"No the minister did not fail to address inflation," I replied adding, "In fact the government is committed to price stability."
I further told my friend that it is rare to find a bank that offers interest rates above the inflation rate given the normal operations of banks.
I pointed out that some like Post Bank offer impressively competitive rates given their track records. This perhaps explains why the Finance Minister announced that money to help landless people own land it disbursed money through Post Bank.
"An additional Shs. 3 billion has been allocated in this Financial Year 2008/09 bringing the total to Shs. 6 billion.
"An agreement has been signed with Post Bank to ensure timely and efficient disbursement of this facility," Dr. Ezra Suruma, said.
If you are interested in holding a saving account with good interest rates, then Post Bank might be the best commercial bank for you. One of them is the Save- As-You-Earn account, with an opening amount of sh.10, 000 and you are not supposed to withdraw more than twice a year.
But when the amount on your account is at least sh.100, 000 the interest you will earn will be 8% per annum. This is a very competitive compared to what other commercial banks offer for savings accounts. Interest is paid twice per year (June and December).
Post Bank also offers the Early-start account this is for children and students. With the early-start account withdraws are limited to three times a year; and, when the amount on your account notches at least Sh.50, 000 the interest you will earn will be 6% per annum. Again, this very competitive compared to what other banks offer.
Withdrawals on both types of saving accounts are free.
What makes their interest rates competitive?"The interest we offer on savings is well above the inflation rate and therefore the people's savings do not lose value," Mr. Stephen Mukweli, Managing Director, Post Bank told me.
As for a loan, which is a service all commercial banks offer these days, Post Bank offers a variety including salary, pension, Boda Boda, and business loans. Again I was impressed by the interest rates.
Although I am usually reluctant to recommend loans, the fact that Post Bank loans range from 15% to 26% might influence my opinion. This is because the lowest interest rate on loans for most banks is 22%.
But perhaps Post Bank's leverage; and one that will bring a smile to rural people, is its good relationship with Savings and Credit Cooperatives (SACCOs).
The bank has an extensive network with mobile banking points in 13 districts located at: Kapchorwa, Bukedea, Sironko, Pallisa, Budaka, Butaleja, Bududa, Manafwa, Tororo, Kibale, Kaborole, Kamwenge; and, Kyenjojo. These banking points are located in rural areas without banking services dampening the feeling that banks are averse to rural areas.
"We are a bank that is socially oriented and we are fighting financial exclusion," Mukweli said adding, "By offering financial services to people who would otherwise have no access to them or are not in position to afford them."
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