NBE Unveils 2 New Dollar Savings Certificates with 7% and 9% Interest Rates for a 3-Year Maturity

National Bank of Egypt has announced the issuance of 2 new dollar-denominated savings certificates with annual interest rates of 7% and 9% for a 3-year Maturity.

This move comes in response to the customers' desires to direct their foreign currency savings towards investment opportunities in Egypt, by depositing them in a savings account with attractive returns that preserve and grow their savings while providing them with the necessary flexibility to manage their savings and earnings.

Additionally, the bank will start granting personal loans in EGP to Egyptians working abroad, with their salaries as a guarantee. The issuance of the 2 certificates and the loan guarantee will commence on Wednesday, July 26, 2023.

It's worth noting that NBE has previously collaborated with Misr Life Insurance to offer a pension product in Egyptian pounds, which has been successful in meeting the needs of many customers.

Furthermore, Misr Life Insurance and NBE are currently finalizing the technological requirements for introducing a new product for Egyptians residing abroad. All details regarding this product will be announced in a press conference at Financial Regulatory Authority during the coming week. This announcement follows the approval received from the authority in March 2023, after fulfilling all operational requirements in this regard.

The first dollar-denominated certificate, NBE Platinum Plus, has a Maturity of 3 years and offers a yearly interest rate of 7%, with quarterly interest payments in the same currency. Borrowing up to 50% of its value in EGP for investment purposes is permissible, with an interest rate 2.25% lower than the Central Bank of Egypt's lending rate.

The second dollar-denominated certificate, Al-Ahli Fawra, also has a Maturity of 3 years and offers a yearly interest rate of 9%, paid upfront in EGP, amounting to 27% of the certificate's total value over its entire duration. Borrowing against this certificate is not allowed, and it will be redeemed in U.S. dollars on the maturity date.

Both certificates are available in denominations of $1,000 and its multiples. The returns start accruing from the following working day after the purchase, and the certificates can be redeemed after a minimum of 6 months from the purchase date, following the established rules and the announced redemption schedule.

Customers can purchase these certificates starting from Wednesday, July 26, 2023, either at any bank branch or through Al-Ahli Net and Al-Ahli Mobile services. Additionally, they can use non-Egyptian-issued credit cards to make the purchase on the official website.

For non-bank customers, they can also make the purchase through accompanying bank transfers, specifying their national ID number and the desired product. The bank will announce the account numbers to which the transfers should be made on the bank's website, coinciding with the product launch and completing the required documentation at any bank branch or other announced channels.

Regarding loans with salary guarantees for Egyptians working abroad, Al-Ahli Bank will start offering personal loans, starting from Wednesday, July 26, 2023, with the guarantee of transferring the equivalent value of the installment in foreign currency from abroad.

The loan amounts range from a minimum of EGP50,000 to a maximum of EGP3 mn, and the repayment is to be done by relinquishing foreign currencies at the exchange rate announced at the time of repayment.

The interest rate is 2.25% lower than the Egyptian Central Bank's lending rate at the time of obtaining the loan, with a repayment period of up to 4 years and all terms and guarantees applicable, and without any administrative fees, along with providing the clients with free life insurance.

The required financing documents are available on the bank's website, and the customer must sign them at any bank branch or other announced channels. Further channels for this process will be announced soon.