Egyptian banks offer savings certificates with returns up to 40%

Egyptian banks are competing to attract customer deposits by offering various savings certificates, including options with upfront interest payments. These products allow investors to receive the total interest for the entire term immediately upon purchase, providing instant liquidity while the principal remains invested.

Leading the market for upfront returns is United Bank, which offers a 3-year certificate with a 40% upfront return on a minimum investment of 5,000 EGP. Emirates NBD provides a 3-year certificate with a 37.5% upfront return (equivalent to a 16.96% annual cumulative rate) with a minimum purchase of 100,000 EGP. Arab African International Bank offers a 3-year certificate with a 35% upfront return (equivalent to a 15.44% annual cumulative rate) starting from 1,000 EGP.

In a separate segment of the market, Banque Misr offers a variety of fixed and variable rate certificates. These include the ‘Al Qemma’ certificates with monthly or quarterly fixed returns, declining interest certificates known as ‘Ibn Misr’, and daily variable rate certificates reaching up to 19%. These offerings come amid anticipation regarding upcoming monetary policy decisions by the Central Bank of Egypt.