 per statement.
The account can be opened from traditional or electronic bank branches, through AlAhli Net or AlAhli Mobile.
NBE also raised the return on investment certificates of all types from Group A and B for one year, two years, three years, and 10 years.
The return on certificates increased as follows: Certificate “A” for 10 years: 12%; Certificate “B” for one year: 12%; Certificate “B” for two years: 12.50%; and Certificate “B” for three years: 15%.
The minimum amount for buying certificates is EGP 500. All certificates are nominal and cannot be traded, endorsed, transferred, deducted, mortgaged to anyone other than the bank, or disposed of in any way that changes ownership.
Banque Misr
Banque Misr increased the return on the current account with a daily return of 2%, setting the lowest return at 13% and the highest at 15.125%.
The return varies depending on the account value: from EGP 50,000 to EGP 100,000: 13%; more than EGP 100,000 to EGP 500,000: 13.25%; more than EGP 500,000 to less than EGP 1m: 13.50%; from EGP 1m to less than EGP 2m: 14%; from EGP 2m to less than EGP 10m: 14.25%; from EGP 10m to less than EGP 30m: 14.75%; from EGP 30m to less than EGP 100m: 15%; and more than EGP 100m: 15.125%.
Banque Misr requires a valid copy of the national ID card to open an account and the original ID card for verification. An account can also be opened for others with an official power of attorney that allows opening the account at the bank, after the approval of the relevant administration. Only deposits are accepted into the account.
The bank also issues checkbooks for convenience and allows all banking transactions through its branches across the country.
Banque Misr also raised the interest on the current account of pensioners with a monthly return of 2% to 16%, from 14%.
The bank offers this account to pensioners with a minimum of EGP 1,000 or more and a monthly disbursement period.
The bank issues checkbooks to account holders for convenience and allows all banking transactions through its branches across the country.
The bank also waives the administrative expenses and allows using the account through ATMs. It also enables inquiring about accounts and performing most banking transactions for free through the Internet banking service and the mobile phone app provided by the bank.
Banque du Caire
Banque du Caire decided to raise the return on the “Mega Savings” savings account to 25%. It is an account for individuals only and in the local currency.
The minimum amount to open an account is EGP 1,500, and the minimum amount to earn the return is EGP 50,000.
The interest is added to the customer’s account according to the interest disbursement period, whether monthly, quarterly, or annually.
The bank issues a free credit card and debit card for the first time only. The account also provides free life insurance coverage from the age of 18 years until the age of 65 years. The amount of insurance coverage is EGP 50,000 from EGP 50,000 to less than EGP 1m, and EGP 200,000 from EGP 1m and above.
The return varies depending on the amount: from EGP 50,000 to less than EGP 1m: 14% monthly, 15% quarterly, and 16% annually; and from EGP 1m to less than EGP 10m: 16% monthly, 17% quarterly, and 18% annually.
Saib Bank
Saib Bank has launched the “Saitara Plus” savings account in Egyptian pounds for individual customers. It offers a return of up to 24% annually, which is the highest in the Egyptian banking market.
This new account meets the customers’ desire for safe investment opportunities, with the flexibility to manage their money.
To open an account, the minimum amount is EGP 10,000. The interest is calculated on the lowest balance during the month, with a minimum of EGP 15,000 (depending on the segment).
The required documents are proof of identity, a birth certificate with a national ID number for a minor, a recent receipt with the current address, and the client’s birth certificate if born outside Egypt.
AAIB
AAIB has introduced a new savings account, “E-Golden Saving,” with a return of up to 25%.
The account is in Egyptian pounds and can be opened only through the mobile phone app, starting from February 20. The minimum amount is EGP 500,000.
The deposits are accepted only from other savings or current accounts within the bank.
The interest is based on the balance on the last day of the month. For example, the interest for April is based on the balance on March 31.
The return is also based on the lowest balance in the account, which must be at least EGP 500,000 throughout the month. The transfers are allowed on any day except the first day of each month.
The return is paid periodically (quarterly, semi-annually, annually) according to the opening date of the account. The monthly return is 21%, the quarterly return is 22%, the semi-annual is 23%, and the annual return is 25%.
New customers need to visit the nearest branch of the bank and open any savings or current account with a minimum of EGP 20,000 to receive transfers from other banks. Then, they need to download and activate the mobile phone app and open the E-Golden Saving account by transferring at least EGP 500,000 from another account. The opening fee for each account is EGP 50.
