Banks in Egypt's banking market compete to offer a variety of savings products for customers looking to invest their savings and earn a suitable return over a set period. One-year time deposits are among the options available to customers who want to invest their money for a year, with interest rates and placement terms varying from bank to bank.

In the following comparison, Banky sets out the key details of the 1-year EGP time deposit from Suez Canal Bank and the 1-year EGP time deposit from Al Ahli Bank of Kuwait – Egypt (ABK-Egypt) to help customers choose the one that suits them best.

First | The 1-year deposit from Suez Canal Bank

  • Interest rate: 11.75% per year in EGP.

  • Tenor: 1 year.

  • Minimum deposit: EGP 2,000.

  • Payout frequency: at maturity.

Features of the Suez Canal Bank 1-year deposit

  • Interest can be credited to a current account, a savings account or the deposit itself, at the customer's request.

  • Investment is available from a minimum of EGP 2,000 for the EGP deposit.

  • The deposit can be redeemed early in accordance with the applicable terms and conditions.

Second | The 1-year deposit from Al Ahli Bank of Kuwait – Egypt

  • Interest rate: 3.25% per year.

  • Tenor: 1 year.

  • Minimum deposit: EGP 5,000.

  • Payout frequency: at maturity.

Features of the ABK-Egypt 1-year deposit

  • The deposit can be renewed automatically under the announced terms.

  • Electronic banking services are available to check the deposit and interest and to carry out banking transactions.

  • Financing can be obtained against the deposit, subject to the bank's credit terms and controls.

Banky's view: which deposit is better?

The Suez Canal Bank 1-year deposit has a clear advantage in terms of annual interest rate, at 11.75%, compared with 3.25% for the ABK-Egypt 1-year deposit, according to the data available for the comparison.

Suez Canal Bank's advantage is not limited to the higher return; it also extends to a lower minimum deposit. Customers can start with EGP 2,000, compared with EGP 5,000 at ABK-Egypt, giving those with smaller savings a better chance to invest.

Based on these figures, Suez Canal Bank comes out ahead in the comparison on both annual return and minimum deposit, especially for customers whose priorities are earning a higher return and investing smaller amounts.

Example in numbers: what is the return on EGP 500,000?

Investing EGP 500,000 in the Suez Canal Bank 1-year deposit at an interest rate of 11.75% yields an expected return of EGP 58,750 over one year, bringing the total after interest to EGP 558,750.

By contrast, the same amount invested in the ABK-Egypt 1-year deposit at an interest rate of 3.25% earns annual interest of EGP 16,250, bringing the total after one year to EGP 516,250.

The difference between the two returns is therefore EGP 42,500 in favor of the Suez Canal Bank deposit when investing EGP 500,000 for a full year.