Types of Bank Accounts in Kenya
So how do you get the best bank accounts in Kenya?
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
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 The number and amounts withdrawn per month are restricted depending on the bank or financial institution.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.
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Which of these bank accounts would you recommend to earn the highest rate of interest in the long run…say 5 yrs?
With all these other accounts given different names do they still fall on the same types. mostly you are not told what you get yourself in until you are already in it.
It is very important to engage the sales person and ask all the questions before signing up – if the bank agents have the answers.
I think the basic question you need to ask yourself before you apply for any bank account is what you need it for. If savings, you need to look at the interest earned, day to day transactions, the fees you pay for the transactions, Investments, interest you earn. Do a bit of research on the different offerings from different banks before you make a decision. Another important factor is access to the account….is it by going to a branch, card, mobile or Internet.hat is convenient for you?
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I have realized that at times some of these sales agents rarely have enough infor to provide guidance on the account most suitable for a particular client
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This is a wealth of knowledge.I m entering into the banking without any fear of the unknown