Commercial Banks publish new interest rates after agreement with Bankers' Association; See the new interest rates in deposits

After Banker’s Association agreed to put a cap on deposit interest rates, the banks have decided to maintain their interest rates as per the agreement made. As per the agreement, interest rate on fixed deposits shall not be exceeding 10.50% for institutional depositors and not exceeding 11% for individual investors. In the previous agreement, the institutional investors could receive interest upto 11.15%.

Similarly, the banks can provide interest on saving deposit for interest rate not exceeding 7%.

Following the same decision many commercial banks have published a notice regarding the new interest rates of the banks.

Out of the banks that have published the new interest rates, maximum interest rate of 7% in deposit is provided by many banks. Nepal Investment Bank Limited and Bank of Kathmandu provide the least interest of 3.50% in the saving deposit. Similarly, Siddhartha Bank Limited and Himalayan Bank Limited have provided 11% interest rate on individual fixed deposits which is the highest among the banks that have revised their interest rates while most of the banks have maintained 10.50% interest rates for the institutional deposits.  

The banks will be paying the interest of on the deposits in a quarterly basis. The agreement has also made restrictions in the interest rates for loans. Some of the banks have been determining the interest rate after adding 5/10% premium in the base rate which had affected in the reputation of the banks.

Nepal Rastra Bank and Ministry of Finance have also provided their approval in the recently made agreement. After the revocation of the previous agreement, the banks had started to provide upto 12% interest in fixed deposits for the individual depositors while the interest rate for the institutional depositors had reached to 14%.

The rates which have not been mentioned remain as per the existing interest rates provided by the banks.