Zivanai Dhewa

Minister of Finance and Economic Development, Professor Mthuli Ncube and the Reserve Bank Governor, Dr John Mangudya have instructed that all banking institutions should review their banking instructions to include a policy stipulated by the Statutory Instrument (SI65A) of 2020 to pay interests on savings accounts.

Announcing through a press statement, Reserve Bank Governor said, “The Bank wishes to advise the banking public that it has engaged the Bankers Association of Zimbabwean on the need to comply with Statutory Instrument 65A of year 2020 on the payment of interest on saving accounts.”

Giving a guideline on how the interest rates should be administered, the Governor said, “... interest rates on deposits that shall be offered by Banking Institutes, effective 1 July 2021, savings accounts shall attract a minimum of 5% interest per annum for ZW$ and  1% per annum on US$ accounts.

“Fixed term accounts shall also under SI 65A of 2020 attract a minimum of 10% per annum on ZW$ and 2.5% per annum on US$ accounts,” read part of the statement.

The Governor further explained on transactional accounts and how they would also operate under SI 65A of 2020.

“The bank also advises the public that call accounts and transational accounts from which funds deposited can be withdrawn at anytime and without advance notice, and hence in line with global practices, banking institutions will not be able to pay interest on such transitory deposits,” Governor Mangudya said.

Meanwhile, people across the political divide have applauded the RBZ for initiating and enforcing SI 65A, as this has increased the public's confidence in the banking sector.  ZIMCODD further urged the Government to strictly monitor the banking activities and ensure that interest is being paid in the depositors’ accounts to avoid people being short-changed.