National Bank of Malawi Raises Oct 2026 Reference Rate

In Short

National Bank of Malawi has increased its October 2026 reference rate to 21.40%, effective October 5. The September 2026 reference rate was 21.20%.

What Happened

National Bank of Malawi published an update showing a revised reference rate for October 2026.

A reference rate is a benchmark percentage banks use to price other products, like loans, overdrafts, and sometimes negotiated deposits. When it rises, borrowing costs can move up too, depending on the customer contract.

The bank said the October 2026 reference rate is now 21.40%, and it takes effect from October 5, 2026.

The same notice also lists the bank’s deposit interest rates, which are the rates paid to customers who keep money in savings and deposit accounts.

Savings deposit rates include Savings Bond at 12.00% per year, Ordinary Savings at 5.75%, Special Savers at 4.00%, Student Serve at 5.00%, and Fiesta Save at 8.75%.

Notice deposit rates are 5.00% per year for a 7 Day Call account and 6.00% for a 30 Day Call account. A call account is a deposit account where funds can be withdrawn after giving notice, like a short heads-up period.

Fixed deposit rates are 6.50% for 2 months, 7.50% for 3 months, and 8.00% for 6 months. The 9 month and 12 month fixed deposit rates are listed as negotiable.

The current account rate remains 0.00% per year.

Why It Matters

For startups and SMEs in Malawi, a higher reference rate can feed into higher lending rates. That can affect working capital lines, term loans, and overdrafts used to manage cash flow.

For consumers, the deposit table shows where savings returns sit relative to the reference rate. It also signals how banks may balance attracting deposits while managing funding costs in a high interest-rate environment.