Kumari Bank Reduces Personal Fixed Deposit Interest Rates for October 2025
16th September 2025, Kathmandu
Kumari Bank has announced a reduction in its personal fixed deposit interest rates for the Nepali month of Ashoj 2082 (mid-September to mid-October 2025).
KBL Reduces Interest Rates
The maximum rate for personal fixed deposits has been lowered from 5.01 percent to 4.81 percent. This change, however, does not apply to institutional fixed deposits, which will remain at a maximum of 4.01 percent. This move by Kumari Bank aligns with a broader trend in Nepal’s banking sector of easing deposit rates due to a surplus of liquidity.
New Interest Rate Structure
Kumari Bank’s new rates for personal fixed deposits are tiered based on the tenure of the deposit. The longer the commitment, the higher the interest rate a customer can earn.
- 3 to <6 months: 3.21%
- 6 months to <1 year: 3.41%
- 1 year to <2 years: 3.91%
- 2 years and above: 4.81%
This structure is a clear incentive for customers to lock in their funds for a longer period to secure the best possible return.
Digital Banking Advantage
In a bid to promote its digital banking services, Kumari Bank offers slightly higher interest rates for customers who open and manage their fixed deposits through the Kumari Smart App. These app-exclusive rates provide a competitive edge and reward tech-savvy customers.
- 3 to <6 months: 3.41%
- 6 months to <1 year: 3.61%
- 1 year to <2 years: 4.11%
- 2 years and above: 5.01%
By utilizing the mobile banking app, customers can earn up to 0.20 percentage points more than the standard branch-based rates. The highest rate of 5.01 percent is available only through the digital channel for deposits with a tenure of two years or more.
Market and Economic Context
The decision by Kumari Bank to reduce its interest rates is not an isolated event. It reflects the current macroeconomic and monetary environment in Nepal. The banking sector has been experiencing a surplus of liquidity, which is the result of a combination of factors, including robust remittance inflows and a moderate demand for credit. With banks having a comfortable amount of funds, they feel less pressure to attract deposits by offering high interest rates. Additionally, the low and stable inflation rate in the country also contributes to this trend, as there is less need for banks to offer higher returns to compensate for rising prices.
For customers, this environment means that they need to be more strategic with their savings. While traditional savings may yield slightly lower returns, digital platforms and long-term fixed deposits offer opportunities for better yields. It’s also important for customers to compare rates across different banks, as some institutions are still offering rates as high as 6 percent, presenting an attractive alternative for those seeking to maximize their returns in this gradually softening interest rate environment. This trend underscores the importance of staying informed about monthly rate changes to make the most out of one’s savings in a competitive and evolving financial market.
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