FACTBOX: National Bank of Egypt new USD savings certificates
On July 26, Egypt’s largest state lender, the National Bank of Egypt (NBE) has issued two dollar-dominated three-year certificates of deposits, at very special rates between 7 – 9 percent.
To date, this is the highest interest rate on a foreign currency savings certificate to be offered 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.
Globally, the highest current CD rates as of July 31, 2023*:
| Bread Savings: 5.35% APY for 1-year CD (visit Bread Savings) |
| Quontic Bank: 5.30% APY for 1-year CD (visit Quontic Bank) |
| BMO Harris: 5.10% APY for 12 and 13-month CDs (visit BMO Harris) |
| CFG Bank: 5.05% APY for 1-year CD |
| Synchrony Bank: 5.05% APY for 9-month CD |
| Ally Bank: 5.00% APY for 9 and 18-month CDs |
| Barclays Online: 5.00% APY for 12-month CD |
| Bethpage Federal Credit Union: 5.00% APY for 1-year CD |
| Marcus by Goldman Sachs: 5.00% APY for 12-month CD |
| PenFed Credit Union: 4.90% APY for 15-month CD |
NBE’s Al-Ahly Plus Certificate
It is a dollar-dominated certificate at 7 percent rate annually.
Egyptians and Foreigners can purchase the certificate through a minimum of $1,000 minimum deposit and its multiples.
The return is paid quarterly in US dollars, with the possibility of taking out 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 less than the lending rate of the Central Bank of Egypt. The duration of the certificate is three years.
Banque Misr’s Al-Ahly Immediately Certificate
It is a dollar-dominated certificate at 9 percent rate annually. It pays its interest back in Egyptian pounds, while repaying the original investment in US dollars. The interest payment in Egyptian pounds is made up front, and includes all three years’ interest at 27 percent.
For example, if US$1000 (EGP 30,900) is invested in the Al Ahly Instant certificate, the Egyptian pound equivalent of US$270 (EGP 8,341) would be paid out instantly, and the US$1000 would be repaid at maturity, three years on.
Egyptians and Foreigners can purchase the certificate through a minimum of $1,000 minimum deposit and its multiples.
Both Certificates can be purchased through NBE’s branches or through Al-Ahly Net and Al-Ahly Mobile, as well as through the official website using credit cards that were not issued in Egypt. For NBE customers residing abroad and do not have accounts in foreign currency, they can transfer the amounts required to purchase the certificates, and the bank will open sub-accounts for them in foreign currency.
As for non-customers, they can also purchase the certificates through following the instructions accompanying bank transfers, indicating their ID number and the product to be purchased.
Meanwhile, Yehia Aboul Fotouh, Deputy Chairman at NBE, said any amount deposited in US dollars for the new certificates will be accepted without inquiry about their source.
