In another customer focused approach, Kina bank has launched an on-line savings account that will pay monthly interest of up to 4 per cent a year.
The Tomorrow Savings Account will provide a major incentive for people to save towards that special future goal.
The bank’s Executive General Manager Banking, Lesieli Taviri, explained that current customers will be able to open the account with K50. The maximum balance is K250,000.
A range of fees have also been dropped for this account.
Interest will be calculated daily and paid monthly. Account holders will make up to 4% interest a year if they make at least one deposit within the month and no withdrawals throughout the year. The base rate is 1 per cent.
“People want to be rewarded for their hard work and saving. In the present low interest rate environment, they don’t always feel that, so we have responded very aggressively,” Ms Taviri said.
She said the high interest rate offered with the account would also help develop a savings culture toward a future goal, particularly with the structure of the account. This would benefit the individual and consequently the country.
“This can be the start of someone’s savings journey with Kina Bank as their partner. Furthermore, such a journey can be an example for others of the importance of providing for the future,” she said.
“For example the account could be ‘twinned’ with a standard transactional account for everyday use and the Tomorrow Account could be the pot of gold at the end of the rainbow. People will be able to monitor their balance, watch it grow and feel well rewarded for their efforts.”
Ms Taviri urged people to check their savings rates with other financial institutions and see if they matched Kina Bank.
“If your present bank is not rewarding you well enough, come to Kina Bank. We believe in creating competition,” she said.
The account can be opened online or at a Kina Bank branch.