Lender offers upfront fixed deposit interest

Tuesday October 18 2016

The head of products at Barclays Bank Tanzania,

The head of products at Barclays Bank Tanzania, Mr Oscar Mwamfwagasi (right), speaks in Dar es Salaam yesterday during the official launch of the bank’s new product which allows clients to receive upfront interest on their fixed deposits. Others from left are marketing manager Joe Bendera and liability product manager Innocent Chonya. PHOTO | COURTESY 

By Alfred Zacharia @TheCitizenTz news@tz.nationmedia.com

Dar es Salaam. Barclays Bank Tanzania yesterday unveiled a new product that allows its clients to receive upfront interest on their fixed deposits.

This means that the savers – on fixed arrangements - will now be able to take their interest at the beginning of the agreement and spend the money on their other necessities while waiting for maturity period of the deposited amount.

Speaking in Dar es Salaam yesterday, the bank’s liability product manager, Mr Innocent Chonya said one requires to inject a minimum of Sh10 million as deposit and earn a compound interest rate of 15 per cent.

The product, he said, is open to individuals, business partnership projects and institutional clients so long as they hold accounts with the bank. “The aim is to provide our clients with the flexible options so that they decide on whether to get their interest at the beginning, on monthly basis or annually or even at the end of the investment period,” said Mr Chonya.

Currently, the tradition is that clients get their interest as soon as their deposits mature.