Egyptians Weigh Savings Certificates vs. Gold as Investment options Amid Rate Shifts
Cairo, Egypt – As interest rates in Egypt adjust-recently decreasing by a total of 6.25% during 2025-citizens are actively evaluating investment strategies,notably balancing the security of bank savings certificates with the potential gains from gold. This comes as demand for gold has softened in recent days, coinciding with the availability of competitive certificate rates and the nearing expiration of existing investment products.
Many Egyptians are considering how to best allocate a 100,000 Egyptian pound investment over a three-year period. A common approach involves dividing the funds equally: 50,000 pounds into bank certificates and 50,000 pounds into gold purchases. This decision is driven by a desire to diversify portfolios and capitalize on both guaranteed returns and potential asset gratitude.
Currently, the National Bank of Egypt and Banque Misr offer the highest fixed-return savings certificates at 17% annually, for a term of 36 months. An investment of 50,000 pounds in such a certificate yields a monthly return of 708 pounds. These certificates provide a risk-free, predictable income stream, bolstering personal savings.
Alternatively, 50,000 pounds can be used to purchase approximately three gold bullion bars, each weighing 2.5 grams, at a current price of 16,000 pounds per bar.Market analysts anticipate a rise in gold prices due to increasing global demand, perhaps offering important returns over the three-year investment horizon.
For those considering one-year certificates, rates are generally lower than the three-year options, though specific offerings vary between banks. Investors should carefully compare terms and conditions before committing to a shorter-term investment.The choice between one-year and three-year certificates depends on individual liquidity needs and risk tolerance.
