The minutia interest rate derived from keeping money in a savings account has shifted quite a huge amount of investors interest towards the purchasing of stocks, crypto and other profitable financial assets. On Sunday, September 11, 2016, all mobile money wallet holders on the various telecom networks in Ghana started earning interest on the balance in their wallets from the first half of that year, thus 2016 as a directive from the central Bank of Ghana and the approved interest rate were to be between the ranges of 1.5 percent and 7 per cent.
The decision on the percentage to be paid was to be negotiated with each partner bank of these Telcos and what percentage of interest they’d prefer to give out.
The interest is calculated on your remaining balance and so even if you spend that balance after the interest has been calculated, you still qualify for the interest at the end of the quarter.
On the other hand when you save with a bank like standard chartered and your account is within the frame of Ghs 2000 or below you’re most likely to receive Ghs0.000 as interest on your balance. The tendency to receive a 4%interest rate per annum on your balance when saving with GCB too is probable. Then when it comes to the likes of ABSA and Zenith which are the highest paying interest rate banks on savings accounts, then a client would smile a bit because at least a whooping 9% to 11% interest rate would reflect on your balance.
Not disregarding the brutal transaction fees on these savings accounts which could even eat into quarter of your savings depending on the kind of transactions you tend to make. Contrariwise, The Telco’s are also limiting charges affiliated with transactions, both inter and intra the particular Telcos, For example Vodafone charges absolutely nothing for every transaction you make using Vodafone cash.
These enticing offer gives mobile money wallet an upper hand over these savings accounts.
Esther Ngozi Anosike