07:46 PM
Monday, March 20, 2023
I wrote – Manal Al-Masry:
With the first maturity of the certificate approaching 18% the day after tomorrow, Wednesday, Al-Ahly Bank and Egypt have not yet decided to issue a certificate with a higher return than the one currently offered to re-absorb its proceeds again.
The highest interest rate offered on certificates in Al-Ahly Bank and Egypt is a 3-year certificate with an annual interest rate of 16%, the return is paid monthly, 16.25% is paid quarterly, 16.5% is paid semi-annually, and 17.25% is paid annually.
Mohamed Abdel-Aal, a banking expert, told Masrawy that issuing a high-yield certificate in Al-Ahly Bank and Egypt is likely not required at the present time, in order to mitigate the effects of the high cost on the two banks after offering a certificate of up to 25% last January, which was suspended by the end of January. The same month after absorption, a high volume of liquidity.
Al-Ahly Bank and Egypt had offered a one-year certificate with an interest rate of 22.5%, the return is paid monthly, and 25% at the end of maturity during the period from last January 4 until the end of January 31 transactions, after collecting savings of about 500 billion pounds within 28 days.
Abdel-Aal explained that private banks are currently offering certificates at a high interest rate, allowing customers the freedom to reinvest their savings in other banks or return the migrated funds from the certificate at 18% to their accounts in their previous banks.
The certificate, with a high return of 18%, at the time of its issuance, caused some clients to break their certificates in competing banks to reinvest them in Al-Ahly and Egypt Banks to benefit from its high return.
Some public and private banks are currently competing to provide savings certificates with high interest rates of up to 18% and 22%, which contributes to increasing customers’ options to reinvest their money in the bank, which it believes provides the most suitable investment tool for it.
Nasser Social Bank had recently offered 4 types of savings certificates provided to individuals at a return rate between 19% to 22% annually, according to the terms of each certificate and the periodicity of its return exchange, according to what the bank announced on its website.
The maturity of the certificate for one year at an annual interest rate of 18%, which was offered by the National Bank of Egypt and Egypt last year, begins next Wednesday and continues until the beginning of next June, a year after the first subscription in the certificate.
The high-yield certificate at Al-Ahly Bank and Egypt Bank collected savings of EGP 750 billion within 71 days of issuing it to customers, after achieving the target of its issuance, according to a statement issued by the two banks earlier last year.
The two banks will transfer the value of the certificate upon maturity to the customer’s account, but in the event of a reservation on it with the guarantee of a loan included in the certificate, it will be renewed with the triple certificate with a high return.
The National Bank of Egypt and Egypt issued the certificate with a return of 18% on March 21, 2022, with a decrease in the exchange rate of the pound against the dollar – the liberalization of the exchange rate – after the stability of about two years, in order to absorb the inflationary pressures resulting from the depreciation of the pound and the rise in global prices due to the negative consequences of the Russian-Ukrainian war.
Also read:
Interest rates on certificates in some banks are higher than Al-Ahly and Egypt.. Get to know them
From one thousand pounds.. Details of the certificate with the highest return in the Egyptian banking market
