Review of M-Shwari lock savings account
Safaricom, being the biggest telecommunication company in East and central Africa has changed the way business is conducted in these economies. The company came up with a revolutionary mobile money transfer system and named it M-PESA. This enabled Safaricom’s customers to send and receive money to any part of the country through the use of mobile phones. All one needed to have is his or her national identification card of an original passport for registration. Other than sending and/or receiving cash, M-PESA allows customers to pay utility bills, buy goods and services and transfer money from your bank account to your mobile phone and vice versa.
With over twenty-four million registered users who find it more convenient to use their mobile phones than going to the banks, M-PESA has now established itself a major player in the banking sector. Banks had to adjust to stay afloat in the market.
As the saying goes: ‘if you can’t beat them, join them’. The Central Bank of Africa (CBA) decided to partner with Safaricom and came up with M-Shwari, a mobile phone service that enables Safaricom M-PESA users to save money and get loans at competitive interest rates.
M-shwari proved to be a big hit among mobile users and consumers preferred the service against the traditional banking methods at MSHWARI is safe, fast and paperless, has no minimum balances and it is completely free to transfer money back and forth from one’s M-PESA account to their MSHWARI account. The amount saved in the M-Shwari account earns interest over a period of time.
As Mshwari grew, so did the need for new innovative ways to retain customers and lure in new ones. So the two partners: Safaricom and the Central Bank of Africa introduced the MSHWARI lock savings account for Mshwari users.
Mshwari lock as a savings account
Basically, this is a savings account for M-Shwari users who want to save for a particular amount of period between one and six months. The savings will earn an interest rate better than most banks in the country. Other advantages that come with saving in this account is that they have a low minimum saving amount which is five hundred shillings, the interest rate is constant throughout the saving period and the account does not charge monthly fees so one can save as little as five hundred and it will not all be taken up by bank charges. M-PESA maximum daily caps also apply to the amount of money one can save but there is no limit to the amount one can save.
Other advantages that come with saving in this account is that they have a low minimum saving amount which is five hundred shillings, the interest rate is constant throughout the saving period and the account does not charge monthly fees so one can save as little as five hundred and it will not all be taken up by bank charges. M-PESA maximum daily caps also apply to the amount of money one can save but there is no limit to the amount one can save.
The interested is earned on a daily basis but paid out on the maturity date that one had selected. It is, however, important to note that one will need a minimum of 1000 shillings for your account to start earning interest.
If for any reason one would wish to withdraw his or her money before the maturity date, this will be done after a processing period of 48 hours but not with the interest rate of the lock savings account but rather the with the interest rate of the M-Shwari savings account which are lower than those of the lock savings account.