The Central Bank of Egypt decided to raise key interest rates by 1%, to 20% for overnight deposits and 21% for overnight lending, and to 20.5% for both the main operation rate and the credit and discount rate, aiming to anchor inflation expectations and keep inflation on its downward path amid rising uncertainty and global economic challenges.

QNB Egypt offers its individual customers the Smart certificate, which carries a floating monthly return with a minimum rate, a tenor of 3 years and a minimum purchase of EGP 500,000. Interest is paid monthly at a floating rate linked to the overnight deposit rate announced by the Central Bank of Egypt plus 0.50%, with a minimum rate of 17.25% per annum, while the current rate stands at 20.50% per annum. The certificate also allows holders to obtain credit facilities secured against it, to check it through e-banking services, and to redeem it 6 months after the issue date.

Features of QNB Egypt's 3-Year Floating-Rate Smart Certificate

  • Available to individual customers.

  • Floating return linked to the CBE's overnight deposit rate plus 0.50%, with a minimum rate.

  • Interest accrues from the business day following the certificate's issue date.

  • Multiple certificates can be issued for different amounts, with no maximum on the amount or number of certificates.

  • Certificates can be checked through QNB's e-banking services.

  • Credit facilities can be obtained against the certificate, in the same currency.

  • The certificate can be redeemed 6 months after the issue date.

  • Currency: Egyptian pound.

Details of QNB Egypt's 3-Year Floating-Rate Smart Certificate

  • Tenor: 3 years.

  • Payout frequency: monthly.

  • Minimum purchase: EGP 500,000 on first issue, then multiples of EGP 1,000.

  • Interest rate: 20.50% per annum.

  • Minimum interest rate: 17.25% per annum.

Worked example:

If you invest EGP 1 million in QNB Egypt's floating-rate Smart certificate with monthly interest, and assuming the rate stays at 20.50% per annum, the monthly return could reach about EGP 17,080, or EGP 205,000 a year. Note that the return is floating and linked to the overnight deposit rate announced by the Central Bank of Egypt, with a minimum of 17.25% per annum.