Interest on Fixed Deposits of Commercial Banks Remain Unchanged, Whereas the Rate of Interest on Savings have Decreased for the Month of Chaitra

While leaving the interest rate on fixed deposits unchanged, the Nepal Bankers Association (NBA) has decided to lower the interest rate on savings.

The chief executive officers and representatives of every commercial bank joined the meeting to review the interest rate starting on Chaitra 1. Currently, savings interest rates range from 6.42 to 8.4 percent. It has been determined to keep the rates between 6 and 8 percent.

On the other hand, Interest on fixed deposits has been kept unchanged. The Bankers Association had consented to lower the interest rate from Magh to 11% for individuals and 9% interest rates for institutions. These rates have been kept constant for the month of Falgun as well.

Likewise, it has been decided to lower the loan premium*. Now, the base rate can only have a premium of a limit of 5%. It was previously agreed to raise it to 6 percent.

*Loan Premium is usually based on a percentage of the balance that remains on the loan.