Banks and Financial Institutions Reduce Interest Rates for Baishakh

Banks and Financial Institutions have unveiled the interest rates profile for the month of Baishakh.

Commercial Banks:

The Chief Executive Officers of commercial banks' umbrella group, NBA, lowered the interest rates which shall be effective from Baishkah, 2080.

It has been decided to reduce the interest rate on personal deposits by 10%. The interest rate on fixed deposits has now decreased to single digits as a result of this move.

For commercial banks, the interest rate of one-year term deposits has decreased from 11 percent to 9.9 percent.

Along with this, the interest rate of institutional fixed deposits has remained at 7.99 percent. Similarly, the interest rate on savings has remained at 5.4 to 7.4 percent.

The rate of remittance has been maintained at an average of 10.99%.

Development Banks:

Development Bankers Association, an association of Development Bank Chief Executive Officers, also lowered the interest rate. The members of the committee have resolved to lower the deposit interest rate by 1%.

Now the interest rate on personal term deposits is 10.60 percent and the institutional term deposit interest rates have been lowered to 8.60 percent for a period over one year.

The average interest rate for remittance has been maintained at 11.60 percent.

Additionally, the savings interest rate has been reduced by 0.60 percentage points so the interest rates on savings of development banks will be 6 percent to 9 percent.

Finance Companies:

For the finance companies, the rates effective from Baishakh shall be 10.60 percent – 10.75 percent for individual fixed deposits. The average rates of the same for institutions is 8.75%.

On the other hand, the average interest rates for remittance has been maintained at 11.60-11.75 percent.

The interest rates on savings for finance companies has been maintained at an average rate of 8-9%.