, NAIROBI, Kenya, June 20 – KCB Bank has introduced a new savings account aimed at driving up the savings culture in the country.
KCB Goal Savings Account allows customers to set and lock a target, make deposits towards achieving that target over a specific period of time while earning a high interest determined daily.
Customers can lock their savings for a minimum period of six months and a maximum of five years. The minimum opening balance is set at Ksh1,000, giving room for a wide scope of customers above 18 years of age.
Additionally, customers will be allowed to borrow up to 100% of their saving in the account and may also opt for a life insurance policy. The policy will secure the achievement of the target amount in case of inability to progress deposits under unfortunate circumstances.
Speaking during the launch of KCB Goal Savings Account, KCB Director Retail, Mrs. Annastacia Kimtai said this will give potential savers an opportunity to determine their savings goals.
“Goal Savings is for you to plan your dream investment like buy a piece of land, plan for your children school fees or even your annual holiday can now be to any exotic location”, she said.
Customers will earn an interest rate of up to 8.5 percent on savings, which is above the current market rate of 7.0%.
“We are confident that the Goal Savings account secures a stronger future for Kenyans”, said Mrs. Kimtai.
Kenya’s Gross Savings Rate stood at 7.3 percent in December 2016. By contrast, neighboring Uganda and Tanzania have already crossed the 20 percent mark.
Most of Africa savings rates are relatively low, around 17 percent of gross domestic product.
According to the World Bank, the culture of savings can only be stimulated by the government, households and companies which explains the reason why KCB Bank has introduced the account whose returns are above the current market average of 7.0 percent.