Banks Offering More Than 10% Interest on Savings

One of the important healthy money habits is the saving habit. However, merely just saving is not enough to help you achieve your financial goals. Currently, in Kenya, the rate of inflation stands slightly below 7% meaning that even if you save diligently, your money will lose at least 7% in value. Hence, even when diligently saving you will be stuck in the cartwheel.

However, you can find other ways of earning interest, that in the least protect your savings from being eaten away by inflation.

Hence, this article will discuss Kenyan banks that are offering more than 10% interest on savings.
Read Also: Savings Account Strategies: Growing Your Wealth Safely

Songa Mbele Na Kingdom Bank

Songa Mbele na Kingdom Bank is a fixed deposit account by Kingdom Bank aimed at both individuals and corporates who are interested in growing their money. 

Through this fixed deposit account you can either have a call deposit option or you can have a fixed deposit option. A call deposit option allows you to withdraw your money whenever you want. However, the minimum number of days for depositing your money is seven days. Therefore, you cannot withdraw before seven days. Furthermore, you have to issue a 24-hour notice prior to withdrawal.

On the other hand, a fixed deposit option allows you to deposit your money for a fixed amount of time. Your money will be locked in your account for the specified period and you cannot withdraw it before maturity.

The Songa Mbele fixed deposit account can earn you an interest of up to 10% provided your minimum balance in the account is Ksh5,000.

To apply for this account you can fill out an online form or visit one of their 19 branches across the country. Account transactions can also be done through internet banking or by visiting a physical branch. 

The account is suitable for both individuals and companies. If you are an individual all you need is your Identity Card or Passport and your KRA pin and you can open an account. However, for companies you will need a copy of each company director’s KRA pin, Memorandum of Articles of Association and Registration Certificates as well as Directors Resolutions.

Kingdom Bank is a Co-operative Bank of Kenya subsidiary.

>>>>> Kenya’s Top Savings Accounts

Absa Digital Savings Account

The Absa Digital Savings Account is among the savings accounts that offer 10% and above interest rates per annum. The goal of the account is to encourage people to save to achieve their financial goals. Hence the account is fully digital. You can easily open the account and transact from the comfort of your phone or computer without ever going to an Absa physical branch.

The interest rate for the account is paid monthly, hence you can see the way your money is growing month on month. It does not have any charges and does not have minimum balance requirements.

Since you open the account digitally you will need to have several things with you to ensure frictionless signup. Have your Kenyan Identity card with you as well as a photo or PDF of your signature on a white background. Additionally, ensure that the front camera of the device you are using is enabled, if using a desktop, ensure the webcam is on.

Absa Bank Kenya PLC, formerly Barclays Bank Kenya is part of an African financial services group, Absa Group Limited.

Umba Fixed Deposit Account

Umba fixed deposit account is a savings account by Umba, a digital bank with operations both in Kenya and Nigeria. 

The Umba fixed deposit account offers some of the highest interest rates in the market going as high as 16%. The amount of interest you earn with this account depends on how long you are willing to commit your funds. The longer you deposit your money for, the higher the interest you earn.

If you deposit the money for only 30 days, you earn an interest of 12%. Twelve percent is the least interest you earn with an Umba fixed deposit account but it is still very competitive. If you lock in your money for 90 days, your interest earning rate increases to 13%. To earn 14% interest on your deposit you have to leave your money deposited for half a year, 180 days. The second highest rate 15% is earned by saving for 270 days while the highest interest rate for this account 16% is earned by investing for 360 days.

The account does not have any withdrawal fees, maintenance fees, and statement fees. There is also no limit to the withdrawal frequency.

However, there is a minimum opening balance of Ksh5,000 and the interest is paid out at maturity. 

Since Umba is a digital bank they only operate online, and you access your account through their mobile application. The requirements for signing up are only your National ID. 

Stanbic Savings Account

Stanbic Bank has a savings account that offers competitive interest rates where one can earn up to 14% interest on their savings. This savings account is best for individuals, chamas, businesses, and corporations. To sign up you only need to enter your details on Stanbic Bank’s website and you will be guided through the next steps.

Interest earned in this account is calculated daily but paid out monthly. The monthly payments are deposited into your account on the first day of the subsequent month. Interestingly, if you save in the account for a year without any withdrawals you earn an extra 1%.

I&M Fixed Deposit Account

The I&M fixed deposit account offers different rates depending on the amounts you deposit and the duration of the deposits. Deposits that attract more than 10% interest are above Ksh50,000 and the deposit period is more than three months.

This account has different tiers of interest earnings ranging from Ksh50,000 to  Ksh5 million,  Ksh5 million to  Ksh10 million,  Ksh10 million to  Ksh50 million,  Ksh50 million to  Ksh100 million, and Ksh100 million and above.

As you go up with every tier, your interest increases. So does it with the periods which range from 7 days, one month, three months, six months to one year.

Wrapping Up

Saving your money is important. But as much as you are saving, you cannot just let your money be saved without at least earning an interest. Discussed are the savings accounts where your savings can earn you at least 10%. This will protect your money against inflation.