The demand deposits in Kenya are types of bank accounts in Kenya used by investors without conscious thought of having invested. The investor must decide how they want to create and build their wealth and nest egg for the future.

What are demand deposits in Kenya

Demand deposits in Kenya are also known as call deposits. The investor does not have to give notice to withdraw their funds from the financial institution. The financial institution does not give high interest rates for demand deposits in Kenya.

Most demand deposit in Kenya accounts are charged monthly fees for maintenance. The interest rates in these demand deposits are usually lower than the bank charges especially, for small value investments. It is therefore in the interest of the investor to determine when they would require demanding or calling their deposits and if it is more than seven days, considering time deposits as an investment option.

The types of demand deposits that will be mentioned are savings accounts, money markets and current accounts. They are explained below

Savings accounts type of demand deposits in Kenya

Savings accounts are demand deposit accounts that are used by investors to accumulate funds to perform certain tasks. These accounts may also be used to build retirement benefits. The returns or interest paid on these time deposits are average. The savings accounts are considered a safe way of investing for the future.

Money market type of demand deposits in Kenya

Money market accounts are demand deposits where an investor trades in money and not stocks. The investor’s interest rate is not assured and it changes daily. These are seen as risky investments and the investor could loss even part of the principle amount invested. The bank charges minimal amounts for bank charges on these demand deposits.

Current account type of demand deposits in Kenya

Current accounts are also referred to as checking accounts and are demand deposits. The investor usually does not earn any interest for this kind of investment. The bank charges and fees vary depending on the type of checking account, for example, a private banking investor may have higher charges compared to an ordinary investor.

The advantage of demand deposits is that money can be withdrawn immediately. With the advent of mobile banking and ATM card services, the investor has access to their funds any time of day or night. Demand deposits are offered by all banks in Kenya. The rate of interest or return varies from bank to bank.

An investor has to decide the target and reason for the investment choice. It is advisable for an investor to talk to the bank officers and find out about the demand deposits in Kenya that will suit all their