Nepal Investment Bank Decreases Interest Rates One Day After Its Own Revision Came to Effect

Nepal Investment Bank Limited (NIB) has further decreased the interest rates.

Its recent update was supposed to be effective from yesterday, i.e. Poush 01. However, it has published yet another update today itself.

The interest in savings has not changed whatsoever. The bank provides interest payments in the range of 2.25% to 4.25%, like in its previous update. However, in the revised policies in NRB's quarterly review, it was mentioned that banks were not allowed to have an interest rate on term deposits higher than 5 units from the lowest rates on savings.

Thus, it can be known that NIB can't have an interest rate higher than 7.25% on fixed deposits since its lowest interest rate is 2.25% on savings. Hence, in the new update, it is unveiled that depositors who deposit their money in fixed deposits will get interest payments in the range of 5-7.25%. In the update supposed to be effective from yesterday, individuals could get as high as 9% on fixed deposits.

Meanwhile, institutions will get either 5.5% or 6% on fixed deposits, depending on the period of maturity. Furthermore, Recurring Fixed Deposits for 33 months will now only get 7.25% interest payment p.a. compared to the previous rate of 8.25%.

Announcement