Can you believe it ! Most of us don’t have savings. The truth is most people live paycheck to paycheck and wonder how and where to put money for retirement, emergency or even enjoy a little luxury now and then. Not to worry! We are here to tell you how savings accounts can revolutionize your saving journey.
Having a savings account is an important financial milestone. You can use the savings account to save for various goals. We are here to walk the journey with you as we take an in-depth look at the best savings accounts. Before we get to it, let’s get a few definitions out of the way.
What is a savings account?
A savings account is an interest-earning deposit account that holds money that you don’t intend to use any time soon. Having a savings account is important because it helps you plan and stay on track with your personal finances. This account is different from other accounts because it does not allow you to write checks or make purchases.
You can sign up for a savings account with banks, SACCOs, investment groups, and even the latest entrants’ online banks.
How do savings accounts work?
If you have signed up for the 52-week savings challenge or any other challenge, the next step is to look for a convenient savings account to deposit your money. The bank or financial institution pays you a monthly interest for the money you save.
You can withdraw your money, but it’s not always easy to do so because most banks don’t provide debit cards for savings accounts. Depending on the bank, some impose a limit on the number of times you can withdraw. While others charge higher fees if you withdraw before the agreed timeline.
Features of a savings account
A savings account makes it simple to meet your savings goals and grow your wealth. These are the basic features of a savings account.
- An account is easy to open.
A savings account should be easy to open. Most banks allow you to open an account instantly online.
- No minimum balance or deposit.
- No monthly service fees.
- This allows you to transfer the money between accounts.
- The account should be insured by the Kenya Deposit Insurance Corporation.
- It earns you interest every month.
Types of savings accounts
Below are the most common savings accounts.
A traditional savings accounts
Traditional banks offer a wide range of savings accounts with low rates and no monthly fees. You can manage them online, making it easy for you to access your money when you need it.
High yield savings account
High yield savings accounts are offered by online banks. The main advantages of these banks are that they offer a higher annual percentage yield (APY) and don’t charge maintenance fees.
Certificate of deposit saving account (CD)
This is a savings account with a fixed interest rate, a fixed term, and a fixed date of withdrawal. The interest rate is higher than the normal savings account. Funds are locked in a CD account for a period of three months to five years.
Specialty savings accounts
A specialty savings account is for a certain group of people. For instance, a kids’ savings account. Other types of specialty savings accounts are:
- Savings accounts for students
- “Health savings account”
Kenya’s Best Savings Accounts
To make it easy for you to choose a savings account, we look at the best savings accounts. Don’t stuff your money in a box, take it where it will earn interest and be secure. We will review the savings per bank and then provide a summary to help you choose the best.
Standard Chartered bank savings account
Standard Chartered is one of the most tech-savvy banks in Kenya. They have taken innovation to the next level. Here are the savings accounts they offer.
Safari savings account.
Safari saving accounts have the following features:
- Earn interest daily on your available balance. The interest earned is received at the end of each quarter.
- Free withdrawals
- Quarterly estatement is free.
- No minimum opening balance.
- Transact once per month.
See below for the interest you earn on your savings.
|Local Currency Amount Ksh||Interest per annum||Foreign Currency amount||Interest for USD||Interest for GBP|
|2,000,000-4,999,999||0.75%||5000-7,499||0.01% p.a.||0.01% p.a.|
|5,000,000-9,999,999||1.25%||7,500-9,999||0.02% p.a.||0.02% p.a.|
|10,000,000-14,999,999||1.75%||10,000-24,999||0.03%p. a||0.03%p. a|
|15,000,000-19,999,999||2.25%||25,000-49,999||0.04% p.a.||0.04% p.a.|
|20,000,000-24,999,999||2.75%||50,000-99,999||0.05% p. a||0.05% p. a|
|25,000,000-29,999,99||3.25%||100,000-249,999||0.05% p. a||0.05% p. a|
|30,000,000-49,999,999||3.75%||250,000-499,999||0.05% p. a||0.05% p. a|
|Above 50Million||4.25%||Above 500,000||0.05% p. a||0.05% p. a|
NCBA Bank Savings account
NCBA bank offers the premier savings account and the gold savings account. You can monitor and access your account through their online and mobile banking portals. Let us look at what they offer.
Gold savings account
- You need to have at least KSH 2,000 in your account. Earn interest on amounts over KSH 5000.
- No account fees.
- Each month, you are entitled to one free withdrawal.
- Available in Kenya shilling and major currencies.
- Earn an interest rate of 1.5 to 6% p.a.
Premier savings account
- As the name suggests, this account is for premier savers. Here are the features:
- You must have a minimum operating balance of Ksh 100,000.
- Borrow 95% of your savings.
- Free transfer to your current account.
- Interest is calculated daily, and you receive it every quarter.
- Free quarterly estatement
- No cheque book or ATM.
- Earn an interest of 1.5% to 6% p.a
Based on the 52-week savings challenge, this is a real-life scenario for these savings accounts.
KCB Savings accounts
The KCB bank offers you two savings account options. The Simba savings account and the Goals savings account. Let us at what you can expect for each savings account.
Simba savings account
Simba is a Swahili word that means “lion.” If you sign up for this account, you can expect the following.
- You can earn 5% p.a. on your savings.
- No monthly fees.
- One withdrawal per month.
- No charge on deposits.
- Opening and operating balance of KSH 1000
Goal savings account
As the name suggests, the Goals savings account is tailor-made to help you save and achieve your goals. You lock your money in a safe for a period that suits your needs. The minimum lock period is 6 months. Here are the features of a goal savings account:
- Lock in your savings for the desired period, from 6 months to 5 years.
- Get 100% of your savings in loans.
- Transfer money into the account at a charge.
- Opening balance of Ksh 1000
- No monthly maintenance fees.
The I & M Bank
I & M offers you three main savings accounts. Curious? Read on and let’s learn. If your sights are on I & M bank, here are the accounts, you can expect.
Goalz savings account
The goalz savings account is tailored for people to save for a specific goal. Here are the main features of this account.
- There are no charges or fees to open or maintain your account.
- Operating through online and mobile banking
- Open multiple accounts for specific goals.
- Ksh 1000 is the opening balance.
Online savings account
The I & M online savings account is for the tech-savvy. To open an account, visit the website here to open an account. Below are the features of the online savings account:
- Paperless account opening.
- Monitor and manage your account through I-click.
- Deposits made from other I & M bank accounts are free of charge.
Equity Bank is one of the most popular banks in Kenya. In fact, in 2021, it was the biggest bank in terms of assets. The bank has several savings products, but in this section, we look at personal savings accounts for adults.
- No minimum operating balance.
- Savings above Ksh 20, 000 attract higher interest, which is paid at the end of the year.
- No monthly charges.
- Access to mobile banking
- One free withdrawal every month.
Jijenge savings account
Jijenge is a Swahili word for empowerment. The account will help you save for your dreams and has the following features.
- KSH 300 is the minimum opening balance.
- You must contribute at least Ksh 300 per month.
- A minimum lock period of 6 months with no partial withdrawals.
- No monthly charges.
- Access to 90% of your savings in loans
Bank of Africa Savings account
Bank of Africa is ranked 15th out of 42 commercial banks in Kenya, with assets totaling 42.99 billion.BOA offers savings accounts to groups and individuals. In this section, we review the personal individual savings account.
BOA saving individual
The BOA savings account has the following features:
- Interest for account balances of Ksh 20,000 and above
- Over-the-counter withdrawals are permitted once per quarter.
- Access up to 80% of your savings in loans.
- KSH 5000 operating balance
- No monthly charges.
- Earn 1.5% p.a. in interest.
Tarajio savings account.
Tarajio is a Kiswahili word for “expect”. The account is backed by a current account and allows you to save based on your capability. Here are the features of the Tarajio savings account.
- No opening charges.
- You must save via standing orders from the current account. The minimum number of payments you should make is 12 over 12 months. Below are other features of the savings account.
- Standing orders should be Ksh 2000 and above.
- Earn an interest rate of 1% p.a.
- Access loan amounting to twice your savings. The loan duration is 48 months.
Cooperative Bank is the third-largest bank in Kenya with an asset value of KES 536.9 billion. The bank offers the hekima savings account, which has the following features:
Hekima savings account
- There is no minimum opening or operating balance.
- No monthly maintenance fees.
- Interest on the account is calculated daily and paid quarterly.
- One withdraws quarterly.
- Receive regular account statements
Absa Bank Limited
Absa is home to the award-winning Zidisha savings account, a fixed currency savings account, and the target account. The bank also offers a junior savings account and a fixed deposit currency account. In this section, we look at the features of savings accounts.
Zidisha savings account
- No minimum balance.
- Interest earned is paid quarterly.
- Earn a bonus when you achieve your goals.
- Fixed interest rates on your savings
Target savings accounts
Target savings account is the perfect account to help you achieve your goals. If you want to save towards your education, or buy a car or house then sign up for this account. Here are the features of this savings account.
- Target period of 1 to 10 years.
- No maintenance fees.
- It comes with an insurance cover that contributes to your savings in case of death or permanent disability. The insurance cover contributes to the savings until the set goal is achieved.
Foreign savings account.
The foreign savings account has the following features:
- There are no account fees.
- When your account balance exceeds 5000 USD or GBP, you will be eligible for interest.
- There are no minimum account balances.
Twin reward savings accounts
The twin reward account earns interest on the available balance. These are the additional benefits of this account.
- Interest is paid into the account monthly.
- You can withdraw funds without losing interest.
- Manage the account via mobile and online banking.
Use our savings calculator to see how much you will earn from the savings account of your. This calculator works best for those who save monthly. Note: Any interest you earn is subject to a withholding tax of 15%. Deduct 15% from the interest you will calculate below.
The best savings account should be easy to automate, earn you a decent interest and keep your money secure. Do your research and get the best savings account.