The National Bank of Egypt, Banque Misr, Banque du Caire, and the Agricultural Bank of Egypt will offer the Safety Certificate for Egyptians next week, after it was launched by President Abdel Fattah al-Sisi on Thursday, during the inauguration of the New Alamein city.
The Safety Certificate is a savings certificate in the local currency provided with a life insurance policy.
The return is paid through the prepaid card in the first stage, or the mobile wallet is the second stage.
The new certificate will be available at the banks on Sunday, in all Cairo and other governorates’ branches, said Yahya Aboul Fattouh, Vice President of the National Bank of Egypt.
The certificate will be available for individuals aged between 18 to 59 years old for individuals, with a collective purchase of up to 54, he added.
Sahar al-Damaty, Vice President of Banque Misr, said that basic features of the certificate are that they are nominal, as they can not be traded, endorsed, transferred, debited, or mortgaged to a party other than the bank.
Subscription to this offer is limited to Egyptians only, regardless of whether they are current or new clients, she added.
Damaty mentioned that the category of the certificate is LE500 and its multiples of upto LE2,500. She added that the duration of the certificate is 3 years and it is automatically renewed at the date of maturity in full nominal value, for another similar period only, according to the rates applicable at the date of renewal.
The value of yield will be calculated after deducting the prepaid installments or the Mobile Wallet (in the second phase) for the customer on the due date, she added.
Advantages include exempting them from the reserve ratio. It is not permissible to borrow with these certificates, she said.
She added that the documents required to obtain the certificate include a copy of the valid identify card.
The rate of return is up to 16 percent per annum and is disbursed at the end of the period. The insurance premium is paid from the return, and the rate of return on the certificate can be changed one year after the issuance of the certificate according to market developments, she mentioned.
Edited translation from Al-Masry Al-Youm