Ahli United Bank launches an 18%-yield savings certificate

Ahli United Bank (AUB Egypt) revealed that it is issuing a new three-year savings certificate with an annual interest rate of up to 18% following state-run banks and private banks suit in launching record high savings certificates

The bank provided a variety of returns to meet the clients’ different needs, according to a statement.

Besides the annual return, the lender offered a 17.25% monthly rate of return, in addition to options for quarterly and semi-annually with a return of 17.50% and 17.65%, respectively.

Furthermore, clients of AUB Egypt can obtain a loan with a lending rate of up to 95% of the nominal value of the certificate as a guarantee.

However, the Cairo-based lender settled the minimum purchase price for the certificate at EGP 5,000.

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.

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%.