JUST IN: Banks to pay interests on deposits

According to the RBZ, there has been a notable improvement in access to and the usage of financial services among marginalised segments of the population as reflected by the total collateral pledged as of February 28, 2025 (File Picture)

Banks will now be compelled to pay minimum interest rates on deposits following the agreement between the Reserve Bank of Zimbabwe and the Bankers Association of Zimbabwe.

With effect from 1 July 2021, interest rates on deposits offered by banking will be as follows:

“$US Savings Accounts Minimum of 5 percent per annum Minimum of 1 percent per annum

Fixed Term Deposits Minimum of 10 percent per annum Minimum of 2.5 percent per annum.

The measure is in line with Statutory Instrument 65A of 2020 on the payment of interest on savings accounts. There will also be no bank charges on savings accounts and fixed term deposits.

The Bank, however, advised the public that demand and call accounts are transactional accounts from which funds deposited can be withdrawn at any time and without advance notice “and hence, in line with global practice, banking institutions will not be able to pay interest on such transitory deposits.”