The Assets and Liabilities Committee (ALPCO) at Banque Misr has decided to maintain the return on all local currency saving and deposit certificates, including the El Tholatheya Certificate with a monthly return of 11%.
The move comes in light of a decision by the Monetary Policy Committee (MPC) at the Central Bank of Egypt (CBE) to keep the rate of deposit and lending at 8.25% and 9.25%, respectively. The MPC decision, taken last Thursday, will also see the CBE’s credit, discount, and main operation rates remain at 8.75%.
Meanwhile, Yahia Aboul Fotouh, Vice Chairperson of the National Bank of Egypt (NBE), confirmed that the bank will continue to issue its Platinum Certificate with a high yield of 11%.
In a statement to the MENA news agency, Aboul Fotouh said that high-yield platinum certificates with a term of up to three years are highly popular with customers.
He also said that the proceeds of various types of certificates have increased by more than EGP 230bn since 30 June 2020, which reflects the intensity of demand.
Moreover, the NBE has decided to add investment certificates Group A, B, and C normally, managed by the bank on behalf of the National Investment Bank (NIB), to the former’s saving vessels, but they will be introduced to the NBE’s name from now on, according to Aboul Fotouh.
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.
He explained that the saving vessels for individuals with a period of less than three years are subject to a legal reserve ratio of 14%, in accordance with the directives of the CBE.
Aboul Fotouh also affirmed that the NBE will keep renewing the A, B, and C certificates automatically for individuals in the same categories as one of the bank’s saving vessels. This will also be subject to the interest rates applied at the time, unless they are recovered or any new instructions were issued otherwise.
