Ahmed Kamel – Egypt Daily News
Following the Central Bank of Egypt’s (CBE) decision to cut key interest rates by 1% (100 basis points) during its October 2nd, 2025 meeting, Egyptian banks both public and private are now in the process of reassessing the returns offered on variable-yield savings certificates. These financial instruments, which are directly tied to monetary policy shifts, are among the most affected by such moves.
Why Did the Central Bank Cut Rates?
The CBE’s Monetary Policy Committee lowered:
- Overnight deposit rate to 21%
- Overnight lending rate to 22%
- Main operation rate to 21.5%
- Credit and discount rate to 21.5%
According to the committee, this decision reflects their updated outlook on inflation trends and aims to support economic activity while maintaining price stability a balancing act in a challenging economic environment.
Which Savings Certificates Are Affected?
The most impacted are variable-yield savings certificates typically issued for 3 to 5 years whose returns are adjusted according to CBE rate decisions. Among the top offerings currently under review are:
🏦 National Bank of Egypt (NBE) – Platinum Variable Certificate
- Term: 3 years
- Minimum Purchase: EGP 1,000
- Interest Rate: 22.25% (paid quarterly)
🏦 Banque Misr – Al Qimma Certificate
- Term: 3 years
- Minimum Purchase: EGP 1,000
- Interest Rate: 21.75% (paid daily)
🏦 Banque du Caire – Primo Certificate
- 3-year Term:
- 20.75% monthly
- 21.75% quarterly
- 5-year Term:
- 21.75% quarterly
🏦 National Bank of Kuwait – Egypt (NBK) – Variable Certificate
- 3-year Term:
- 22.75% monthly
- 23% quarterly
- 5-year Term:
- 22.25% monthly
- 22.5% quarterly
- 22.75% semi-annually
🏦 Suez Canal Bank – Variable Certificate
- Term: 3 years
- Interest Rate:
- 21.25% daily
- 21.75% monthly
🏦 Export Development Bank of Egypt (EBE) – Triple Variable Certificate
- Term: 3 years
- Interest Rate:
- 21.5% monthly
- 21.75% quarterly
🏦 Commercial International Bank (CIB) – Triple Variable Certificate
- Term: 3 years
- Interest Rate: 20.75% monthly
Will Banks Cut Rates Soon?
According to banking sources, most current certificates will not see immediate changes to their interest rates — especially not this week. The next CBE meeting, scheduled for November 20, could be a key moment for banks to adjust their savings products in line with broader monetary policy trends.
Major institutions like NBE and Banque Misr are expected to keep existing rates stable for now, especially for certificates already purchased.
How Much Can You Earn Monthly from EGP 100,000?
Here’s a rough breakdown of monthly returns on a three-year variable-yield certificate, assuming average market rates:
- Year 1: ~EGP 1,750/month
- Year 2: ~EGP 1,395.83/month
- Year 3: ~EGP 1,125/month
(These are approximations based on the expected decline in interest rates over time and do not account for tax or reinvestment.)
Final Thoughts
Egypt’s recent interest rate cut marks a strategic shift aimed at stimulating the economy amid signs of cooling inflation. While savers may worry about lower returns in the future, variable-rate certificates still offer some of the highest yields in the market today, especially when compared globally.
Investors and savers are advised to monitor developments closely ahead of the next CBE meeting, as banks may start to adjust their offerings more aggressively based on forward-looking inflation data and liquidity needs.
