Govt compels banks to pay interest on savings accounts and fixed deposits

By ZBC Reporter
ZIMBABWE’S depositors have been granted a relief following the enactment of a statuary instrument 65 of 2020 directing banks to pay interest on savings accounts and fixed deposits.
The past few years have seen Zimbabweans facing the challenge of having no interest from banks on their savings and deposits.
A treasury report indicates that depressed savings have put pressure on the exchange rate stability and continued to hinder positive economic growth rates.
However, in order to promote financial intermediation and stimulate production, the government has with immediate effect, gazetted a statutory instrument 65 A of 2020 directing banks to start paying interest on deposits and savings.
A commercial law expert, James Makiya said the move by the government was long overdue.
“We just hope the banks will comply and see what such a move will have in terms of its impact on the economy,” said Makiya.
Banks are now supposed to pay an interest rate of not less than 90 percent on treasury bills and at least 75 percent for individual and corporates savings for a period of 30 days.
The Reserve Bank of Zimbabwe has also been granted powers to determine the yields of treasury bills and interest on individuals as well as corporate balances.