Short-term bank deposits are a preferred option for some customers looking to invest their money for short periods, especially one-month deposits, which pay a return at maturity and allow the amount to be reinvested once the deposit ends.

Many customers want to know how to calculate interest on a one-month deposit, to work out the return they can earn based on the amount invested and the interest rate the bank advertises.

In this report, Banky explains how to calculate the return on a 30-day deposit using a simple formula and worked examples, and reviews the details of the highest-paying conventional monthly deposit, available at The United Bank, whose annual rate reaches 17%.

How do you calculate interest on a one-month deposit?

The return due on a one-month deposit can be calculated with a simple formula based on 3 elements: the amount deposited, the annual interest rate and the number of days in the deposit.

The formula is:

  • Deposit amount × annual interest rate = annual return ÷ 12 = monthly return

This lets the customer know the expected return at the end of the deposit's tenor, bearing in mind that the day-count method may differ depending on the bank's terms.

Customers can also use Banky's deposit calculator to easily find the expected return on their savings by entering the deposit amount, interest rate and tenor.

Highest monthly deposit at banks

The United Bank offers a tiered conventional monthly deposit with a 30-day tenor, with the interest rate varying by the amount invested. The highest rate reaches 17% a year.

Details of The United Bank tiered conventional monthly deposit

  • Deposit name: tiered conventional monthly deposit.

  • Annual interest rate: from 13% to 17%.

  • Tenor: 30 days.

  • Payout frequency: at maturity.

  • Minimum deposit: EGP 100,000.

  • Deposit amount: from EGP 100,000 up to EGP 150 million and above.

  • Currency: Egyptian pound (EGP).

  • Eligibility: individuals and legal entities.

  • Borrowing against the deposit: available in line with the bank's credit policy.

Interest rates on The United Bank monthly deposit

The annual interest rate on the deposit varies by tier of the amount invested, as follows:

  • EGP 100,000 to less than EGP 500,000: 13%.

  • EGP 500,000 to less than EGP 1 million: 14.75%.

  • EGP 1 million to less than EGP 3 million: 15%.

  • EGP 3 million to less than EGP 5 million: 15.50%.

  • EGP 5 million to less than EGP 10 million: 16%.

  • EGP 10 million to less than EGP 20 million: 16%.

  • EGP 20 million to less than EGP 40 million: 16.25%.

  • EGP 40 million to less than EGP 75 million: 16.50%.

  • EGP 75 million to less than EGP 150 million: 16.75%.

  • EGP 150 million and above: 17%.

The highest annual rate on The United Bank monthly deposit is therefore 17%, for customers depositing EGP 150 million or more, while the rate starts at 13% for deposits from EGP 100,000.

Worked example: the return on EGP 1 million in The United Bank monthly deposit

If a customer places a deposit of EGP 1 million for 30 days at The United Bank, they earn an annual rate of 15%, under the tier running from EGP 1 million to less than EGP 3 million.

The return is calculated as follows:

  • Deposit amount: EGP 1,000,000.

  • Annual interest rate: 15%.

  • Deposit tenor: 30 days.

  • Return over 30 days: approximately EGP 12500.

The return is paid to the customer at the end of the deposit's tenor, according to the bank's terms, meaning the customer earns an estimated return of about EGP 12.3 thousand on savings of EGP 1 million in one month.