KCB Group, the largest lender by market share, has rolled out a products to mobilise savings as bid to to grow stock of cheap deposits in the rate cap era.
The lender said yesterday the Goal Savings Account will pat an interest of 8.5 per cent, which is above the minimum seven per cent under the Banking (Amendment) Act, 2016. KCB has bid to take over state-owned National Bank of Kenya as it targets to increase government deposits.
“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,” KCB's director for retail banking Annastacia Kimtai (pictured) said.
The account, minimum opening balance is Sh1,000, enables customers to lock their savings for a minimum of six months and a maximum of five years.
Kenya's gross savings rate was estimated at 7.3 per cent in December 2016, compared with 7.4 per cent in the previous year, data from CEIC, a global data firm in the UK, shows. Kenya trails neighbouring Uganda and Tanzania which crossed the 20 per cent mark, even though their per capita income is significantly lower.
