What is the difference between a fixed and a variable return on savings certificates? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is the difference between a fixed and a variable return on savings certificates?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

A fixed return guarantees you the same interest rate for the entire tenor of the certificate, without change.

A variable return, on the other hand, is linked to the deposit and lending rate (the corridor) announced by the Central Bank of Egypt (CBE); if the CBE raises interest rates, the return on your certificate rises, and if it cuts them, it falls.

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