Professionals working for various companies have their salaries processed through various channels. Some use banks, others Saccos while others still issue cheques for employees to bank in their respective financial institutions. With mobile money gaining currency, some employers are paying salaries through services such as M-Pesa.
Choosing a bank through which to process your salary can mean a lot of things, financially speaking. That’s why when you get that confirmation letter for a job, you need to start thinking seriously about your bank – is it just a conveyor belt for your salary or does it provide other value-added services to improve your financial situation.
Co-operative Bank of Kenya, for instance, has positioned its salary account into a three-in-one solution. Besides being a salary account, the accountholder at Co-op Bank has access to personal loans as well as mobile loans. This account is ideal especially for teachers and those working in government and state organizations.
“You can reduce your mid-month cash crisis by having access to cash advances and personal loans with Co-op Salary Account,” the bank says. “This is a transactional account designed to facilitate salary processing. It’s targeted at employees and it is arguably the best salary account in Kenya.”
The Co-op Bank Salary Account comes with a personal accident insurance cover to newly employed workers, making it attractive to public servants as accident cover is a requirement for them to be employed by government.
Newly recruited teachers will get a mobile loan on the spot of between Ksh1,0000 and Ksh500,000 to facilitate them in settling down, according to Co-op Bank.
Opening a salary account is easy and once you start processing your salary, you become eligible to apply for a personal loan of up to Ksh8 million after six months for big projects such as buying a house or buying a vehicle. As the bank says, this account makes your salary work for you.
What’s more, the repayment period has been increased from 84 months to 96 months.
- Minimum opening balance – Nil
- Minimum operating balance – Nil
- No Monthly Maintenance fee
- Salary processing fee applicable
- Access to Loan products such as Personal Loans and Cash Advances.
- Debit card
- Access to a credit card
- Identity card/ passport- original and copy
- Passport Photo (to be taken at the branch)
- Letter of introduction from Employer/ Employment Letter
- Ksh600 for the Debit Card
- Copy of KRA PIN
You can open the salary account at the nearest branch of Co-operative Bank branch.