Banks Revise Interest Rates, NMB and NIC Asia Top the Charts ➤

Banks Revise Interest Rates, NMB and NIC Asia Top the Charts

Commercial Banks Announce New Deposit Rates for Jestha, Reflecting a Downward Trend

As the month of Jestha approaches, commercial banks in Nepal have unveiled their revised interest rates for fixed deposits, with the overall trend indicating a slight decline. According to the published notices, the average interest rate for individual fixed deposits is set to decrease from 7.14 percent in Baishakh to 7.06 percent in Jestha, while the average interest rate for institutional fixed deposits has dropped by 0.07 percent.

Among the 19 operational commercial banks, nine institutions, including Himalayan Bank, Prabhu Bank, Kumari Bank, Machhapuchchhre Bank, Standard Chartered Bank, Nepal Investment Mega Bank, Laxmi Sunrise Bank, Nepal Bank, and Rastriya Banijya Bank, have opted to maintain their interest rates unchanged.

On the other hand, eight banks—NMB Bank, Citizens International Bank, Siddhartha Bank, Prime Commercial Bank, Sanima Bank, Nabil Bank, Everest Bank, and Nepal SBI Bank—have reduced their interest rates for the upcoming month. Conversely, NIC Asia Bank and Global IME Bank have chosen to raise their interest rates, bucking the overall downward trend.

In the race for offering the highest interest rates, NMB Bank and NIC Asia Bank have emerged as the frontrunners for Jestha. Both banks are set to provide an attractive 7.8 percent interest rate on individual fixed deposits, while offering 6.8 percent interest on institutional fixed deposits. This competitive offering is likely to attract depositors seeking higher returns on their investments.

At the opposite end of the spectrum, Nepal SBI Bank has announced the lowest interest rate of 6.39 percent for individual fixed deposits, potentially prompting customers to explore alternative options for their savings.

The fluctuations in interest rates reflect the dynamic nature of the banking industry and the ongoing efforts by financial institutions to strike a balance between attracting deposits and maintaining profitability. As depositors evaluate their options, factors such as interest rates, bank reputation, and customer service will play a crucial role in their decision-making process.

While the overall trend suggests a slight downturn in interest rates, the variations among individual banks highlight the competitive landscape within the Nepali banking sector. Customers are encouraged to carefully assess their financial goals and seek professional advice to make informed decisions regarding their savings and investments.