In this article, I will list financial institutions with the BEST Fixed deposit rates in Kenya.
Are you an upcoming investor or just a regular person looking to invest your money and don’t know how to? Today you will learn more about Fixed Deposits.
Many people, especially those 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.
A fixed deposit account is an investment account that requires a fixed amount of money to be invested for a specified period at a fixed rate of interest.
Best fixed deposit rates in Kenya
Here is a list of banks with the best-fixed deposit rates in Kenya in 2020
1. KCB Bank
KCB Bank has one of the most competitive fixed deposit rates for 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 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’s investment account is where a customer deposits a specified amount of money for a specific/fixed 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 Equity Bank is 6.65%.
The rates were adjusted to match that of the Central Bank of Kenya of 9.5%. Equity has savings 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 (ABSA)
Barclays Bank happens to be one of the banks with the best-fixed deposit rates.
With Barclays bank fixed deposit rates, the higher the amount you save, 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 interested in investing from KES 1 Million and above. This is hence termed for the chosen few.
For customers who desire to invest for specific periods between 1 month 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 a 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
7. Standard Chartered
The Standard Chartered Bank fixed deposit interest rates are calculated daily 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 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 search for attractive savings growth opportunities, I & M is an excellent choice because they offer attractive interest rates.
You can open your FDA 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.
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 cannot access the money whenever you want to until the agreed time between you and your bank elapse.
Do you know any other bank with reasonable fixed deposit interest rates in Kenya? Let us know in the comments.