The Interest Rates Of Banks and Financial Institutions For The Month Of Jestha; Has The Interest Rates Increased?

Commercial banks had kept their interest rate profile unchanged in Jestha. The maximum interest rate on fixed deposits provided by commercial banks was 11.03%. The tenure for such fixed deposits is above three months or above six months, depending upon the banks.

Most banks had interest rates of 11.03% for tenure above three months. However, for Standard Chartered and Nepal SBI Bank, the interest rates on fixed deposits were fixed according to the time frame. For standard chartered, the interest rate was 10.3% for periods of less than three months and 11.03% for periods higher than three months. Likewise, Nepal SBI had fixed its rates as; 6.6% above three months, 8.8% above six months, 11.03% above one year, and 9.95% above two years.

Most commercial banks provide a 6.03% interest rate p.a. for depositors on savings.

In contrast, institutions were offered a maximum of 10.03% on fixed deposits.

Coming towards development banks, they have raised the interest rates on deposits. The highest interest rate for individuals on fixed deposits is 12.5%, which has been raised by Lumbini Development Bank and Narayani Development Bank. Likewise, Miteri Development Bank and Corporate Development Bank have also increased their interest rates to 12.25%.

Just last month the interest rates on fixed deposits was 11.55%. From this month, the rates have been increased to 12% and many development banks have stated that they will pay 12% interest on fixed deposits.

This rate for institutional depositors have also increased to 11%. Previously, the interest on fixed deposits for institution depositors were 10.55%.

Most of the development banks are offering interest rates up to 7 percent on savings accounts for the month of Jestha. However, Corporate Development bank is offering higher interest on general savings up to 7.30%.

Finance Companies have also raised the interest rates on deposits. The highest interest rate for individuals on fixed deposits is 12%. This rate is 11% for institutional depositors.

For the last month i.e Baishakh, the interest rates on fixed deposits for individuals and institutional depositors was 11.71% and 10.71% respectively.

Each finance companies generally have a different range of interest rate for savings accounts. Goodwill Finance Company Limited and Samriddhi Finance Company Limited has offered to pay the highest interest on saving accounts i.e (7.15%- 9.15%) and 9% respectively. Likewise, Nepal Finance Limited, Shree Investment and Finance Company Limited and, ICFC Finance Limited has offered to pay the higher interest on savings account by 8.75%, 8.50% and 8.50% respectively. Apart from this, the average rates of interest on savings account for most of the finance companies is 7.15% p.a for the month of Jestha.