Banks offer customers a wide range of savings certificates with different profit rates, tenors, payout frequencies and minimum amounts, which makes comparing savings products an important step in choosing the certificate that fits each customer's needs.

In this report, we review the key details of the monthly-payout Al Nokhba certificate from Kuwait Finance House (KFH) Egypt and the Al Baraka Platinum certificate from Al Baraka Bank Egypt, setting out the profit rate and the terms for purchase, redemption and financing.

Al Nokhba certificate from Kuwait Finance House (KFH) Egypt

  • Profit rate: 19.75% a year, paid monthly.

  • Rate type: floating

  • Tenor: 3 years.

  • Minimum to open the certificate: EGP 50,000.

  • Denomination: EGP 10,000 and multiples thereof.

  • Profit starts accruing from the day after the certificate is issued.

  • The certificate cannot be redeemed until 6 months after the issue date, and the early redemption penalty applies.

  • Financing of up to 95% of the certificate's value is available.

  • The certificate is available to individuals only

Al Baraka Platinum certificate from Al Baraka Bank Egypt

  • Profit rate: 18.5% a year, paid monthly.

  • Rate type: floating

  • Tenor: 3 years.

  • Minimum purchase: EGP 1,000 and multiples thereof.

  • A credit card and financing are available against the certificate.

  • The certificate can be applied for through internet banking.

  • Profits can be withdrawn with a debit card from the bank's ATMs, 24 hours a day

Banky's view

The comparison shows that the Al Nokhba certificate offers a floating profit rate of 19.75% a year, against a floating 18.5% a year for the Al Baraka Platinum certificate, with the two products differing in their minimum purchase amount.

On a deposit of EGP 500,000, the approximate annual profit at the announced rate is about EGP 98,750 for the Al Nokhba certificate, against EGP 92,500 for the Al Baraka Platinum certificate, a difference of about EGP 6,250 a year.

With monthly payouts, the customer receives about EGP 8,229 a month from the Al Nokhba certificate, against about EGP 7,708 a month from the Al Baraka Platinum certificate, a difference of about EGP 521 a month.

Over 3 years, on a simple calculation that does not account for reinvesting the profit, total profit on EGP 500,000 comes to about EGP 296,250 for the Al Nokhba certificate, against EGP 277,500 for the Al Baraka Platinum certificate, a total difference of about EGP 18,750