With customers increasingly keen to save in US dollars and earn a fixed periodic income, the Housing & Development Bank (HDB) USD Golden certificate stands out as a savings option offering a fixed return for 3 years with a choice of payout frequencies to suit customers' needs. The certificate can deliver a return of more than USD 1000 every quarter on an investment of USD 100,000, making it suitable for those who want regular foreign-currency cash flows while preserving the value of their savings.

HDB's USD Golden certificate

  • Interest rate and payout frequency:

    • Monthly: 3.85%

    • Quarterly: 4.05%

  • Minimum purchase: USD 1000, in multiples of USD 1000.

  • Certificate tenor: 3 years

How to calculate it

If you save USD 100,000 in HDB's USD Golden certificate, you will receive:

Monthly payout at 3.85%:

  • Annual return: 100,000 * 3.85% = USD 3850

  • Monthly return: 3850 ÷ 12 = USD 320.8 a month

  • Equivalent to 320.8 * 50.25 = EGP 16120 a month

Quarterly payout at 4.05%:

  • Annual return: 100,000 * 4.05% = USD 4050

  • Quarterly return: 4050 ÷ 4 = USD 1012.5 a month

  • Equivalent to 1012.5 * 50.25 = EGP 50878 every 3 months

Features of HDB's USD Golden certificate

  • The certificate is for individuals.

  • The certificate has a three-year tenor with a fixed interest rate throughout.

  • The certificate is issued in US dollars.

  • It takes effect the day after purchase and renews automatically unless the customer states that they do not wish to renew.

  • Interest is calculated from the effective date.

  • Early redemption is possible after 6 months at the following rates:

    • After 6 months: 2%

    • Second year: 1.5%

    • Third year: 1.25%

Banky's view:

HDB's USD Golden certificate is a good option for customers looking for a fixed US-dollar return insulated from interest-rate swings, especially with the choice of monthly or quarterly payouts. It also offers flexibility, as it can be redeemed after 6 months from the purchase date under the announced terms, which adds to its appeal for holders of surplus dollars who want a regular periodic income with a good level of security.