There are 27 A class commercial banks in Nepal. They provide different interest rates in different types of accounts. Today we find Highest Interest Paying Bank in Nepal.
Highest Interest Paying Bank in Nepal
Generally commercial banks revise their interest once a month. In every first of Nepali calendar they publish the revised interest rates. Generally development banks and finance companies give higher interest compared to commercial banks. Among the commercial banks also there is variation.
Nepal Rastra Bank solely regular the financial activities of the government. It is the official bank of Nepal government. Each commercial bank has to follow the rules and regulation of Nepal Rastra Bank (NRB).
Similarly NRB monitors and supervise each bank and financial institutions of the country. Every year NRB publishes the monetary police. This monetary police drive the activities of the banks.
Nepal Bank Limited
It is the first bank of Nepal. In the past there were only two banks in Nepal. Namely, Nepal bank and Rastriya Banijya Bank. They served for many years. Only after the restoration of the democracy government allowed private sectors to run the banks.
Saving Interest Rate
The bank rate directly depends upon the available liquidity in the banks. Like if the banks they have surplus liquidity the interest goes down. But when there will be liquidity crunch in the market then banks increase the interest to attract the deposit.
This fluctuation in the interest hit the stock market. Hence if the interest rate in the banks goes down the depositors move toward stock market. Inversely if the bank interest goes up people want to sell the shares and deposit the amount in the bank.
Fixed Deposit Interest Rate
There is variation in the fixed deposit interest rate in different banks. Basically the development banks offers higher interest rate compared to ‘A’ grade commercial banks.
It is the choice of the depositor to choose the bank.
Currently there is scarcity of liquidity in the banks. Hence interbank interest is also high. At this moment banks are offering high interest rate in the fixed deposit.