National Bank of Egypt increases yield on Platinum certificates

The National Bank of Egypt (NBE) has decided to raise the annual yield on its fixed-rate Platinum certificates of deposits.

The rate is now 18.75 percent for certificates with monthly interest payouts, and 18.85 percent for those with quarterly payouts – an increase of one percentage point for each, up from the previous rates of 17.75 percent and 17.85 percent respectively.

The CEO of the NBE, Mohamed al-Etreby, announced that the bank’s Asset and Liability Committee (ALCO) approved the adjustment to the interest rates on these certificates.

They are available to customers through all NBE branches and the bank’s digital applications, effective Sunday, November 8, he said.

Yield Rates

The increase applies to two types of Platinum fixed-yield certificates, which differ in the frequency of interest payouts.

The yield on the Platinum certificate with monthly interest payouts has increased from 17.75 percent to 18.75 percent, while the yield on the Platinum Certificate with quarterly interest payouts has risen from 17.85 percent to 18.85 percent.

Consequently, the annual yield for the certificate with monthly interest payouts has risen to 18.75 percent, while the certificate with quarterly interest payouts now offers 18.85 percent—a difference of 0.10 percentage points.

Return on LE 100,000

Calculating the return on an investment of LE 100,000 illustrates the difference between the two certificates, based on the announced annual rates:

• Platinum certificate with monthly returns: The annual return is LE 18,750, equivalent to LE 1,562.50 per month.
• Platinum certificate with quarterly returns: The annual return is LE 18,850, equivalent to LE 4,712.50 every three months.

These calculations show that a certificate with a quarterly payout frequency offers an annual return that is LE 100 higher for every LE 100,000 invested, whereas a certificate with a monthly payout frequency allows for more regular receipt of returns throughout the year.

Interest Rate Hikes

The adjustment to the yields on “Platinum” certificates follows a decision by the Central Bank of Egypt’s Monetary Policy Committee to raise key interest rates by 100 basis points during its meeting on Thursday, October 29.

The CBE’s decision included raising the overnight deposit rate to 20 percent, the lending rate to 21 percent, and the main operation rate to 20.5 percent.

Additionally, the discount rate was increased to 20.5 percent.