Savings accounts to earn interest effective next month

By Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has directed banks to charge interest on deposits and to slash transaction charges in a move set to further restore the integrity of the financial sector.
In a move that is expected to enhance financial sector credibility and restore confidence, savings and fixed term deposits will start to earn interest with effect from the first of July.
In a press statement, the Reserve Bank of Zimbabwe noted that it has agreed with the Bankers Association of Zimbabwe to charge interest on savings accounts at a rate of five percent per annum for local currency accounts and one percent on FCA accounts.
Local currency Fixed term deposits accounts will earn a minimum of 10 percent per annum while foreign currency denominated accounts will get 2.5 percent per annum.
Savings and fixed term deposit accounts will not be levied any bank charges.
The move comes at a time when the financial sector which in the past faced difficulties is showing strong signs of growth after the central bank instituted measures to cleanse the sector from toxic bank assets.

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