Did you know that 17% of adults in Kenya don’t own a bank account? The 2016 FinAccess report by the Central Bank of Kenya shows that a whopping 17% of Kenyan adults have no bank accounts, mobile money, or any other savings collective.
Worse? Not yet!
Kenya’s saving rate is 13%, 4% lower than Africa’s average of 17%. According to the report, the rate was calculated as the difference between income and consumption to the percentage of GDP.
With such worrying trends, most people can only dream of financial freedom. But unlike them, you don’t have to be a dreamer.
You can start your journey to financial freedom today by opening a savings account and compounding your savings. But first, you must choose the best bank in Kenya for savings that align with your goals. And let no one lie to you; all banks’ savings accounts are different.
Join me as I explore the features of the top five best banks to make your selection even more straightforward. I’ll share my recommendation for the best banks in Kenya for savings.
Best Bank in Kenya for Savings
The best banks in Kenya for savings, from my experience as a customer, is:
- Stanbic Bank
- Co-operative Bank
- Family Bank
- Equity Bank
- KCB Bank
Here’s an overview of why we featured these banks, including what their saving account offers.
#No. 1: Stanbic Bank – PureSave Account
Stanbic Bank, established in 1958, is one of the best banks in Kenya for savings. The bank’s head offices in Kenya are at Chiromo Road, Westlands. Its Kenyan branches are over 25.
The bank offers savings options via its PureSave account. Your savings earn an annual interest of up to 7% on all savings above Ksh. 5,000. What’s better, you can borrow against your savings of up to 80%.
One of the biggest challenges that financial freedom dreamers have to fight is a change of heart and withdrawing savings. With the PureSave account, you can only withdraw once, over the counter.
Other benefits of Stanbic’s PureSave account include the following:
- Free funds transfer from M-Pesa to your savings account
- No monthly fees charged
- Interest is calculated daily and paid monthly
- Access to a current account with free access to the Internet and mobile banking
You can open a PureSave account by visiting the nearest Stanbic bank close to you with your ID card. If you’d love to learn more about the PureSave account before opening, you can request a call back from the bank by filling out the form on their website.
#No. 2: Co-operative Bank – Hekima Savings Account
The Co-operative Bank was established first as a society and later as a bank. With over 200 branches, the bank has created and maintained its reputation by focusing on small business owners.
Cooperative Bank offers the Hekima account category as a suitable solution for its users who’d love to save without fixing their money. The account lets you use premium interest rates and grow your savings.
But why does the Hekima saving account make Co-Operative Bank one of the best banks in Kenya for savings?
The account charges no maintenance fee, operating, or opening balance. That means you won’t be charged anything when depositing or withdrawing from the account. The savings interest rates are calculated daily but are paid quarterly.
You can only withdraw once per calendar quarter from the Hekima saving account. This makes it an easy solution for you, especially if you have a money management problem. You don’t want a saving account where you can withdraw when you feel like it.
However, unlike regular accounts, these account has no debit or credit card. In addition, you only receive the accounts statement once every six months.
One hitch with Co-oP’s Hekima Saving account is the one withdrawal every six months. It could be inconvenient if you’d love to save for a shorter time than stipulated.
Other benefits of the Hekima Saving account include:
- Easy to open (with national ID and KRA pin)
- Interest rate charge of 3% per annum
You can inquire how to open a Hekima Saving account by filling out the form on the Co-Operative Bank website. You can also visit the Co-Operative bank branch closest to you for more guidance.
#No. 3: Family Bank – Tujenge Account
Family Bank is one of the most preferred banks by most Kenyan families. Its operation began in 1984 as a Family Finance Building Society Limited. The bank has survived several transitions and is revered for its affordable loans and comprehensive services.
Family Bank is reputable and one of the best banks in Kenya for savings, courtesy of the Tujenge Account. Opening the account is free, but the least interest-earning balance is Ksh. 20000. The banks’ interest is calculated annually on monthly balances.
The bank advises opening the account for emergencies and future projects. Therefore, they offer only 4 free withdrawals per year.
The downside of the Tujenge Account is that you must have a minimum of Ksh. 20,000 for your savings to start accumulating some interest. Therefore, you may take longer to start accumulating some interest on your savings, especially if your daily savings are less.
More benefits of having a Tujenge Account include:
- Low-interest rates on deposit-secured loans.
- Available loans of 90% of your deposit
- A free statement upon request
- One free withdrawal per quarter
Additionally, you can facilitate your saving either by standing orders, an agreed contract from the bank, or depositing money any time of the day.
Armed with your National ID, a copy of the KRA Pin, and your preferred amount to be deposited, you can open the Tujenge account at any branch. Take your first step towards financial freedom and open a savings account today.
#No. 4: Equity Bank – EazzySave Account
The Equity Bank opened its doors in October 1984 and is the second largest bank after Kenya Commercial Bank (KCB) as of 2022. The founding idea was to offer mortgage financing and target low-income earners.
Equity Bank has the largest customer base in Africa, which is evidence enough of its growing efficiency in service providence. Equity Bank’s savings account is the EazzySave. The EazzySave account serves the best individuals or groups saving towards a predetermined goal.
The account doesn’t require operating or monthly fees, and just like Family Bank, savings over Ksh.20,000 attract annual interest. You can deposit to your savings account via cash and cheque deposits.
The bank offers a mobile banking option to ensure full access to your savings. However, you can only use mobile banking to view your savings balance and only withdraw from the account once.
Other benefits of the EazzySave Account include:
- Easy access to the account via Equitel or EazzyApp.
- 24hr support from customer support.
- Free internal standing orders
- Real-time transaction on the account.
- An existing complaint resolution process.
You can create an EazzySave account by visiting an Equity bank branch. Remember to bring your national ID and KRA Pin when opening the account.
#No 5: KCB Bank – Goal Saving Account
KCB Bank Kenya Limited was founded in 2015, but it has a rich history that dates back to 1896. Today, KCB Bank is the largest bank in Kenya (as of 2022) and has over 300 branches. Its customer acquisition rate and market share are rapidly growing.
KCB offer several savings account depending on the account’s owner and the aim. The bank classified the options into Simba, Club, and Goal accounts.
The Simba savings account offers 5% p.a and one monthly free withdrawal. The account has a minimum balance of Ksh. 1000. The target customer for this account are people saving for the short term and hence need regular access to their savings.
On the other hand, a Club account is a Simba-like saving account for individuals under 18yrs. The account attracts similar benefits to the Simba account, and the target customers are young parents who’d love to save for their children.
Goal Saving account is the epitome of what KCB offers on saving accounts. This account suits goal-oriented savings and has timelines ranging from 6 months to 5 years. The account offers more advanced benefits, such as access to loans and matching up to 100% of your savings.
I’ve used the Goal Saving Account from KCB Bank in the past, and I found it perfect, especially if you’d love to develop money discipline. It’s perfect for you, especially when planning to save up capital for future investments.
Other benefits of having either of the three KCB Savings options:
- Can open multiple saving accounts for desired goals
- Zero monthly or transfer fee
- The opening balance minimum is Ksh.1000
- Competitive 5% p.a interest rate.
Irrespective of the account you open an account, you will need a copy of your KRA Pin and original national ID. However, you may need the child’s birth certificate to open a Club account.
Teach your kids the importance of saving by creating a Club account or saving alongside them using either the Goal Saving or Simba account. Visit the closest branch to you and be a step away from financial freedom.
Which Is the Best Bank in Kenya for Savings?
The best bank in Kenya for savings is Stanbic Bank – PureSave account. The account offers increasing interest rates depending on your deposit. What’s more, savings start accumulating on savings from Ksh.5000, an easily achievable deposit.
But depending on your preferences, the best bank for savings in Kenya may vary. More goal-oriented people prefer locking their money for a predetermined time for long-term goals, whereas others love more control over their savings.
Let us know in the comments which is your best bank in Kenya for savings! Happy saving!
