In this article, I will enlighten you on best-fixed deposit rates in Kenya. A fixed deposit is the most popular way of saving money. It is a sure investment as well as offers good returns.
Schedule of Fixed Term Deposit Interest Rates - effective from 02 November 2020. The Standard Bank app. Bank on the go, in the palm of your hands. You can have more than one fixed deposit if you want to save for different goals. Standard Bank is a licensed banking institution in terms of the Financial.
While opening a fixed deposit account, you will need to put a fixed tenure at an agreed rate of interest. At the end of this tenure, you will receive the amount you have invested plus compound interest.
With a fixed deposit account, you are guaranteed of positive returns. These returns do not fluctuate over time as opposed to market-led investments.
Even though the fixed deposit rate falls, you will continue to receive the interest decided when you opened the account.
The return on investment on fixed deposit accounts depends on the fixed deposit interest rate and the type of deposit you are investing.
You can opt for a monthly or quarterly pay-out of interest or the reinvestment option, which will give you the benefit of compounding.
While fixed deposit accounts are fixed for an agreed tenure/period, you can take out a loan against it in the form of an overdraft.
The benefit of this kind of loan is that your investment continues to earn interest and you do not have to withdraw your money prematurely.
Best Fixed Deposit Rates in Kenya
Here are the best Fixed Deposit Rates in Kenya in 2020
1. KCB Bank
KCB offers a competitive fixed deposit rate for local and foreign currencies.
The bank, however, has a condition, money must remain in the fixed deposit rate account for the agreed period.
They offer an interest rate of up to 6% p.a. on your savings
2. I&M Bank
Fixed deposit accounts in I&M Bank are opened for fixed contracted periods, which range from one month to one year.
The bank boasts of having attractive rates, thus providing customers with long term savings growth opportunities.
Fixed deposit accounts can be opened in the following currencies,
- Kenya Shillings
- US Dollars
- Euro
- GB Pounds
- South African Rand
In I&M Bank, the minimum you are allowed to deposit for your fixed deposit account is Ksh. 50,000
3. CBA Bank
CBA bank fixed deposit account offers flexible investment periods with interest that is paid upon maturity or at predetermined times of the year.
In CBA, you have the luxury of investing in both local or foreign currency.
You require the minimum of Ksh 100,000 / USD 10,000 as the deposit amount in CBA.
4. Stanbic Bank
Interest rates at Stanbic bank are fixed during the investment period and funds available on maturity.
There is no monthly fee charged to this account, and interest is also calculated upon maturity.
5. Standard Chartered Bank
The fixed deposit account is available to clients of this bank in Kenya Shillings, US Dollar, Pound Sterling, Euro, Japanese Yen, Australian Dollar and South Africa Rand.
What is attractive about this bank is that you can negotiate for a fixed deposit rate that suits you.
You can access personal loans and overdrafts equivalent to 80% of the balance in the Fixed Deposit Account.
You require a minimum of deposit of Ksh 100,000
5. Equity Bank
Equity Bank fixed deposit account provides you with a medium for investment opportunities for individual savers, businesses and organisations.
The minimum amount you can invest in this bank is Ksh 20,000 with a minimum investment period of one month.
The bank allows you to negotiate the fixed deposit interest rate that best suits you.
One of the benefits of the fixed deposit rate accounts in this bank is that you can withdraw prematurely.
It also allows direct borrowing of up to 80%.
6. Cooperative Bank
The investment period offered by Coop Bank is one to twelve months.
The clients are then paid a competitive rate for the period the money is held in the account.
7. DTB Bank
The minimum deposit allowed at this bank is Ksh 100,000, and it offers a competitive fixed deposit rate.
You can also deposit using foreign currency–> USD 10,000 or GBP 10,000
8. Consolidated Bank
This facility is available to both individuals and business clients.
You require a minimum account opening balance of Ksh 50,000.
You can invest at this bank for a period one month, 2, 3, 6, 9 or 12 months or on call.
The account holder can get a loan and overdraft using the deposit account.
More about the fixed deposit rates in Kenya
- The interest rate is fixed and guaranteed for the term of the investment, so you don`t have to worry about declining interest rates.
- Depending on what bank you settle on, interest payment options are flexible, allowing interest to be paid monthly, quarterly, half-yearly, annually or upon maturity.
- Some banks will enable you to the fixed deposit accounts as security against a loan or overdraft.
- You have the choice of changing your investment period, inform the bank before the date of maturity.
- Some banks offer a free advice slip in the mail upon maturity or on request, also enquire about this from your respective bank.
For more information on a specific product, look at the list below:
- Investment deposits - a range of short and long-term investment deposits to suit your lifestyle
- Offshore investments- a comprehensive range of stock broking and asset management services available to a worldwide customer base (product currently available for Executive Banking Customers).
Notice deposits
An investment account that earns you interest and your funds are available after you have given us 32 days notice.
A notice deposit is an investment account that earns you interest - but to access your money you must give us 32 days notice. Our notice deposit account offers you these features and benefits:
The higher your balance, the higher your interest rate. Interest rates are variable, and any rate change will be effective immediately. Interest is calculated on your daily balance and paid into another account or re-invested monthly.
Fixed deposits
A fixed deposit is an investment account where money is deposited for a fixed period and the interest does not fluctuate.
A fixed deposit account offers you these features and benefits:
Standard Bank Fixed Deposit Rate
- You choose how long you want to invest - from 33 days to 5 years.
- The pick-a-date feature lets you choose the date on which you would like your investment to mature.
The interest rate is fixed for the full period of your investment. - You can't add to your investment. If you have more money to invest you will need to open another investment deposit account.
- You cannot withdraw funds from your fixed deposit account during the period of the investment.
Interest is paid monthly, quarterly, annually, or on maturity.
- Interest is only paid out monthly or when your investment matures.
- Your investment period options are limited to 3, 6, 12, 18, 24, 36, 48 and 60 months.
Internet banking
State Bank Fixed Deposit Calculator
The following options are available for the various electronic investment accounts through Internet banking:
State Bank Fixed Deposit Rates
| Product | Options |
| MarketLink | Electronic account payments Inter-account transfers Balance enquiries and statements |
| Call deposit and electronic call deposits* | Open an electronic call deposit Inter-account transfers Amend interest disposal instructions Balance enquiries and statements |
| 32-day notice deposit and electronic notice deposits* | Open an electronic notice deposit Inter-account transfers Give and cancel notice Balance enquiries and statements Amend capital and interest disposal instructions |
| Fixed deposit and electronic fixed deposits* | Open an electronic fixed deposit Amend capital and interest disposal instructions Amend the interest payment cycle Balance enquiries and statements |
| BonusPlus | Balance enquiries and statements |
Electronic Call Deposit, Notice Deposit and Fixed Deposits: these are accounts that have been opened at an Auto Plus ATM through Internet banking or our Customer Contact Centre.