The launch of the "Citizen Bond" through Egypt Post offices has raised many questions about the actual return citizens will receive in hand.

Because numbers speak most truthfully, Banky presents a precise, comprehensive calculation for every investment bracket, so you can set your budget before heading to the post office.

The basis of the calculation (for illustration):

  • Advertised interest rate: 17.75% a year.

Returns table (your pocket map):

10,000 EGP1,775 EGP148 EGP
20,000 EGP3,550 EGP296 EGP
50,000 EGP8,875 EGP740 EGP
100,000 EGP17,750 EGP1,479 EGP
200,000 EGP35,500 EGP2,958 EGP
300,000 EGP53,250 EGP4,438 EGP
500,000 EGP88,750 EGP7,396 EGP
750,000 EGP133,125 EGP11,094 EGP
1,000,000 EGP177,500 EGP14,792 EGP

Important notes for investors:

  1. Bond tenor: the returns shown above continue for 18 months (a year and a half).

  2. Payout timing: the first return is paid one full month after the bond's purchase date.

  3. Repayment of principal: after the 18 months end, the full "principal" is returned to your account with no tax deductions on it.

The bottom line:

If you are looking for an investment that gives you EGP 14,792 a month as guaranteed extra income, investing EGP 1 million in the "Citizen Bond" is an ideal option that combines a competitive return with the highest level of government-backed security.