5 Best Banks in Kenya for Savings

The Kenyan savings rate has been increasing for the last three years despite the economic shocks brought about by the COVID-19 pandemic. This year alone, experts predict that Kenyans are expected to increase their rate of saving money, why? Some experts like Statista forecast that the average household disposable income will reach $109.40 billion and total consumer spending will hit $88.59 billion.

More disposable income attracts more savings. In addition, if you dream of achieving financial independence, you must start with one simple step; opening a savings account. But this may be a daunting task with many banks available to choose from for your savings account.

You must factor in the interest rates, minimum initial deposits and earning balances, account and transaction fees, withdrawal limits, and security. In addition, you must weigh how convenient the bank is. But you don’t have to go through all this as we have a comprehensive guide on the best banks in Kenya for savings.

Our comprehensive guide provides factors and tips to consider when choosing the best banks in Kenya for your savings account and the top 5 best banks in Kenya for savings. Whether you are opening your first-time savings account or you are a seasoned saver, we have mugshots for everyone.

Take a look!

Factors to Consider Before Opening a Savings Account in Kenya

Choosing the best bank account for savings in Kenya based on your requirements and preferences requires some consideration. Important factors to consider:

1. Interest Rates: Prioritize interest rates while choosing a savings account. Higher interest rates will benefit your money in the long term. Compare interest rates using each bank’s base rate and promotional rates. Though higher rates may include additional restrictions or conditions.
2. Minimum Balance Requirements:To keep your savings account open, you must meet an opening balance criteria at most Kenyan banks. Failure to meet this condition may result in account fees. Choose a bank with a minimal amount you can readily afford given your financial situation.
3. Account Fees & Charges: Banks charge consumers monthly maintenance, withdrawal, transaction, and account opening fees. Compare prices to choose a bank with fees that fit your budget.
4. Access and Convenience: Consider how accessible the bank’s branches are. Find a bank near your home or job if you prefer in-person banking. If you prefer digital banking, test the bank’s mobile and internet services for functionality and usability.
5. Security and Reputation: Trusting a bank with your savings is important, so be sure they’re safe and reputable. Read client reviews, check the bank’s finances, and evaluate its industry reputation. Choose a bank with fraud protection and secure Internet banking.
6. Customer Service: Excellent service can enhance your banking experience. Look at their response time, competence, and client satisfaction with the bank. Choose a bank that communicates with consumers and resolves issues quickly.
7. Additional Features and Benefits: Some banks offer savings accounts with rewards programs, overdraft protection, and other banking products. Consider these benefits and how they will affect your money before choosing a bank.
8. Account Types and Flexibility: Examine the bank’s savings account options. Various income levels, children’s savings accounts, and fixed deposit accounts may be available. Choose a bank that can change to fit your needs.
9. Digital Banking Capabilities: Today, banks must offer online and mobile banking to be competitive. Check their mobile apps, online account management, and digital transaction capabilities for functionality.
10. Regulatory Compliance and Debit Protection: Make sure the bank you choose has debit protection and follows all requirements. This extra precaution will protect your money in an emergency.

Consider all of the factors above while choosing a savings account for your requirements, tastes, and future. Do your research since the bank you open your savings account with will affect your financial security.

Best Banks in Kenya for Savings Account

Most Kenyan banks have greatly enabled a saving culture in the country by introducing custom features that favor everyone; businesses and individuals alike. They have improvised mobile banking, M-Pesa-bank integration, and increased trust from the population. Here are the 5 best banks in Kenya for savings after thorough research:

1. Stanbic Bank: Best for High-Interest Rates

If you are interested in having your money to work harder for you, Stanbic Bank will give you premium interest rates on savings accounts in Kenya. Their PureSave Account is amazing as it allows you to accrue up to a whopping 14% p.a. interest on your savings!

A PureSave account enables you to accumulate cash balances while your funds appreciate. In other words, the more you save, the more interest you will be able to earn. The interest is calculated daily and paid to your account monthly; hence, your earnings are compounded. Moreover, if you don’t withdraw for 12 consecutive months, you’ll get an extra 1% interest rate on your current account!

Stanbic has even gone further to provide more benefits like the free withdrawals option every month, free internet and mobile banking access, and the facility to transfer funds from M-Pesa. Going further, you can have your loan pre-approved by up to 80% of the amount saved.

Opening your PureSave account is free – all you need is a copy of your Kenyan ID Card, proof of residence, and 3 bank statements of the last 3 months or a payslip. The absence of a monthly maintenance fee indeed implies that every penny you save goes to expand your nest.

Besides PureSave, Stanbic also provides very competitive Fixed Deposit accounts with a guaranteed interest rate for investment periods ranging from 1 month to 1 year. Additionally, the call deposit account is a perfect way of putting surplus cash and earning interest while still having access to your funds at any time.

2. Equity Bank Kenya: Best for Offering a Variety of Savings Options

Equity Bank of Kenya tops the chart for banks offering saving accounts with superb variety to suit the saving needs of all customers. As the largest bank in Africaregarding the number of its account holders – 16.9 million, Equity has demonstrated clear leadership in financial inclusion and innovation.

EazzySave account is ideal for individual savers because they enjoy competitive interest rates on KSh 20,000 and above balances with no minimum operating balance, no monthly fees, and no account maintenance fees. It offers facilities for mobile banking, cash, and cheque deposits with one free withdrawal per month. The Jijenge Account assists customers in building their dreams by creating a direct avenue to save towards a specific target. In addition, the Junior Member Account is opened by the parents for their children who are below 18 years old and inculcate a saving culture at a tender age.

The Achievers Student account ensures students have no ledger fees, free internal funds transfers, and financial literacy materials. In addition, the Teen Member account serves teenagers and gives them their own savings account. The School Fees account aims to facilitate saving for future education costs, giving four free withdrawals every year and three free bankers’ cheques for fee payments.

Equity Bank Kenya offers savings and investment products tailored to individuals and the EazzyChama platform, for small businesses, investment groups, and the diaspora community which aids effortlessly in managing their operations online. Additionally, the Call/Fixed Deposit Account lets customers, entrepreneurs, and organizations accumulate funds for investment opportunities, among other things, with a minimum fixing amount of Kshs. 20,000, flexible interest rates, and the possibility of lending them collateral using the deposit.

Setting up an Equity savings account is no hassle, you only need the Kenyan original ID card, and KRA pin and fill up an application form at any branch. Additionally, with a vast branch network, agents, and mobile banking channels, the bank can fulfill the accessibility requirement for any customer.

Being the Best Overall Bank winner of the Think Business Banking Awards in 2023 plus being ranked as the second strongest banking brand by Brand Finance, is clear evidence of the strong banking with the brand. Furthermore, Equity Bank’s investments in financial inclusion, health, energy, environment, climate change, food, agriculture, and education have helped to extend the range of services offered to the public. Having a big ambition of gaining 5 million more customers by 2025, Equity Bank is committed to customer needs through constant investment in sustainable practices.

3. Co-op Bank Kenya: Best for Customer Service Excellence

The Co-operative Bank of Kenya has again won the Overall Winner of the Customer Satisfaction Survey award as an outcome of research commissioned by the Kenya Bankers Association covering both 2022 and 2023. The bank was also a top player in the Tier 1 Bank Tie. Such awards demonstrate the Co-op Bank’s dedication to the highest standard of customer service. It chooses to prioritize the investment in creating high-skilled teams, great tools, and technologies to ensure that customers enjoy excellent service beyond the online and offline channels.

Co-operative Bank of Kenya has a variety of savings accounts to cater to the needs of a broad base of customers. One example is the Hekima savings account which offers the best quests to clients with no royalties charged when opening an account and also when it comes to operating no minimum operating balance is required either when opening an account. Besides, this account gives you one time of withdrawal over a year, and you receive a statement twice a year. The Hekima Savings Account also has other benefits such as deposit insurance through Kenya Deposit Insurance Corporation, safety, and security, and hassle-free, online and mobile banking.

To open a Hekima Savings Account, you only have to walk into any nearest Co-op Bank branch -for free- with your national ID and any Co-op Bank ATM card. However, you will need to use your usernames while passwords can be reset anytime from its profile page, in case the account holder forgets or needs to change their passwords. The best way to maintain sound security is by necessitating the use of a single-use password (OTP) every time you log in or make a transaction.

The bank’s Hekima Savings Account has no minimum balance, monthly maintenance fee, or ATM card, and withdrawals are limited to one calendar quarter per year. The account similarly multiplies interest daily and is then paid every quarter. The bank proves its name with numbers where the Co-operative Bank of Kenya reported net earnings of Kshs 23.2 billion against an increase of Kshs 1.2 billion in 2022 due to decreased operating expenses. This also demonstrates Co-op Bank’s financial strength and stability, and it meets all the regulatory requirements that come with the Kenya Deposit Insurance Corporation.

4. Family Bank: Best for Personalized Savings Solutions

Family Bank Kenya is another leading commercial bank that offers savings accounts such as Tujenge, Chama, Extra Cool Visionary, Mkenya Daima Diaspora, and Mdosi Junior. These accounts target specific demographics with attractive interest rates, flexible durations, and other benefits.

You can save for unforeseen needs with the interest-bearing Tujenge Account. Plus, there’s no minimum operating amount required, but KES 200 to open the account. You can split your direct deposit, use standing orders, and set up contractual agreements to save money. This account offers interest on average monthly balances of KES 20,000 and four free withdrawals per year.

Investment groups of 5–35 can open the wealth-creating Chama Account. The Consumer Chama allows account holders to receive loans that are three times the average Chama Account savings with attractive interest rates. Plus, the Chama Account comes with other benefits like free internal standing orders, quarterly Chama workshops, and bancassurance.

The Extra Cool Visionary Account lets teens save now. This includes a free banker’s check for tuition, standing orders, and financial literacy workshops. You can earn interest without maintenance or ledger fees with a KES5,000 balance.

Family Bank’s Mkenya Daima Diaspora Savings Account is for Kenyans living abroad. The minimum account balance required to open the account is KES 10,000 (or equivalent in other currencies) or USD, GBP, or EUR. What’s even better about this savings account is that it has no ledger fees.

Family Bank offers digital banking solutions like mobile banking, and PesaPap for account balances, statements, bill payments, and more. In other words, secure transactions and bulk payments are possible with online banking. Additionally, Family Bank offers smart card-based paperless banking for deposits and withdrawals.

You can open accounts at Family Bank branches or online. However, you must provide account opening paperwork, one passport-sized photo of each application, a copy of a valid passport or Kenyan national identity card, a utility bill or bank statement, and a KRA PIN certificate. Whether registered or not, chamas or investment groups can get a Chama Loan from Family Bank after saving for six months.

Family Bank Group reported KES 3.02 billion in PBT for theSeptember 30, 2023 fiscal year. Assets rose 9.6% to KES 140.97 billion from September 2022’s KES 128.5 billion. This indicates that Family Bank is a reliable and secure financial institution that fulfills all regulations set out by the Kenya Deposit Insurance Corporation. The bank’s revenue has doubled due to consumer loans, revenues, and investment decisions.

Nonetheless, Family Bank is still one of the top places to put your money in Kenya because of all the amazing things about it: the variety of accounts it offers, the low or nonexistent fees, the flexible terms, the competitive interest rates, the accessibility and digital banking services, and the stellar reputation it has in the banking sector.

5. KCB Bank: Best for Security and Stability

KCB Bank Kenya is highly reputed to be among the most secure and stable banks in Kenya, managing billions of customer deposits and investments. This factor makes it one of the biggest banks in the country, where individuals are assured of security and stability in their savings. The bank is under the governance of the Central Bank of Kenya (CBK) and is one of the depository members of Kenya Deposit Insurance Corporation.

KCB Bank Kenya provides several banking options that are made to fit the distinct customer communities and fulfill the many requirements of each group. One of its most well-liked accounts is the Simba Savings Account, offering customers a lucrative interest rate of up to 8.5% per year, with free deposits, one withdrawal per month, and zero monthly fees. In addition, KCB Kenya also offers other savings options like the Goal Savings Account and the Cub Account.

The Goal Saving Account intends to deliver the desired result to guide customers looking to attain their financial goals. It has a minimum opening balance of KES 1,000 or foreign monetary equivalent that is also without any register or maintenance fees. Customers can put their money into a savings account with a fixed period ranging from 6 months up to 5 years and they will receive money orders without paying for the service and they can have their interest rates based on the offers available in the market. Also, they can avail up to 100% of their savings with single-digit rates once they have rolled over time for their initial saving period.

The Cub Account enables parents and guardians to safeguard their children’s future. It is an attractive choice with an education policy and a requirement of a child’s Kenyan birth certificate, a parent or guardian’s national identity card or international passport, and a valid parent or guardian PIN certificate to open an account.

You can open an account at KCB Bank by walking into a branch in any part of Kenya and/or preparing your bank account online through the bank’s website. Prospective customers will need a valid Kenyan ID or passport, KRA PIN certificate, and other documents such as proof of address for registration. A bank account holder’s credit depends on the account type chosen, and any holder must get at least KES 1000.00 or a foreign currency equivalent. Digital banking services are yet another key offering that makes KCB one of the best banks in Kenya. Mobile banking, nice banking, and a fixed deposit calculator provide convenience and accessibility.

Nonetheless, KCB Bank’s impressive savings accounts portfolio, rewarding interest rates, and the availability of digitization of its banking services put it in a unique placement among the best banks in Kenya, particularly for security and safety-conscious savers.

Final Word

Save more and feel comfortable by opening an account with the right bank. When comparing Kenyan banks, consider interest rates, minimum balances, account fees, accessibility, security, customer service, and extra services.

With up to 14% annual return, Stanbic Bank’s PureSave Account is one of this article’s best savings options. Equity Bank has a variety of savings options for flexible consumers. A strong competitor is the Co-operative Bank of Kenya, which offers the Hekima Savings Account and provides excellent customer service. Although KCB Bank is known for its stability and security, Family Bank offers customized savings solutions.

Personal preferences determine the best savings account bank. Research and compare pricing and benefits to find a bank that meets your budget and needs.

Read also:

6 Best Banks in Kenya for Investments

14 Best SACCOs in Kenya for Savings Today

FAQs-Best Banks in Kenya for savings