Banks raise interest rates on savings after NRB directive; Century & NIC Asia offering up to 8%

A handful of commercial banks have published notices today announcing increase in interest rates on various savings products they offer. This comes after Nepal Rastra Bank (NRB) had directed all licensed Banks and Financial Institutions (BFIs) last month to maintain interest rates on call accounts lower than general saving account rates by the end of Chaitra, 2073. In another related directive by NRB issued yesterday, it has set new definition for general savings account. According to the new directive, the savings product that offers the least interest rate will be regarded as the general saving account. BFIs have opted to increase the interest rates on savings to comply with this directive. NIC Asia Bank has also introduced new savings schemes today offering as much as 8% p.a. interest. “Samunnati Bachat Khata” provides 8% interest with quarterly interest payments. As per an official of NIC Asia Bank, the minimum balance for this product is zero and customers can avail the offer from any branch of the bank. Earlier, NIC Asia was offering 3% on various products which it has to 6%. Likewise, Century Commercial Bank Limited has also published an advert today announcing 8% interest rate on savings account. As per an official of CCBL, the bank is offering 6%-8% interest rate on its savings products. Kumari Bank, Siddhartha Bank, Global IME Bank and Standard Chartered Bank have also published new interest rates today.