Commercial Banks enter agreement to reduce interest rates on fixed deposits and savings account; new rates being published

Commercial Banks have started publishing new interest rates after an internal agreement between the banks was made to reduce the interest rates on savings and fixed deposit for individual and institutional depositors.

As per the agreement, interest rate on normal savings has been reduced to 5.5%, individual fixed deposits to 8.25% and institutional fixed deposits to 7%. The banks have updated their interest rates accordingly.

Publishing the new interest rates, interest on savings account has been reduced to 5.5% by NMB Bank and Bank of Kathmandu Limited; Agricultural Development Bank and Himalayan Bank to 5%, Laxmi Bank to 4.5%; Everest Bank, Nepal Bank and Global IME Bank to 4% while Nabil Bank has reduced it to 3%.

All the banks have updated their individual and institutional fixed deposits as per the agreement.

As the interest rate on deposits is reduced, the banks are expected to revise their base rates accordingly giving some relief to the debtors of the banks who have been affected by the corona virus outbreak and the subsequent lockdown.