Banks lower deposit interest rates further
The average interest rates offered by banks for the month of Ashoj (mid-September to mid-October), the third month of the current fiscal year 2025/26, have declined further. Banks have been reducing interest rates in recent months as deposits in the banking system pile up and demand for credit slows.
According to the new interest rate published by commercial banks on Tuesday, the average minimum interest rate on ordinary savings accounts across the 20 commercial banks now stands at 2.75 percent, with the maximum at 3.81 percent. Similarly, the average minimum interest rate on individual fixed deposits (FDs) is 3.39 percent, while the maximum is 5.46 percent.
In the previous month, the average minimum interest rate on savings accounts was 2.76 percent and the maximum was 3.84 percent. For personal fixed deposits, the average minimum stood at 3.49 percent and the maximum at 5.59 percent.
According to the Nepal Bankers Association (NBA), all commercial banks have reduced their savings account interest rates compared to previous month. The decrease ranges from 0.002 percentage points to 0.033 percentage points. For individual fixed deposits, the decline ranges between 0.109 percentage points and 0.126 percentage points.
As a result, most banks now offer a minimum of 2.75 percent percent interest rate on ordinary savings accounts, while individual fixed deposit rates range between 2.75 percent and 5.5 percent. Nine commercial banks have lowered their interest rates on fixed deposits for Ashoj, while 10 banks have kept their rates unchanged. Standard Chartered Bank Nepal, however, bucked the trend, raising interest rate on individual fixed deposits by 0.050 percentage points to 5.18 percent.
Some banks, however, are still offering up to six percent interest on personal fixed deposits. Himalayan, Global IME, Machhapuchchhre, NIC Asia and NMB are offering six percent interest on fixed deposits. Machhapuchchhre Bank is the only commercial bank to increase its interest rates on saving accounts.
Among government-owned banks, Nepal Bank Ltd is offering up to 5.25 percent on individual fixed deposits and 3.25 percent on institutional fixed deposits. Similarly, Rastriya Banijya Bank is offering 5.5 percent and four percent, respectively, while Agricultural Development Bank has capped its interest rates on fixed deposits at 5.05 percent for individuals and three percent for institutions.
Analysts say interest rates fell also because of the Monetary Policy for 2025/26 which reduced the bank rate from 6.5 percent to six percent and the deposit collection rate from three percent to 2.75 percent.
Anil Sharma, Executive Director of the Nepal Bankers’ Association, said the continued abundance of liquidity in the banking system and the likelihood of it increasing further has pushed deposit rates steadily downward in recent months.
Gold price drops by Rs 1,000 per tola on Wednesday
The price of gold has dropped by Rs 1, 000 per tola in the domestic market on Wednesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 216, 100 per tola today.
Similarly, the price of silver has dropped by Rs 45 and is being traded at Rs 2, 550 per tola.
Gold hits new high of Rs 217, 100 per tola on Tuesday
The price of gold has reached an all-time high of Rs 217, 100 per tola in the domestic market on Tuesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of precious yellow metal has increased by Rs 1, 900 per tola today. It was traded at Rs 215, 200 per tola on Monday.
Similarly, the price of silver has increased by Rs 20 and is being traded at Rs 2, 575 per tola today.
Share market to remain closed until Sept 21
Even as daily life gradually returns to normalcy after last week’s unprecedented violence and arson triggered by the Gen Z protests, the country’s stock market will remain closed for another week. The Nepal Stock Exchange (Nepse) has announced that secondary market trading will not resume until Sept 21, citing ongoing instability and investor concerns.
Trading had already been suspended since Sept 9 after police crackdowns on protesters a day earlier left nearly 20 people dead. The protest and the resulting wave of destruction led Nepse to extend the trading halt, in line with the Securities Act, and with the approval of the Securities Board of Nepal (Sebon), said an official from the stock exchange.
Although the initial suspension was only until Sept 17, trading will reopen on Sunday only as the trading floors of Nepse open for trading from Sunday to Thursday only.
Earlier, different associations of stock market investors had urged the regulator to keep the market shut, warning that reopening during a fragile period would lead to irrational decisions and heightened volatility. In a joint statement, Share Investors Association Nepal, Nepal Capital Market Investors Association, and Independent Investors Association said the prevailing climate had seriously affected investor confidence and that halting trading was the prudent safeguard at the moment.
Market analysts have also said that since capital markets are highly sensitive to external shocks, even minor developments can trigger sharp swings. They cautioned against reopening amid ongoing protests.
Before the suspension, the Nepse index had fallen for five consecutive days, closing at 2,672.25 points on Sept 8. Nepse has mostly traded in negative territory since hitting a four-year high of 3,002.07 points on July 29. Since then, the benchmark index has already fallen by 329.82 points. Over Rs 530bn in market value has been wiped out since the last week of July when the bourse’s capitalization touched an all-time high of Rs 5,000bn.
