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CIB introduces high-yield deposit certificates amid market competition

EditorNatashya Angelica
Published 22/01/2024, 09:30
Updated 22/01/2024, 09:30
© Reuters.

CAIRO - Commercial International Bank (CIB), one of Egypt's leading financial institutions, has unveiled a new series of deposit certificates with attractive monthly interest rates in a move to enhance its deposit base and compete in a market where high inflation is driving similar actions from other banks. Today, CIB announced the introduction of new deposit certificates offering up to 22% monthly interest for deposits of five million Egyptian pounds (EGP) and above.

The bank's aggressive interest rate strategy also includes three-year certificates with a 21% monthly interest rate for deposits starting at one million EGP. Additionally, CIB is catering to a broader customer base by offering certificates with a 20% monthly rate for deposits beginning at one hundred thousand EGP.

This announcement comes in the wake of other major Egyptian banks issuing high-yield certificates of deposit (CDs) with annual yields reaching up to twenty-seven percent. Notably, the National Bank of Egypt (NBE) and Banque Misr were among the first to issue such high-yield CDs, signaling a trend among financial institutions to attract deposits amidst the country's soaring inflation rates.

Other banks, including Housing and Development Bank (HDB), Al-Baraka Bank, and EGBank, have also launched competitive CDs. These financial products are part of a broader strategy to manage cash liquidity effectively while offering customers a hedge against the eroding purchasing power due to inflation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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