Following the Central Bank of Egypt (CBE)’s decision to raise its key interest rates by 6% in an extraordinary meeting of the Monetary Policy Committee (MPC) on Wednesday, the National Bank of Egypt (NBE) and Banque Misr announced the issuance of new three-year savings certificates with a return of up to 30%.
NBE issued a new three-year savings certificate with a decreasing interest rate that equals an annual rate of 30% for the first year, 25% for the second year, and 20% for the third year. The return is paid annually.
The bank also decided to revise the interest rate on the triple platinum certificate with diminishing returns to 26% for the first year, 22% for the second year, and 18% for the third year for new issues, starting from Wednesday. The return on this certificate is paid monthly.
The interest rate on the three-year platinum certificate with a fixed return was also adjusted to 21.5% annually for new issues starting from Wednesday, and the interest on it is paid monthly.
The bank fixed the interest rate on platinum certificates for one year with an annual return of 27%, payable at the end of the period, and 23.5%, with the return paid monthly. It also added a new option of daily interest payment, with an annual return rate of 23%.
Similarly, Banque Misr decided to re-issue the “Ibn Misr” savings certificate for three years with a decreasing interest rate, with various options for return payment periods, to cater to the needs of customers. Accordingly, three options for interest payment periods were approved, which are annual, quarterly, and monthly.
The annual returns are 30% for the first year, 25% for the second, and 20% for the third. The returns with a quarterly payment period are 27% for the first year, 23% for the second, and 19% for the third year. The returns with a monthly payment period are 26% for the first year, 22.5% for the second, and 19% for the third, for new issues as of Wednesday.
The bank also amended the return rate on the three-year “Al-Qimma” certificate with a fixed return, making it 21.5% annually for new issues today instead of 19%, with the monthly interest payment period. It continues to issue the Talaat Harb certificate for one year with an annual return of 27%, payable at the end of the period, and 23.5%, with the return paid monthly.
The denominations of certificates at NBE and Banque Misr start at EGP 1,000 and multiples thereof and are issued to natural persons or minors, whether Egyptian or foreign.
The duration is calculated from the working day following the purchase. Certificates can be purchased starting from Wednesday, through the Internet, mobile banking, BM Online, and ATMs. Customers can also buy certificates from any branch of the two banks. Customers can also borrow with the certificate as collateral or have credit cards issued.
The certificate can be redeemed after six months, starting from the working day following the date of purchase, under the redemption rules and the regulated terms and conditions.
The interest rates on variable-return certificates and some loan products that are tied to the CBE’s basic interest rates rose automatically after the CBE decided to hike its rates by an unprecedented 6% this morning.
The market is also anticipating the impact of the CBE’s decision to raise interest rates by 6% on Wednesday morning, in an extraordinary meeting of the MPC, on the yield of government debt instruments.
On Thursday, the CBE will auction two treasury bills worth EGP 60bn on behalf of the Ministry of Finance. The first one has a value of EGP 30bn and a maturity of 182 days, and the second one has the same value and a maturity of 364 days.
