The United Bank offers its traditional 3-year certificate in Egyptian pounds at a floating interest rate of up to 19.50% a year paid monthly, or 19% a year paid daily. The rate has a floor of 17.50% for monthly payout and 17% for daily payout, subject to the certificate's terms.

The certificate has a tenor of 3 years and a minimum purchase of EGP 5,000. Customers can choose the payout frequency that suits their needs, receiving interest either daily or monthly.

Details of The United Bank's traditional 3-year certificate

  • Certificate name: Traditional 3-year certificate.

  • Tenor: 3 years.

  • Monthly payout interest rate: 19.50% a year, with a minimum of 17.50%.

  • Daily payout interest rate: 19% a year, with a minimum of 17%.

  • Payout frequency: daily or monthly.

  • Minimum purchase: EGP 5,000.

  • Denomination: multiples of EGP 1,000.

  • Currency: Egyptian pound.

  • Target customers: individuals only.

  • Early redemption: the certificate can be redeemed 6 months after the purchase date, according to the bank's approved redemption schedule.

  • Borrowing: loans can be taken against the certificate in line with the bank's credit policy.

Worked example: investing EGP 500,000 in The United Bank's 3-year certificate

When EGP 500,000 is invested in The United Bank's traditional 3-year certificate, the return varies with the chosen payout frequency, as follows:

1. Monthly payout

  • Certificate value: EGP 500,000.

  • Annual interest rate: 19.50%.

  • Annual return: EGP 97,500.

  • Monthly return: EGP 8,125.

2. Daily payout

  • Certificate value: EGP 500,000.

  • Annual interest rate: 19%.

  • Annual return: EGP 95,000.

  • Average daily return: about EGP 260.27, assuming interest is calculated on a 365-day basis.

Note: these calculations are illustrative and assume the interest rate stays at the stated levels throughout the calculation period. Because the rate is floating, the actual return may differ as the rate applied by the bank changes.