Banks compete to offer 3-year fixed-rate savings certificates for customers seeking a relatively safe investment and regular periodic income throughout the certificate's term. Bank NXT's 3-year fixed-rate certificate and Banque Misr's Al Qemma certificate stand out among the options available to savers. The two certificates share the same tenor and minimum purchase but differ in interest rates and available payout frequencies, which determines the better choice depending on the return a customer is targeting and how they want to receive it.

Bank NXT 3-Year Fixed-Rate Certificate

  • Interest rate and payout frequency:

    • Monthly: 18%

    • Quarterly: 18.25%

    • Semi-annual: 18.35%

    • Annual: 18.50%

  • Tenor: 3 years

  • Minimum purchase: EGP 1,000

Features of Bank NXT's 3-Year Fixed-Rate Certificate

  • Available to individuals only

  • Issued in EGP

  • Loans available against the certificate of up to 95% of its face value

  • Early redemption possible 6 months after issue.

Banque Misr Al Qemma Certificate

  • Interest rate and payout frequency:

    • Monthly: 17.75%

    • Quarterly: 17.85%

  • Tenor: 3 years

  • Minimum purchase: EGP 1,000

Features of Banque Misr's Al Qemma Certificate

  • Issued to natural persons only.

  • Tenor: 3 years.

  • All or part of the certificate's value can be redeemed 6 months after the issue date, under the certificate's redemption rules

  • Loans available against the certificate

Return comparison on EGP 500,000:

MonthlyEGP 7,500 per monthAbout EGP 7,395 per month
QuarterlyEGP 22,810 every 3 monthsEGP 22,310 every 3 months
Semi-annualEGP 45,875 every 6 monthsNot available
AnnualEGP 92,500 per yearNot available
Total return over 3 years, monthly payoutEGP 270,000EGP 266,250

Banky's View: Which Certificate Is Better?

Bank NXT's 3-year fixed-rate certificate has the edge on interest rates, paying 18% a year with monthly payout against 17.75% for Banque Misr's Al Qemma certificate with monthly payout. Bank NXT's certificate also offers a wider choice of payout frequencies, including semi-annual payout at 18.35% and annual payout at 18.5%, giving customers more flexibility to choose how often they receive their return according to their financial needs.

The two certificates have the same 3-year tenor and the same EGP 1,000 minimum purchase, and both allow loans against the certificate and early redemption after 6 months, subject to terms and conditions. On interest rates, the advantage goes to Bank NXT, especially for customers looking to maximize income from their savings. For example, investing EGP 500,000 with monthly payout earns EGP 7,500 a month from Bank NXT, against about EGP 7,396 from Banque Misr, a difference of roughly EGP 104 a month.

Bottom line:

For the highest fixed return and a choice of payout frequencies, Bank NXT's certificate is the more competitive option, with an interest rate of up to 18.50% a year.