Can you set aside your money for at least a year? Opening a KCB M-Pesa fixed-term savings account might be right for you to save money and take advantage of some of the best interest rates available, which are guaranteed, meaning you’ll know how much interest you will earn over the given time your money sleeps there safely.
KCB Mpesa is provided by KCB Bank Kenya Ltd to Safaricom M-PESA customers and its fixed savings account entails saving your initial deposit for a fixed period without making withdrawals and earning a fixed rate of 6.3% p.a over that time.
With a minimum deposit of Ksh500, Safaricom customers can open KCB Mpesa fixed savings account directly from their phones without going to the bank as after making the deposit, they can choose the length of their term from 1-12 months, the time in which their money will remain locked away while earning a fixed rate.
KCB Mpesa fixed savings account secures your money in a savings account for a set time, and the interest accrued is paid directly into your account at the end of the term. You just need to pay in a lump sum and leave it until your term ends because it does not allow regular deposits.
If you want to withdraw your savings early before the duration of the term ends, you have to forfeit the interest it earned during the time it remained locked, but there is flexibility because these withdrawals are instant to Mpesa.
Savers who wouldn’t want to give up interest after saving their money on a KCB Mpesa fixed savings account should opt for target savings, which also pays interest rates of over 6% p.a. It accepts an initial deposit amount of Ksh500 to open an account just like the fixed savings one but allows minimum contributions of Ksh50 thereafter.
However, when you want to access your savings, you’ll have to wait 1 or 2 days, and you cannot break the bank any day you make a deposit to the account.
The advantage of the two accounts is that the more you save, the higher your chances of getting a loan limit, which ranges from Ksh100 to Ksh1 million depending on how often you save and discipline and how you use Safaricom services like voice and data.
You must be a Safaricom Mpesa subscriber for at least six months before you can open a KCB Mpesa account. To open one, go to your SIM toolkit, select Loans and Savings, KCB Mpesa, and then activate.
READ: Instant KCB Bank to Mpesa Charges 2024
