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Proceeds from 1st day of Egyptian banks issuing CDs at LE11 billion

The proceeds of the new certificates of deposits, offered by the National Bank of Egypt and Banque Misr on Friday with returns of 23.5 percent and 27 percent, recorded LE 11 billion on the first day.

Heavy demand of Egyptians for these CDs continues via mobile banking and the Internet.

Banking experts advised customers to also invest long-term in gold and real estate, and for short-term investment with a monthly or annual return, recommended CDs with a return of 23.5 percent and 27 percent as the best.

The President of Banque Misr, Mohamed al-Etreby, said that the bank collected proceeds worth four billion LE, and NBE collected about seven billion LE.

He explained that the two banks offered the certificates via electronic means, including mobile phones, the Internet banking, and ATMs, and will offered starting on Monday morning in all branches.

Etreby added that the size of the proceeds is scheduled to increase with the official resumption of bank work on Monday, after the end of the weekly holiday and Christmas.

Banking expert Sahar al-Damaty advised clients to invest more of their money into treasury bills compared to certificates, as they generate a higher return, are obtained in advance, and are easier to break from the day after purchasing them.

Damaty added that investing in short-and medium-term savings certificates is suitable for customers who want to obtain a monthly annual return.

He recommended that it is not preferable to break these certificates until after six months have passed.

The return on short-term treasury bills, which the Central Bank of Egypt offers on behalf of Finance Ministry, jumped to approximately 28 percent annually, before deducting tax from the total return to reach 24 percent annually.

A member of the Stock Exchange’s Board of Directors and economic expert Rania Yacoub said that gold will continue to occupy the throne of safe long-term investments, especially with the increase in tensions in the Middle East.

She added that real estate is also a safe haven for the Middle East, and there is great interest in the field from Arab funds and local investors.

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