Notionet

Have you ever heard or read this statement, ” banks are for rich people” sounds negative, right?  But whoever said it might be right.

If we were to pick Family bank among other banks like Standard chartered, KCB, NCBA, Equity and ABSA, it  is probably the most affordable banks in Kenya . They have very friendly services. You can save money, earn interest and increase your loan limit all for free but you still need a steady source of income. For someone who is not able to deposit money every month as little as it might be, they have to avoid spending to zero else their account will be  deactivated in a few months.

Is it that hard to keep a bank account? No it is not. Its just not good for low income earners. The withdrawal and transactional fees can be overwhelming, for example a single transfer of cash as little as ksh1000 can cost up to Ksh80. To some, this is the amount they need for lunch or bus fare.

What to do?

a) Use mobile banking

Mobile banking uses mobile banking service providers like KCB Mpesa and Mshwari to provide banking to mobile phone users. That includes those who don’t have a bank account.

The service can be accessed through the sim tool kit of the line one is using or through USSD  like *334# for safaricom users.

Mobile banking is easy, affordable and very convenient as one can access it anywhere. It is also one of the best providers of unsecured loans.

With mobile banking services like mshwari and KCB Mpesa one can save money for free or even open a fixed account where the money you save will gain interest.

Most mobile banking providers  give you the ability to save, withdraw or send up to Ksh 150,000 per time.

b) Use prepaid card

A prepaid card, almost similar to a credit card is a modern wallet where one can load cash using a paybill number or via the bank’s counter.

Unlike debit and credit cards, prepaid cards don’t incur any cost. They are also not connected to ones bank account. That is to say one can spend the money in the card to zero or the total amount saved will remain the same until withdrawn or spent.

Money saved in a prepaid card can be withdrawn via an ATM, used to pay for fuel, shopping, make online payments, buy tickets or make bookings. Cards can also be used in other outlets operated by agents in shopping centres near residential areas. Some examples are the popular Family bank’s Pesapap, KCB Mtaani, Co-op Jirani and Equity Agents

Prepaid cards are given for free by banks and other financial institutions at an activation fee of between ksh100 to ksh500. Some of the cards one can get is the

• Family bank prepaid visa card
• KCB  me master card

c) Use a saving can

Also known as a piggy bank or jumbo account, a money can is mostly used by kids but can also be used by adults to make small savings. Money cans come in different shapes and designs. Some are simple metallic cans while others are modern and might require a key or password to open.

Piggy banks and saving cans can be bought from popular online stores like Jumia or AliExpress. Most cost around ksh 600 -900.

d) Buy small assets

Just like banks keep money in form of gold, one can also save money as small assets e.g a watch, bike or anything that does not lose value quickly.  The asset can be traded later to recover the money on a rainy day.

These are some of the few ways you can save or bank as a student or as anyone who intends to bank without much cost. Remember there can be other ways too, you can also come up with your own way of saving.

Featured image by Joslyn Pickens pexels.com