Compare everyday liquid savings, non-interest current accounts, and compound-interest fixed deposits - including NRB senior citizen and remittance bonus rates.
Commercial banks and financial institutions in Nepal offer three foundational deposit categories: Current accounts for high-velocity business transactions, Savings accounts for liquid emergency funds and day-to-day spending, and Fixed Deposits (FD / Term Deposits) for locking capital to earn guaranteed compound interest over a predetermined maturity timeline.
Millions of Nepalis leave large cash sums (NPR 5 Lakh to 20 Lakh) sitting idle in ordinary savings accounts yielding 3%-4%, while official inflation runs at 6%-7%. Over 5 years, this purchasing power loss exceeds tens of thousands of rupees. Conversely, locking money needed next month into a 3-year FD results in steep penalty charges when broken early. Matching cash needs to the correct deposit instrument preserves liquidity while maximizing yields.
Money needed within 30 days belongs in high-interest liquid savings. Money earmarked for goals 6 months to 5 years away (e.g., child tuition, house down payment) belongs in a Fixed Deposit.
On the 1st of every Nepali month, all Class A banks publish unified interest rates in national dailies. Compare quarterly compounding vs monthly payout options.
If a family member remits funds from the Gulf, Korea, or abroad, request a specialized "Remittance Fixed Deposit" for an automatic +1.0% bonus yield. Seniors (60+) often qualify for an additional +0.5% premium.
Choose "Cumulative" (reinvesting quarterly interest) to maximize compound growth. If you need monthly cash flow for retirement living, select "Monthly Interest Credit".
| Feature | Current Account (Chalu) | Savings Account (Bachat) | Fixed Deposit (Muddati) |
|---|---|---|---|
| Target User | Businesses, Pvt Ltd, Traders | Salaried individuals, Students | Long-term savers, Retirees |
| Interest Rate | 0% (Mandated by NRB) | 2.5% - 4.5% per annum | 6.5% - 9.5% (higher for remittance) |
| Withdrawal Restrictions | Unlimited transactions & cheque leaves | ATM limits (NPR 1 Lakh/day) | Locked until agreed maturity date |
| Tax on Interest | Not applicable (Zero interest) | 5% Final Withholding Tax | 5% Final Withholding Tax |
| Premature Exit | Free anytime | Free anytime | Penalty fee: 1.0% - 1.5% interest reduction |
In Nepal, NRB guidelines require banks to calculate savings account interest on the minimum daily ledger balance and credit it to the customer at the end of each Nepali quarter (Ashwin, Poush, Chaitra, Ashadh). Furthermore, banks must publish their deposit rates for the upcoming month on the last day of the current month. Since rate competition is active, a saver who compares monthly publications across Class A banks can lock in higher rates for 1 to 3 years.
Anuj kept NPR 18 Lakh in an ordinary savings account earning 3.25% interest for 14 months because he didn't want to commit to a lengthy bank contract. He earned only NPR 68,000 in interest while food inflation jumped 8%.
He structured an FD ladder: NPR 3 Lakh in a high-yield liquid savings account for emergencies, and NPR 15 Lakh split across three separate FDs (1-year, 2-year, and 3-year) at an average rate of 8.25% with quarterly compounding. His annual interest jumped from NPR 58,500 to NPR 1,23,750 - more than doubling his passive retirement income.
Goal & Dilemma: Sending NPR 70,000 monthly from Dubai to his family in Chitwan.
Initial deposit in Nepalese Rupees.
Nominal annual interest rate in decimal form (e.g., 0.08 for 8%).
NRB standard compounding 4 times per year.
Duration of the fixed deposit in completed years.
Flat 5.0% government withholding tax deducted automatically from earned interest.
Deposit NPR 10,00,000 in a 2-year FD at 8.0% interest. Maturity value before tax: A = 10,00,000 * (1 + 0.08/4)^(4*2) = NPR 11,71,659. Total gross interest = NPR 1,71,659. Net after 5% tax = 1,71,659 * 0.95 = NPR 1,63,076 net profit.
Putting emergency fund cash into a 3-year fixed deposit.
Keep 3 to 6 months of living expenses in an accessible high-yield savings account.
Depositing remittance cash into a regular FD without declaring foreign employment.
Provide foreign employment visa / passport stamp to claim the mandatory +1.0% NRB remittance bonus rate.
Letting an expired FD sit in non-renewing limbo.
Enable "Auto-Renewal" (Swachālit Navikaran) with principal plus interest on the FD application form.
Yes. Under NRB directives, you can borrow up to 90% of your FD value instantly at an interest rate typically 1.0% to 2.0% above your FD rate, without breaking the deposit.
Yes. The bank automatically deducts a flat 5.0% final withholding tax from your interest payout on behalf of the Inland Revenue Department (IRD).
An FD ladder divides your capital across multiple maturity periods (e.g., 1-year, 2-year, 3-year). Each year, one FD matures, providing liquidity or the opportunity to reinvest at higher rates.
Nepal Rastra Bank directives mandate that all Class A, B, and C banks must provide at least 1.00% additional interest on deposits opened by remitters and their dependent family members.
No. Under NRB directives, commercial banks are strictly prohibited from paying interest on Current Accounts.