Nepal Bank – information about money

In another post we have informed you about Nepal bank accounts. How to open one and what kind of issues you can expect. In this post we inform you about bank interest rates and ways to get your money out of Nepal.

Nepal bank interest rates

Nepal interest rate exampleThe Nepal bank interest rates are pretty high. As per Apr ’19 you can get a bank interest rate of 5 to 6% for a 1 year fixed deposit. This usually means that you can’t touch the money for a year but you can ask for the conditions. Keep in mind that Nepal has an inflation of in between 5.6% – 6.5%.

Finance company

Another option to checkout instead of a Nepal bank, which is most popular under Nepalese citizens, is one of the many finance companies. A finance company offers a 14% interest rate on a 1 year fixed deposit. It could be that conditions prohibit this for foreigners but when you have contacts at a finance company you might be able to open an account. Another solution can be to take a dual account with a trustworthy Nepalese citizen, or only on the name of a trustworthy Nepalese citizen to be sure that the money can be withdrawn later on.

Ways to get money out

NIBL visa cardAs we have mentioned in the post about opening of a Nepal bank account, it can be complicated to get money out of Nepal. Of course, there are laws that prohibit ways to get money out of the country, but there are ways to get around it. One of the ways that is totally legal for Nepalese citizens who have a child studying abroad for which needs to be paid by parents. When you know someone like that, you can try to get your money out of Nepal by giving it to the parents and they manage a way to transfer it abroad. Although it should be going to the name of the Nepalese abroad of course.

Then there is a way of sending email to the bank manager or CEO and explain your situation. You had opened an account and deposited a certain amount which you never really touched or used. You can ask the manager of the bank for ways to get your money transferred to your foreign account and close your Nepalese account. This works out at least with some banks.

By ATM or Cash

One lakh rupees (100.000 NPR)As mentioned in the post about opening of Nepal bank account there can be complications with depositing cash. Still, it is possible to open a euro or dollar account. For more info about that we point you to that post. There is a 5000 dollar cash max that you can bring out by airport. This you can do yourself but you can also do that with others. In case you travel with family or friends, you can let them carry the same max amount. A way to bring out multiple of the allowed amount per person. Get the conditions first if you want a Nepalese citizen to do that for you.

Then there is the option of getting your money out of the country by using an ATM abroad. Make sure that your ATM card of your euro or dollar account works abroad and learn about the maximum amount that you can withdraw from an ATM abroad daily. Just another way to get around the rules legally.


$20 bill frontWe can inform you about a way to deposit too. In case you might have difficulties of some sort to deposit your rupees cash and/or dollars/euros into your Nepal bank account. Try it by others. For example travel agencies. They deal with tourist bookings and are able to refund by bank transfer. So you can try to find a person, agency or organization that has a euro/dollar account too. You give them your NPR (rupees) or euros/dollars in cash and let them transfer that amount from their account to your account. Once it’s on your account, you’ll be able to get it out of the ATM abroad.

Just a simple way to get your money out of the country. Even a sort of money laundering way for people who work in Nepal and get paid in cash for tax evasion and no work permit/visa reasons. There could be some maximum limit on the amount though. Probably you won’t be able to do that with such huge amounts that would raise eyebrows both at the Nepalese side as well as your foreign account side, who might need to inform the law enforcement agency or tax office in your home country. Talking about a few thousand dollar should be on the safe side though.

Power outage

ATM exampleOne more thing to inform you about is the use of an ATM within Nepal. Power cuts used to be common and can still happen from time to time. If you are unlucky, the power gets cut at the moment you want to withdraw money from an ATM. When the transaction is done and you wait for your money. The money might not come out and also your bank card might stay in the machine. Contact the bank of the ATM machine immediately and convince them that you did enter the transaction but you didn’t get your money and your bank card. Bring your passport and as much other evidence as possible.

Getting your card back should be the easy part, but getting your money can be a real struggle. Even when the computer records show the transaction and the failure of giving money. The bank of the ATM machine needs to contact the bank of your account or the other way around. When your account is foreign, the issue might be time consuming and/or unsolvable, meaning the money is lost. Deducted from your home account but not issued by the ATM or its bank. Even between two Nepalese banks this procedure to get the money back on your account takes around 3 weeks. The only suggestion is to look what time it is before using the ATM. Scheduled power cuts are always on a full or a half hour.



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