16 August 2024, Kathmandu
Nepal Bank, a government-owned financial institution, has reduced its interest rates effective August 17.
Nepal Bank Announces Interest Rate Reduction
The new rates affect various deposit accounts and are aimed at offering more competitive terms for customers.
For term deposits, the bank will now provide an interest rate of 4 percent for institutional depositors and 5.25 percent for individual depositors. This marks a decrease from the previous rates in July, which were set at 4.25 percent for institutions and 6.25 percent for individuals. Additionally, the interest rate for remittance accounts has been reduced to 6.25 percent from 7.75 percent.
The bank has also lowered the interest rates for ordinary savings accounts. In August, the rates will range from a minimum of 3.01 percent to a maximum of 5.01 percent, compared to the July rates of 3.20 percent to 5.20 percent.
The reduction in interest rates is accompanied by a decrease in the bank’s base rate, which has been adjusted from 7.88 percent to 7.87 percent. The bank allows for a premium of up to 5 percent on the base rate, with the current spread rate set at 3.95 percent.
These changes are part of Nepal Bank’s strategy to align its offerings with market conditions and provide more favourable options for depositors and borrowers alike. Customers are encouraged to review the new rates and consider how these adjustments might benefit their financial planning.
Nepal Bank Announces Interest Rate Reduction
