Fixed deposits in Kenya are proving to one of the best ways for saving and growing your money.
A lot of people especially the once who are looking to invest are opting for fixed deposits since the rates have proven to be one of the safest ways of growing your money with fixed interest rates.
Are you an upcoming investor or just a regular person looking to invest your money and don’t know how to. Well, stick around.
In this article, I will take you through the different and best-fixed deposit accounts in Kenya, but first, let us understand what is meant by when we talk about Fixed Deposits.
A fixed deposit account is an investment account that requires a fixed amount of money to be invested for a fixed period at a fixed rate of interest.
How does a Fixed deposit account work
Fixed deposits are not like any other bank account. For this one, you can deposit money for a short period of 7 days and up to 10 years.
In a fixed deposit, you are not allowed to access the money whenever you want to until the agreed time between you and your bank elapse.
Best fixed deposit rates in Kenya
I&M Bank Fixed Deposits are accounts opened for fixed contracted periods, currently ranging from 1 month to 1 year. They earn interest at attractive rates, thus providing customers with long term savings growth opportunities.
1. Fixed Deposits-KCB
KCB Bank has one of the most competitive fixed deposit rates for both local and foreign currencies on various tenors, specific to your requirements.
Money deposited in the fixed deposit rate account must remain in the account for the period signed for between the bank and the client.
KCB has a fixed deposit rate of up to 6% p.a. on your savings.
With KCB With the KCB fixed deposit rate account, you have the chance to determine the returns you get from your investment. Since the investment amount is not limited; you get to decide the initial amount to save.
2. Cooperative Bank of Kenya
The cooperative bank of Kenya investment account is where a customer deposits a specified amount of money for a certain/fixed period of time.
The period ranges from 1 to 12 months.
The customer is paid a competitive rate for the period the money is held in the account.
3. Equity Bank
The minimum fixed deposit for the Equity Bank is 6.65%.
The rates were adjusted to match that od the Central Bank of Kenya of 9.5%. Equity has saving deposits, of a minimum of interest of 70% of the CBR, hence setting its current fixed deposit rates at a minimum of 6.65%.
4. Barclays Banks
Barclays Bank happens to be one of the banks with best-fixed deposit rates.
With Barclays the higher amount you save with them, the higher the interest you earn. The minimum deposit amount for opening this account is Kshs 50,000, and you get to invest the money for an agreed period of your choosing.
Interest payments can be made directly to a Barclays account of your choice.
Barclays bank fixed deposit account is available in both Kenyan currency and foreign currencies.
The bank account can also act as security if you plan on taking a loan from the bank.
5. National Bank of Kenya
The National Bank has two types of fixed deposits.
- The ordinary fixed deposit account: In this particular account the minimum you can deposit is KES 20,000 It allows investments of different durations hence serving the majority of Kenyans.
- High yield fixed deposit account: This is for individuals who are interested in investing from KES 1Million and above. This is hence termed for the chosen few.
Customers who desire to invest for certain periods between 1month to 12 months their interest rates will differ by the amount deposited for investment by the individual.
6. Family Bank
Family Bank has one of the competitive deposit rates among banks.
With low minimum deposit amount of KES. 30,000 you can access fast loans of up to 90% of the deposit amount.
Individuals have flexible terms of investing of 1, 3, 6, 9 and 12 months
Read more: List of Microfinance Institutions in Kenya
7. Standard Chartered
The Standard Chartered Bank fixed deposit interest rates is one of those calculated on a daily basis and paid on the maturity date.
Compared to other banks the minimum deposit you can deposit is KES 100,000 which can then be saved over a fixed duration of one, three, six, or twelve months.
In case of an overdraft, the account can act as security or in case you want a loan.
Your returns are guaranteed, and they can be re-invested upon your request or even earn interest as per tenure. Your statements and balance information are also available on request.
8. I&M Bank
I & M Bank offers fixed deposit accounts for fixed contracted periods ranging from 1 month to 1 year. If you are in search of attractive savings growth opportunities, I & M is an excellent choice because they offer attractive interest rates. You can open your fixed deposit account in different currencies including Kenya Shillings, Dollars, Euros, South African Rand, and GB Pounds. The minimum deposit is Ksh. 50,000. I&M interest rates vary depending on the amount and tenor.