CIB offers a new 22.5%-yield savings certificate following state-owned banks suit
The Commercial International Bank-Egypt (CIB) launched a new savings certificate for a period of one and a half years with a fixed return in EGP, at a return rate of 20%, disbursed monthly, and 22.50% disbursed upon maturity, with a minimum purchase of EGP 100,000 and multiples of EGP 1,000.
The certificate is available starting from 11 January 2023, in all branches and online, according to media reports
Egypt’s biggest state-owned banks, NBE and BM, issued new one-year maturity saving certificates with a 25 percent yield after one year, the highest yield on record, in an aim to contain rising inflation by encouraging savings.
The certificates are also available at a 22.5 percent yield for monthly disbursement.
Egyptians have so far poured some EGP 155 bn into the record high-yield 25% CDs released last week by the National Bank of Egypt (NBE) and Banque Misr, NBE Deputy Chairman Yehia Aboul Fotouh said.
Some EGP 105 bn went to the NBE, while Banque Misr took EGP 50 bn, he said, adding that subscriptions were evenly divided between fresh deposits and those who invested after withdrawing from other CDs with lower yields.
In December 2022, the Monetary Policy Committee (MPC) raised the Central Bank of Egypt’s (CBE) deposit rate, overnight lending rate, and the rate of the main operation by 300 basis points (bps) to 16.25%, 17.25%, and 16.75%, respectively. The discount rate was also raised by 300 bps to 16.75%.
