After a number of Cambodian financial institutions (ABA, LOLC and Amret) cut their deposit rates last month, it’s now Amk’s turn to cut. This decision seems to have been triggered by the cuts announced by Amret just a week ago. After Amret cut its rates, Amk must have felt that its own rates were too high in comparison. The microfinance institutions Amret and Amk are direct competitors.
The biggest cut is on deposits with a 2-year term and monthly payout: no less than 0.8 percentage points! It’s followed by a 3-year USD deposit with monthly payout, which has been reduced by 0.75 percentage points. Amk’s rates for fixed deposits in USD are now significantly lower than Amret’s, as you can see in our line graph comparison.
Check out the table below to see all the changes Amk has made to its fixed deposit rates (note: Amk doesn’t offer deposits with terms longer than 3 years).
| Term | Currency | Monthly Payout | Change | Maturity Payout | Change | ||
|---|---|---|---|---|---|---|---|
| 6 months | USD | 5.75% | 5.25% | -0.50% | 7.00% | 6.50% | -0.50% |
| KHR | 5.75% | 5.50% | -0.25% | 7.00% | 6.75% | -0.25% | |
| 9 months | USD | 6.25% | 5.75% | -0.50% | 7.50% | 6.80% | -0.70% |
| KHR | 6.25% | 6.00% | -0.25% | 7.50% | 7.00% | -0.50% | |
| 1 year | USD | 7.30% | 6.80% | -0.50% | 7.80% | 7.60% | -0.20% |
| KHR | 7.30% | 7.00% | -0.30% | 7.80% | 7.80% | — | |
| 2 years | USD | 7.80% | 7.00% | -0.80% | 8.20% | 7.75% | -0.45% |
| KHR | 7.80% | 7.30% | -0.50% | 8.20% | 8.00% | -0.20% | |
| 3 years | USD | 8.00% | 7.25% | -0.75% | 8.30% | 8.00% | -0.30% |
| KHR | 8.00% | 7.50% | -0.50% | 8.30% | 8.25% | -0.05% | |
Note that Amk also cut its fixed deposit rates just 2 months ago.
KHR and USD deposit rates now different
Amk used to offer exactly the same interest rates whether a deposit was in US dollars or Khmer riel. Not anymore: deposits in KHR now earn a slightly higher rate (typically 0.25 percentage points) than deposits in USD.