Banks operating in Egypt offer US dollar savings certificates with fixed returns that vary from bank to bank by interest rate, payout frequency and minimum purchase. The fixed-rate dollar certificate from Suez Canal Bank and the fixed-rate dollar certificate from Export Development Bank of Egypt (EBE) are among the options available to customers who want to save in dollars.

Below is a comparison of the two certificates for a 3-year tenor, with interest paid every 3 months.

First: Suez Canal Bank's dollar certificate

Suez Canal Bank offers a 3-year fixed-rate dollar investment certificate, with a choice of payout frequencies, including quarterly.

Certificate details:

  • Tenor: 3 years.

  • Currency: US dollar.

  • Fixed annual interest rate: 4.27%.

  • Payout frequency: quarterly.

  • Minimum purchase: USD 100 and multiples thereof.

  • Loans against the certificate: up to 85% of its value.

  • Early redemption: after the first 6 months, according to the bank's approved redemption schedule.

Second: Export Development Bank of Egypt's dollar certificate

Export Development Bank of Egypt offers 3-year fixed-rate US dollar certificates of deposit, with a choice of payout frequency, including quarterly.

Certificate details:

  • Tenor: 3 years.

  • Currency: US dollar.

  • Fixed annual interest rate: 2.25%.

  • Payout frequency: quarterly.

  • Minimum: USD 500 and multiples thereof.

  • Loans against the certificate: up to 90% of its value.

  • Early redemption: after 6 months from the issue date, subject to the applicable terms and conditions.

Example return on the two certificates

For a certificate worth USD 10,000, assuming the announced interest rates stay unchanged throughout the tenor:

  • Suez Canal Bank: annual interest of USD 427, or USD 106.75 a quarter.

  • Export Development Bank of Egypt: annual interest of USD 225, or USD 56.25 a quarter.

That puts the difference in quarterly interest between the two certificates at USD 50.50 in favor of the Suez Canal Bank certificate, for the same amount invested.

Banky's view

The comparison shows that the Suez Canal Bank certificate comes out ahead on the annual interest rate, at 4.27% against 2.25% for the EBE certificate. It also has a lower minimum purchase of USD 100, compared with the USD 500 minimum published for EBE's certificates.