Opening A Savings Account in Nairobi

opening a savings account in Nairobi

Before opening a saving account in Nairobi, you should learn some more about what a saving account is.

A savings account is a place to store your money. These days, it is all electronic, so you can set up a savings account with any bank and they/you can track how much money is in it. You “deposit” money to put money in it, and “withdraw” money to take money out.

Most savings account add interest over time. This means you get money based on a percentage rate set by the bank and the amount of money in your savings accounts. You gain interest because the bank uses the money you store in the savings account to make money, such as providing loans to others. Savings accounts gain the lowest amount of interest compared to other interest accruing financial accounts.

 

Advantages of Opening A Saving Account In Nairobi

 

  1. Savings accounts gain interest over time.


    Although interest rates have been low, with many savings accounts having an interest rate below 1%, you will still gain interest over time with an account. That means you have more earning potential with your money compared to keeping it in a safe at home.

  2. Savings accounts  are insured

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    When you open a savings account at a financial institution , look for it to say that it is insured. This will protect your savings to the maximum amount that is allowed by law.

  3. Your funds are still available.
    With most banks and credit unions, you have online access to your funds 24 hours per day. All you need to have is a data connection or access to the internet. Many institutions will allow you to link your savings account to other accounts you may have, like a checking account, which can help you to avoid costly overdraw fees. This also allows you to transfer funds from one account to another, even outside of regular banking hours.

  4. Your money is  safe.
    Because your money is being held by a third-party, it increases your personal safety. Not only does storing cash on your property make you a target for a potential robbery, but losses like that are not always covered by a homeowner’s or renter’s insurance policy. If there was a fire in your home or some other natural disaster, you could lose your cash as well. Keeping your cash in a savings account keeps you and your money safer.

  5. You can open an account with very little money.
    Many savings accounts can be started for a low amount. Some institutions may have an even lower limit. This gives you an opportunity to begin saving your money, even if you don’t have much to save at the start.

  6. Savings accounts can provide automated bill payments.
    Many financial institutions allow bills to be paid out of a savings accounts. This allows you to save time because you don’t need to manually pay every bill each month . Of course, you’ll need to have money in the account to pay the bill.

  7. You receive security.
    A savings account gives you the opportunity to put away cash in case you have an emergency situation. If you lose your job, for example, you’d be able to draw upon your savings account for your monthly expenses. Think of a savings account as a small insurance policy that can help you maintain your current standard of living.

How to Open A Savings Account in Nairobi

1) Enroll on the Mombi App

2) Fill out your details

3) BEgin in your documents

4) You are good to go.

 

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