Returns
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Amount & term
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Withdrawal & renewal
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Our take
Pros
- It is possible to borrow against it in accordance with applicable rules.
- You can invest for the long term with the flexibility to choose the return frequency.
- It may be redeemed prior to the end of the term, in accordance with the rules and conditions announced by the bank.
- Low minimum amount to open the deposit: starts at just EGP 1,000.
Cons
- Lower interest yield compared to certificates: The interest rate on deposits is significantly lower than that of the savings certificates offered by the bank.
- Diminishing returns with longer terms: For long-term deposits (ranging from 4 to 7 years or more), the annual return rate is lower compared to shorter terms (one or two years).
- Loss of interest upon early withdrawal: Although the deposit can be redeemed at any time, withdrawing it before maturity results in a recalculation of the return or the deduction of a portion of it as an early withdrawal penalty.
Our take
A deposit is a short-term liquidity management tool rather than a long-term investment vehicle. If your goal is a higher return, certificates are the most suitable choice; however, if you prioritize flexibility and quick access to liquidity, a deposit is the better option. Choose a "deposit" in the following situations: If you have temporary surplus funds that you know you will need in the near future (within a week, a month, or a period ranging from a few months to a year) and wish to earn a return on them rather than leaving them in a current account. If you are concerned about locking up your funds and want the ability to withdraw or reclaim them at any time, without having to wait for a six-month period to elapse.
Deposits at the National Bank of Egypt are a short-term liquidity management tool, not a long-term investment instrument.