01:21 PM Saturday 06 January 2024
Written by Manal Al-Masry:
Some bank customers are currently looking to calculate the fine for breaking their certificates and their cost to reinvest their proceeds in the new certificate offered at the National Bank and Misr Bank at the highest interest rate at the level of the banking sector with an annual return of 23.5%, the return is paid monthly and 27% is paid at the end of its term.
Banks allow their customers the possibility of breaking the certificate before its expiry, provided that 6 months have passed since purchasing it, in exchange for deducting a fine from the total return due that the customer obtained over the course of linking it due to breaking it before its expiration date, but the percentage of the fine varies from one bank to another.
On Thursday, the National Bank of Egypt and Egypt Bank announced the offering of a one-year maturity certificate with two high interest rates: 23.5%, the return is paid monthly, and 27% is paid at the end of its term, starting yesterday, Friday, coinciding with the deposit of the first maturity in the previous certificate for the annual return of 22.55%, paid monthly and 25% annually, in customer accounts.
In the following lines, Masrawy provides details of breaking high-yield certificates in 4 banks with the aim of reinvesting their proceeds in the high-yield certificate in the National Bank and Egypt Bank:
Commercial International Bank CIB
Fine for breaking the “Prime” triple certificate with an annual return of 17%: The bank deducts 11% from the total return due after the first 6 months and up to the first year of issuance, 10% during the second year, and 9% during the third year.
Penalty for breaking the triple certificate “Plus” with an annual return of 17.5%: If the bank breaks it before the expiry of its term, the bank will deduct 13.5% of the total return due during the first year, 12.5% during the second year, and 10.5% during the third year.
Penalty for breaking the “Premium” triple certificate with an annual return of 18%: The bank deducts 16% from the total return due 6 months after issuance and until the end of the first year, 14% during the second year, and 12% in the third year.
HSBC Bank
Penalty for breaking a triple certificate with an annual return of 17.25%: The bank deducts 5% from the total return due in the first year, 4% in the second year, and 3% in the third.
Egyptian Gulf Bank
Fine for breaking the “premium” triple certificate with an annual return of 19%: The bank deducts from the total return due 14% during the first year, 13% in the second, and 12% in the third.
Housing & Development Bank
Fine for breaking the triple certificate “Luxury” with an annual return of 18.25% paid monthly and 20% annually: The bank deducts from the total return due 11% from after 6 months until the first year, 10.5% in the second and 10% in the third.
2024-01-06 11:21:00
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