Banks in the Egyptian market offer current accounts that pay monthly interest, letting customers manage their day-to-day banking while earning a return on their balances. Interest rates vary by balance size and by the minimum required to open the account and earn interest, giving customers a range of options to suit their financial needs.

In the following comparison, we review the details of The United Bank's interest-bearing Star current account and Bank of Alexandria's Alex Plus account, setting out the balance tiers and monthly interest rates, and calculating the expected return on a deposit of EGP 1 million in each account.

First: Features of The United Bank's Star current account

The United Bank offers the Star current account for individuals with a tiered interest rate set by balance bracket: the rate rises as the amount deposited in the account increases. Interest is calculated on the daily closing balance and paid monthly.

Star account details from The United Bank

  • Interest rate: up to 13.25% a year.

  • Minimum to open the account: EGP 100,000.

  • Minimum balance to earn interest: EGP 100,000.

  • Interest payout frequency: monthly.

  • Eligibility: individuals (natural persons).

  • Currency: Egyptian pound (EGP).

Star account interest tiers at The United Bank

Interest rates on the Star account are tiered by balance as follows:

  • 10% a year: for balances from EGP 100,000 to less than EGP 500,000.

  • 10.50% a year: for balances from EGP 500,000 to less than EGP 750,000.

  • 10.75% a year: for balances from EGP 750,000 to less than EGP 1 million.

  • 11.50% a year: for balances from EGP 1 million to less than EGP 3 million.

  • 13.25% a year: for balances of EGP 3 million and above.

Second: Features of Bank of Alexandria's Alex Plus current account

Bank of Alexandria (alexbank) offers the Alex Plus current account with a tiered interest rate paid monthly and calculated on the daily closing balance, starting from a balance of EGP 500,000 for Egyptian-pound accounts.

Alex Plus account details from Bank of Alexandria

  • Interest rate: up to 7% a year.

  • Minimum to open the account: EGP 2,500 or the equivalent in US dollars.

  • Minimum balance to earn interest: EGP 500,000.

  • Interest payout frequency: monthly.

  • Eligibility: individuals.

  • Available currencies: Egyptian pound and US dollar, subject to the account's terms.

  • Chequebook: can be issued.

  • Digital services: account management via the mobile app and internet banking.

  • Additional services: ATM access and transaction tracking through account statements and SMS alerts.

Alex Plus account interest tiers at Bank of Alexandria

Interest rates on the Alex Plus account vary by balance, according to the published pricing table, as follows:

  • 3% a year: for balances from EGP 500,000 to less than EGP 1 million.

  • 4% a year: for balances from EGP 1 million to less than EGP 2.5 million.

  • 4% a year: for balances from EGP 2.5 million to less than EGP 5 million.

  • 4% a year: for balances from EGP 5 million to less than EGP 10 million.

  • 5% a year: for balances from EGP 10 million to less than EGP 15 million.

  • 7% a year: for balances of EGP 15 million and above, according to available data.

Banky's view

The comparison shows The United Bank's Star current account outperforming Bank of Alexandria's Alex Plus account on interest for balances of EGP 1 million: The United Bank pays 11.50% a year on balances from EGP 1 million to less than EGP 3 million, against 4% a year on the Alex Plus account for balances from EGP 1 million to less than EGP 5 million.

Worked example: the return on EGP 1 million

  • Depositing EGP 1 million in The United Bank's Star account at 11.50% a year yields annual interest of about EGP 115,000, or about EGP 9,583 a month, assuming the balance stays constant throughout the calculation period.

  • Depositing the same amount in Bank of Alexandria's Alex Plus account at 4% a year yields annual interest of about EGP 40,000, or about EGP 3,333 a month, assuming the balance stays constant throughout the calculation period.

  • That puts the difference between the two accounts at about EGP 75,000 a year, or EGP 6,250 a month, in favour of The United Bank's Star account.