What are demand deposits in Kenya

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The advantage of demand deposits is that money can be withdrawn immediately.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

How to Get the Best Bank Accounts in Kenya

A bank account in Kenya is a recording of all the financial transactions that happen between the customer and the banking institution. Banking in kenya has provided several types of bank accounts to cater to all.

One of the most important functions of banks is taking in deposits. This is according to the central bank of Kenya. People, on the other hand, also prefer to deposit their savings in the banks’, as they can earn interest and also avoid the danger of theft.

Types of bank accounts in kenya

Types of accounts on offer by banks vary but most banks work from the same script in their product offering

typesofbankaccountsinkenya

Cheque Bank accounts in kenya

A cheque account can also be referred to as a current account which is run in a transaction account. When money is deposited in this kind of account, the owner can withdraw it at any time. The choice of withdrawal amount and the number of times a customer wants to withdraw is left to the customer. Customers use cheques leafs to withdraw cash or make payments to others or making purchases. ATM cards can also be used. Very few banks pay interest on these types of accounts but customer pay banks what is commonly known as bank charges. These charges are levied by the bank to the customers for use of the banking facilities. A customer can demand his funds without notice to the financial institution.

Savings bank accounts in Kenya

These accounts are used by banks to collect money from customers, which the banks then lend to those who need loans. The customers earn interest on their savings accounts. The banks usually restrict the amount and number of times a savings account customer can withdraw. Few banks give cheque books for savings accounts, though majority of the banks give ATM cards to their customers

Money market bank accounts in kenya

A minimum amount is required to open this account. The minimum amount is the amount that must be in the account at any one time. Charges are levied on accounts that are below minimum, and these accounts are eventually closed if they are not funded. These types of accounts earn interest for the customers. The number and amounts withdrawn per month are restricted depending on the bank or financial institution.

Fixed deposit bank accounts in Kenya

This account has various names, for example time deposit or certificate of deposit. The amounts deposited in the account are fixed for a specified time. Different amounts and with corresponding different time periods earn different interest rates. The longer the amounts are held, and the more the amounts held then the customer earns higher returns or interest. After the customer has fixed a deposit, he can pay a penalty to the bank to have access to his funds.

Banks compete by the products they offer to the public. in kenya the tpyes of bank accounts on offer are many and the customer is spoilt for choice.