Savers look for the best ways to invest their money and earn a regular return while keeping their liquidity flexible. The options available to customers range across certificates, time deposits and savings accounts, depending on the investment term and payout frequency.

Bank NXT offers a range of savings products that differ in interest rates and investment terms, letting customers choose the product that suits their needs. In this report, Banky reviews Bank NXT's main savings products and calculates the return on investing EGP 1 million in each, based on the announced interest rates.

1- Savings certificates

Bank NXT's NXT Edge certificate

Bank NXT offers the 3-year NXT Edge certificate with a floating interest rate and a choice of monthly or quarterly payout. The rate currently reaches 19.5% a year with monthly payout and 20% a year with quarterly payout.

Certificate details

  • Available to individuals (natural persons) only.

  • Currency: Egyptian pound (EGP).

  • Tenor: 3 years.

  • Minimum to issue the certificate: EGP 50,000, in multiples of EGP 1,000.

  • Floating interest rate with a guaranteed minimum rate.

  • Loans can be taken against the certificate for up to 95% of its value.

  • The certificate can be redeemed 6 months after the issue date, subject to the redemption rules.

Interest rates

  • With monthly payout:

    • The CBE's announced deposit rate + 0.5%.

    • With a minimum of 17.75% a year.

  • With quarterly payout:

    • The CBE's announced deposit rate + 1%.

    • With a minimum of 17.75% a year.

Worked example: investing EGP 1 million

Investing EGP 1 million in the NXT Edge certificate yields the following at the stated rates:

  • Monthly payout: an annual return of about EGP 195,000, equivalent to EGP 16,250 a month.

  • Quarterly payout: an annual return of about EGP 200,000, equivalent to EGP 50,000 every 3 months.

The return a customer earns on EGP 1 million therefore varies with the payout frequency chosen.

2- Time deposits

1-month EGP time deposits with interest paid upfront

The highest interest rate on Bank NXT's upfront-interest deposits reaches 14.75% a year for a 1-month deposit.

Deposit details

  • Tenor: 1 month.

  • Minimum deposit: EGP 500,000.

  • Currency: Egyptian pound (EGP).

  • Payout frequency: upfront.

Interest rate

  • 14.75% a year.

Worked example: investing EGP 1 million

Placing EGP 1 million in the 1-month deposit at the annual rate of 14.75% gives a return of about EGP 147,500 on an annualized basis.

For the deposit's 1-month tenor, the interest paid upfront comes to about EGP 12,292 for the month.

3- Savings accounts

Bank NXT's Tawfeer Plus Monthly savings account

Bank NXT offers the Tawfeer Plus Monthly savings account, with interest paid monthly according to balance tiers. The top rate reaches 18% a year for the highest balance tier.

Account details

  • Available to individuals only.

  • Currency: Egyptian pound (EGP).

  • Minimum to open the account: EGP 5,000.

  • Payout frequency: monthly.

  • Interest is credited to the account monthly based on the lowest balance during the month.

  • Cash withdrawals and balance inquiries through the ATM network.

  • The debit card can be used locally.

Interest rates

  • Below EGP 50,000: 0%.

  • From EGP 50,000 to EGP 500,000: 13%.

  • From EGP 500,000 to EGP 5 million: 16.5%.

  • From EGP 5 million to EGP 20 million: 17%.

  • Above EGP 20 million: 18%.

Worked example: investing EGP 1 million

Depositing EGP 1 million in the Tawfeer Plus Monthly savings account places the balance in the EGP 500,000 to EGP 5 million tier, which earns 16.5% a year.

The annual return on EGP 1 million is therefore about EGP 165,000, or roughly EGP 13,750 a month, assuming the balance stays constant and the announced rate applies.