KCB raises interest rates on savings

KCB Group has raised interest rates for its savings accounts as it seeks to strengthen long-term deposit keeping by customers.

The bank says it has raised the annual return on its KCB Goal Lock Savings Account to 7.5 from six per cent.

KCB Simba, Goal and Cub Savings Accounts with meanwhile attract an annualized return of between five and seven per cent.

The bank says the revision will serve to cushion customers who have in recent months contended with lower returns against a surge in commodity prices.

“We have listened to our customers’ feedback and now we are out to give them value for their hard-earned money,” noted KCB Bank Director of Retail Banking Anastacia Kimtai.

KCB says its new interest rates continue to beat average industry interest rates on fixed deposit accounts at 6.61 per cent.

Data from the Central Bank of Kenya (CBK) the average commercial bank savings rate stood at 2.52 per cent in May falling from a higher 2.56 per cent in April.

The fall in the annualized return from savings is despite the expectation of rising interest rates on lending which would ideally inform high savings rate.

Nevertheless, commercial banks have been keen to hold down savings rate as they pursue a lower cost of funds to anchor down expenses.