KATHMANDU, May 14: Most commercial banks have kept the fixed deposit interest rates unchanged for the month of Jestha (mid-May to mid-June). The interest rates that will be effective from the 1st of Jestha remain the same as those in place for the month of Baishakh.
For the month of Jestha, 14 commercial banks have kept the maximum interest rates on fixed deposits unchanged.
Revised interest rate corridor system introduced
Nepal Investment Mega, Siddhartha, and Kumari Banks have reduced their fixed deposit interest rates, while Everest, Sanima, and Nepal Bank have increased theirs.
As in the previous month, NIC Asia Bank offers the highest interest rate of 6.6 percent, while Nepal SBI Bank offers the lowest rate at 5.5 percent.
Since last year’s Ashoj (mid-September-mid-November), banks have been gradually reducing deposit interest rates due to a lack of increased economic activity and low demand for loans.
The Nepal Rastra Bank has established a rule that the interest rate difference between personal fixed deposits and institutional fixed deposits must be at least 1 percentage point.
After reducing the maximum interest rate for personal fixed deposits, banks may also reduce the interest rates for savings, call deposits, and institutional deposits based on that adjustment.
