Ethiopian Bank Savings & Fixed Deposit Interest Calculator 2026 (CBE, Awash & Private Banks)
Calculate interest earnings on regular savings accounts and fixed time deposits (FD) across Ethiopian commercial banks with 5% statutory withholding tax deduction in ETB.
Ethiopia · Ethiopian Bank Interest Calculator
Methodology
Commercial banks in Ethiopia (including Commercial Bank of Ethiopia CBE, Awash Bank, Dashen Bank, Bank of Abyssinia, and Cooperative Bank of Oromia) offer deposit accounts regulated by National Bank of Ethiopia (NBE) monetary directives. Regular passbook savings earn a mandatory minimum interest rate of 7.0% per annum (with promotional rates reaching 8.0% to 10.0%). Fixed Time Deposits (FD) for terms of 3, 6, 12, or 24 months earn higher preferential annual interest rates ranging from 12.0% to 18.0%. Under the Federal Income Tax Proclamation, interest paid on bank deposits is subject to a 5% statutory withholding tax deducted directly at source by the bank, yielding the net cash interest received by the depositor.
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User-provided inputs
This calculator uses only the values you enter. It does not automatically apply tax law, statutory deductions, lender fees, or live exchange rates.
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Formula basis
The formula is shown openly and no country rate is inserted automatically.
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Your estimate
AfricalHub is an independent private platform not affiliated with any government agency. Calculations are for educational planning only. Verify official filings with the relevant revenue authority or a qualified professional.
Indicative Ethiopian Commercial Bank Interest Rates
| Deposit Facility | Typical Annual Rate (p.a.) | Payout Frequency | Tax Treatment |
|---|---|---|---|
| Regular Passbook Savings | 7.0% – 9.0% | Monthly / Semi-Annually | 5% Withholding Tax |
| 3-Month Fixed Time Deposit | 10.0% – 13.0% | At Maturity | 5% Withholding Tax |
| 6-Month Fixed Time Deposit | 12.0% – 15.0% | At Maturity / Semi-Annual | 5% Withholding Tax |
| 12-Month Fixed Time Deposit | 14.0% – 17.5% | Monthly / Annual / Maturity | 5% Withholding Tax |
| 24-Month Fixed Time Deposit | 15.0% – 18.0% | Annual / At Maturity | 5% Withholding Tax |
| Child / Youth Targeted Savings | 8.0% – 10.0% | Monthly Compounding | 5% Withholding Tax |
Sources
User-provided inputs
This calculator uses only the values you enter. It does not automatically apply tax law, statutory deductions, lender fees, or live exchange rates.
Frequently asked questions
What is the current bank savings interest rate in Ethiopia?
The National Bank of Ethiopia (NBE) mandates a minimum savings interest floor of 7.0% per annum. Most commercial banks offer between 7.0% and 9.5% on regular passbook savings, and up to 18.0% on long-term fixed deposits.
How much interest does 100,000 ETB earn in an Ethiopian bank?
At an 8% regular savings rate, 100,000 ETB earns 8,000 ETB gross interest per year (7,600 ETB net after 5% withholding tax). On a 12-month fixed deposit at 16%, it earns 16,000 ETB gross (15,200 ETB net).
Is interest earned from Ethiopian banks taxed?
Yes. Under Schedule D of the Federal Income Tax Proclamation No. 979/2016, interest earned on domestic bank deposits is subject to a 5% final withholding tax deducted automatically at source by the bank.
What is the difference between simple and compound interest in Ethiopian banks?
Simple interest calculates returns only on the original principal deposit. Compound interest calculates returns on the principal plus accumulated past interest, increasing overall yield over multi-year terms.