LATEST: Banks to start paying deposit interest next month – RBZ

Oliver Kazunga, Senior Business Reporter

THE banking sector will start paying interest on savings and fixed deposit accounts starting next month in compliance with Statutory Instrument 65A of 2020, the Reserve Bank of Zimbabwe (RBZ) has said.

Last year, Finance and Economic Development Minister Professor Mthuli Ncube pronounced Statutory Instrument 65 of 2020 directing banks to pay interest on savings accounts and fixed deposits.

The directive was issued to promote financial intermediation and to stimulate production. However, banks were yet to observe the directive.

In a statement, RBZ Governor Dr John Mangudya said through their successful engagement with the Bankers Association of Zimbabwe (BAZ), banks have agreed to comply with the directive.

“The Bank wishes to advise the banking public that it has engaged the Bankers Association of Zimbabwe on the need to comply with Statutory Instrument 65A of 2020 on the payment of interest on savings accounts.

“To this end, interest rates on deposits that shall be offered by banking institutions, effective 1 July 2021 are as follows: savings accounts minimum of five percent per annum on ZWL$, a minimum of 1 percent per annum on US$,” he said.

Fixed term deposits for ZWL$ shall be paid at a minimum of 10 percent per annum and a minimum of 2,5 percent per annum for US$.

-@okazunga