Egypt new ‘highest interest ever’ dollar savings certificate

Egypt new ‘highest interest ever’ dollar savings certificate

Egypt’s two biggest state banks, the National Bank of Egypt (NBE) and Banque Misr have on July 26 issued two dollar-dominated three-year certificates of deposits, at very special rates between 7 – 9 percent.

Quick facts

- These certificates are valid for three years and available to both Egyptian nationals or foreigners with a minimum deposit of $1000.

- This is the highest interest rate on a foreign currency savings certificate to be offered ever by the Egyptian banking system since the early 1990s.

- Regionally and globally, other banks are currently offering rates of around 5 percent on dollar savings certificates, e.g., Barclays and Marcus by Goldman Sach.

The 7-Percent Certificates

The annual 7 percent return on the ‘Al Ahly Plus in Dollars’ and ‘Elite’ Certificates is paid out on quarterly basis in US dollars, with the possibility of getting a loan of up to 50 percent of the value of the investment.

According to NBE, the loan would be at an interest rate of 2.25 percent, which is less than the lending rate of the Central Bank of Egypt (CBE). The duration of these certificate is three years.

The 9-Percent Certificates

As for the 9 percent ‘Al Ahly Instant in Dollars’ and ‘Al Qimma’ Certificates, they pay