Housing & Development Bank (HDB) offers the chance to earn a daily return of more than EGP 1000 through its floating-rate 3-year certificate, which pays an interest rate of up to 19% with daily payout, with other payout options including monthly, quarterly and semi-annual, giving customers flexibility in managing their savings and a regular return that suits their financial needs. A customer needs to invest about EGP 2 million to earn a daily return of more than EGP 1000 at the currently announced interest rate, bearing in mind that the rate is floating and may be affected by changes in interest rates.

HDB's floating-rate 3-year certificate

Interest rate:

  • Daily: 19%, with a minimum of 17.25%

  • Monthly: 19.25%, with a minimum of 17.25%

  • Quarterly: 19.3%, with a minimum of 17.25%

  • Semi-annual: 19.35%, with a minimum of 17.25%

  • Tenor: 3 years

  • Minimum to issue the certificate: EGP 500 and multiples thereof

Worked example:

If you save EGP 2 million for a daily return from HDB's floating-rate 3-year certificate, you will receive:

  • Annual return: 2,000,000 × 19% = EGP 380,000

  • Daily return: 380,000 / 12 / 30 = EGP 1055

Benefits of HDB's floating-rate 3-year certificate

  • The certificate is for individuals.

  • Tenor: three years.

  • Issued in Egyptian pounds (EGP).

  • Floating annual interest rate

  • The certificate can be redeemed after 6 months from the purchase date, in line with the bank's redemption policy.

  • Available through branches, internet banking and mobile banking

Banky's view:

HDB's floating-rate 3-year certificate stands out for providing customers with regular income and a choice of payout frequencies: daily, monthly, quarterly or semi-annual, helping customers organise their cash flows to suit their needs. The certificate also has a minimum issue amount starting from EGP 500 and can be bought through the bank's branches and digital channels, making it easy to access and to manage the investment.

On the other hand, the return is floating by nature, which means it could fall during the certificate's three-year term as interest rates change, which may affect the expected periodic income. Earning a daily return of more than EGP 1000 also requires a large investment of about EGP 2 million at the current rate, and the certificate cannot be redeemed before 6 months from its purchase date, subject to the bank's applicable redemption terms.