The KCB Group has increased the interest rates on its savings accounts to encourage consumers to hold long-term deposits.
According to the bank, it has increased the annual yield on its KCB Goal Lock Savings Account from 6% to 7.5%.
Between 5% and 7% in annualized interest will be offered on KCB Simba, Goal, and Cub Savings Accounts in the meantime.
“We have listened to our customers’ feedback and now we are out to give them value for their hard-earned money,” said KCB Bank Director of Retail Banking Anastacia Kimutai.
The bank claims that the adjustment will provide comfort to customers who have recently struggled with lesser returns due to an increase in commodity costs.
According to KCB, its new interest rates on fixed deposit accounts, which are 6.61 percent, continue to be higher than the industry average.
The average commercial bank savings rate was 2.52% in May, down from a higher 2.56 percent in April, according to data from the Central Bank of Kenya (CBK).
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Despite expectations of higher lending interest rates, which in an ideal world would support a high savings rate, the annualized return on savings has decreased.
Commercial banks have been focused on lowering the savings rate, though, as they look to cut funding costs to rein in costs.
