14th June 2025, Kathmandu
Nepal’s banks have rolled out their updated interest rates for fixed deposits effective from Ashar. On Jestha 31(14 June), official notices confirmed these rates, giving savers a clear picture before the new month begins.
Nepalese Banks’ Interest Rates Ashar
Commercial Banks: Stability with A Few Surprises
Out of 19 commercial banks, a majority of 14 banks chose to keep their fixed deposit interest rates steady, signaling a period of cautious confidence. However, five banks decided to lower their rates, adding a twist to the story.
Kumari Bank led the rate cuts by dropping from 5.91% to 5.71%, while Prabhu Bank followed, slashing its rate from 6.61% to 6.10%. Everest Bank trimmed its rate slightly from 6.64% to 6.55%, and NMB Bank reduced from 6.60% to a neat 6.00%. NIC Asia Bank also lowered rates marginally, from 6.60% to 6.55%.
Meanwhile, well-known names like Rastriya Banijya Bank, Sanima Bank, Standard Chartered Bank, Nabil Bank, and Siddhartha Bank maintained their rates. For example, Rastriya Banijya Bank kept its fixed deposit rate at a stable 6.00%, and Sanima Bank held firm at 6.33%. This decision to maintain rates reflects confidence in the current economic environment.
Development Banks: Mixed Moves Show Market Dynamics
The story is a bit more varied among national-level development banks. Six banks kept their interest rates unchanged at 6.50%, showing steady footing amid changing market forces. These include Kamana Sewa, Jyoti, Garima, Lumbini, Muktinath, and Garima Bikas Bank.
In contrast, Shangrila Development Bank surprised customers by lowering its rate from 6.25% to 6.16%. On the other hand, Mahalaxmi Bikas Bank increased its rate slightly from 6.00% to 6.15%, indicating a competitive effort to attract more depositors.
What Does This Mean For Savers?
Overall, six commercial banks trimmed their rates, while most kept them stable. This cautious approach signals banks’ efforts to balance profitability with the need to attract deposits in a fluctuating market. For fixed deposit holders, these changes highlight the importance of comparing rates and timing deposits wisely.
Why Interest Rate Changes Matter Now?
Interest rates influence saving habits and liquidity in the economy. Banks set these rates based on factors like central bank policies, market liquidity, and competition. The mixed changes for Ashar reflect ongoing adjustments as banks respond to economic signals.
Looking Ahead
As Ashar begins, depositors have a variety of options. Many banks offer steady, reliable rates, while a few have adjusted rates to better match market realities. Savers should stay informed and choose options that best suit their financial goals.
In conclusion, Nepal’s banks have shown a balanced approach to Ashar’s interest rates, mostly steady but with selective changes. This strategy aims to maintain confidence while responding to market demands. Fixed deposit customers can plan accordingly, benefiting from transparency and choice in their savings journey.
For more: Nepalese Banks’ Interest Rates Ashar