National Bank of Egypt increases interest rate on savings account to ‘excellent’ 5.1% | Personal Finance | Finance

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The National Bank of Egypt (UK) has increased the on its one-year fixed account to 5.1 percent, earning an “excellent” Moneyfactscompare rating.

The account is aimed at savers with larger sums to invest as it requires a minimum deposit of £10,000 to open.

However, savers can expect to see sizeable returns. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £510 over the course of a year.

Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “The National Bank of Egypt (UK) Limited has increased the rates across its Raisin UK – Fixed Term Deposits.

“The one-year option now pays 5.1 percent and may appeal to savers looking for a competitive return over the short-term, but the account must be opened with a minimum investment of £10,000.

“Earlier access and further additions are not permitted, so careful planning from the outset will be essential. Overall, the deal receives an Excellent Moneyfacts product rating.”

Up to £85,000 can be invested overall and interest is applied to the balance on maturity.

While The National Bank of Egypt (UK) may be offering a more attractive deal, it isn’t currently topping the table for one-year fixed rates.

My Community Bank is offering an Annual Equivalent Rate (AER) of 5.21 percent. The account can be launched with a minimum deposit of £1,000 and interest is paid on maturity.

Al Rayan Bank places just behind with an Expected Profit Rate of 5.2 percent. Instead of paying interest to savers, Al Rayan Bank, as an Islamic bank, invests customers’ deposits in ethical, Sharia-compliant activities to generate a profit.

Profit rates are expected, however, the bank said it has always paid at least the profit rate it has quoted to its customers since it was founded in 2004.

Savers need a minimum deposit of £1,000 to launch the account and profit is paid on maturity.

Commenting on the market, Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the wealth manager, said: “Savings rates have remained resilient since the start of the year and with interest rates remaining at a 16-year high of 5.25 percent and inflation in retreat, more savers can now enjoy a real return on their saving pot.

“Locking in a top deal now while interest rates are still high is wise for anyone with money idling in an account offering a low return.

“While the top easy-access deals, notice and fixed-rate bonds still top the five percent mark, remember the devil is in the detail with lenders applying rules such as minimum deposits, withdrawal restrictions or savings caps.

“So, savers must read the small print carefully as they may need to meet certain criteria to achieve the headline rate.”

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