Zimbabwe eyes revival of savings accounts

By Business Editor
LOCAL banks are expecting a boom in deposits after resolving to pay interest and remove charges on savings accounts and fixed term deposits.
Concern had been raised over high transacting fees and lack of interests on savings. The transacting public revealed the trend led to most people holding on to their funds at home instead of depositing with banks.
Central bank authorities then intervened by directing financial institutions to slash charges and offer interest with effect from the first of July.
Bankers Association of Zimbabwe president Mr Ralph Watungwa speaks on the latest developments.
“Indeed we are now complying with the set structures as we are hopeful it will also re-ignite market confidence and enable the sector to get more depositors on board thereby stimulating general savings in the entire economy,” he said.
Official data reveals banks posted over 15 billion dollars in net profits during the first half of this year, with transactional fees and charges contributing more to the earnings.