National Bank of Kenya will continue to pay up to 7% interest on customers’ deposits despite the requirement being repealed by the Finance Act 2018.
National Bank Managing Director and Chief Executive Officer Wilfred Musau said the move is aimed at appreciating the lender’s customers at it marks its 50th anniversary.
“In the Finance Act 2018, the Banking Act was amended by repealing the requirement for a minimum interest on deposits. However as a bank, we have chosen to provide full benefits to our existing and new Savings Account customers by giving them up to 7% in interest on all Savings as we celebrate our 50th birthday,” said Musau.
“Amid the high tax regime, we believe that this is a significant positive step towards providing enhanced returns to our customers,’’ added Musau, who was speaking while a campaign for mobilising savings from the public and other institutions in a bid to boost its customers deposit base.
While passing the Finance Bill 2018, MPs declined to remove the interest rate cap, which stands at 4 basis points above the Central Bank Rate, but agreed to repeal the lower cap. Finance committee chairman Joseph Limo, while tabling the report in the House, said the move would allow banks and customers to discuss about interest rate to be given on savings.
Musau said National Bank appreciates the importance of promoting domestic savings to sustain the fast economic growth that the country continues to experience.
The tiered rate will see savers earn 1% for deposits between Ksh 5, 001 and Ksh 50,000, 5% for savings between Ksh 50, 001 and Ksh 2, 000, 000, and 7% Ksh 2, 000, 001 and above.
National Bank boasts of 76 branch outlets across the country, 132 ATMs, over 1500 agent banking outlets, and electronic channels of mobile and internet banking.
The bank offers diverse affordable products that include National Ahadi Savings account, which allows customers to save Kenya Shillings, US dollars, GBP and Euros.
“Our National Vision Account is also a great first step for teaching children to be responsible with money. The account can be used to save children’s immediate and future school fees needs,” Musau said.