Profitable Investment Products From Various Kenyan Banks

Wondering whether you can invest in banks? Here are some profitable investment products various Kenyan banks have to offer.
Wondering whether you can invest in banks? Here are some profitable investment products various Kenyan banks have to offer.

If you are looking for a safe and profitable investment, then investing in Kenyan banks’ products is a good option. With a bit of research, you can find an investment product that best suits your needs and offers a good return on your investment. 

Some investment products offered by Kenyan banks that can be quite profitable include fixed deposit accounts (high-yield savings accounts), bonds, savings accounts, loans, stocks, etc.

Profitable Investment Products From Kenyan Banks

Here are the top commercial banks in Kenya that offer some of these profitable investment products.

Standard Chartered Bank Investment Products

Standard Chartered Bank offers the following investment products;

  • Mutual Funds: You need to have Standard Chartered’s mobile banking app and an Investment Profile to access the SC’s online mutual funds platform. The platform provides users with over 100 international mutual funds to match the users’ financial objectives and risk profiles. Users can transact 24/7 via the mobile app, allowing them to buy/sell, or track their portfolio anywhere. You can invest from as low as $100 with sales and recurring fees charged by the distributor and fund house, respectively.
  • Wealth Lending: When it comes to managing your money, flexibility is essential. The Wealth Lending Service from Standard Chartered enables you to examine new investment possibilities and increase liquidity for your own needs. Wealth Lending allows you to unleash your investment to provide liquidity instead of selling them. In addition, you can borrow in foreign currencies, and enjoy appealing interest rates on utilized funds.
  • SC Shillings Fund: SC Shillings Fund is the ideal investment product for individuals with short- to medium-term objectives. For instance, this product is perfect for you if you intend to save every single day, week, or month. This low-risk investment product promises high returns, low transparent one-off fees, free unlimited withdrawals, and convenience. You can start investing as low as Sh1.
  • Fixed Income Securities: This is a perfect investment product to create, grow, and safeguard your wealth. Standard Chartered’s Fixed Income Securities diversify and minimizes the risk of your portfolio. Thus, it features diversification across various regions and with significant returns, hedges against inflation, and guarantees regular income. In addition, the bank readily repurchases the bonds at the existing market price.
  • Foreign Exchange: Standard Chartered takes advantage of its global footprint to offer one of the most competitive Foreign Exchange rates in Kenya. It provides its customers access to an unrivalled variety of developing markets and G10 currencies. The bank’s online platform allows for telegraphic transfers in 19 different currencies and discounted foreign exchange remittance rates.

Equity Bank Products

Equity Bank is an all-inclusive store for financial and investment products. It offers the following investment products;

  • Investment Accounts: To have an investment account, you are required to have a CDSC account for you to enjoy Equity Bank’s professional expertise. You can also earn dividends, bonuses, and interests on your investments. Plus, you can be sure that your investments are safe. This product does not require users to pay any ledger fees to access it.
  • Shares: This product allows you to trade in NSE-listed shares at zero costs. It guarantees increased security of assets and streamlined trade settlements. You are entitled to every share you buy, which gives you a voting right to that company. Hence, you get dividends from the company as your investment appreciates.
  • Treasury Bills: Equity Bank offers Treasury Bills, issued by the CBK at a discount. They are short-term government debt instruments with maturity of a year or less. The interest rates are based on the tenor.
  • Treasury Bonds: Treasury Bonds, like Treasury Bills, are government-issued debt instruments. However, they are mid- to long-term with a periodic fixed interest. Treasury Bonds provide secure investments and liquidity as you can sell them to other investors. The interest rate on bonds is generally greater than that of term deposits. In addition, you can earn Capital gains when their prices go up. You can also use them as collateral when borrowing a loan, or get regular payout Coupons according to your contract agreement.
  • EazzyFx: EazzyFx allows consumers to trade at competitive automated foreign market prices. It provides you with real-time streaming rates with a single click and allows multiple trade orders. In addition, for any FX trade amount, you may submit an RFQ (Request for Quotes) and get a complete trade process in real time.

KCB Bank Products

KCB Bank offers the following investment products;

  • Goal Account: KCB’s Goal Account is curated to help you reach your Chama goals. The product offers the highest-earning savings account in the country. It lets you lock your savings in a fixed deposit for periods ranging from 6 months to 5 years, with the option to borrow up to 100% of those funds. The Goal Account allows you to customize it to meet your needs. Thus, you can open several accounts to reach your goals faster.
  • Fixed Deposits: KCB has one of the most competitive savings interest rates of up to 6% p.a to get you closer to your financial goals. These competitive rates apply to both local and international currencies. However, the interest is only accumulated if the money is kept in the account for the set tenor.
  • Dual Currency Deposits: Dual currency deposit rates are higher than those offered by traditional money market investments, since they are guaranteed by a fixed interest rate. This product offers deposits with terms ranging from 1-3 months. During this period, capital protection is not guaranteed.
  • Treasury Bills & Bonds: Treasury Bills and Bonds are a safe and dependable source of income. KCB Capital manages the Treasury Bills and Bonds for you.
  • Call Deposits: Call Deposit is a service that pays interest and permits you to withdraw money from your investment account at any time without paying a penalty.
  • Custody Services: KCB provides safekeeping services to their customers. This means that they store your assets, financial instruments, securities, or title documents in an investment portfolio for you. This way, you can diversify your portfolio across the local and global money market funds. Some of the bank’s core customer support includes safeguarding your securities, providing proxy-voting services, monitoring compliance, collecting capital and income, completing investment transactions, processing corporate actions, and reporting activities—just to name a few.

Family Bank Products

Family Bank offers the following investment products;

  • Chama Investment Account: Chama Investment Account serves as a safe haven for informal and formal savings clusters, like self-help groups, limited companies, investment clubs, partnerships, merry-go-rounds, welfare groups, and dynamic organizations. It allows chamas to witness the growth of their investments. This product doesn’t charge any monthly fees and has no minimum monthly account balance. Some of its benefits include access to Chama loans that are 10 times the group savings and faster loan processing. The members are also qualified to join Family Bank’s Business Club, which provides them with international trip benefits, as well as express counter services. In addition, this product facilitates purchasing of treasury bills and bonds, commercial papers, and shares.
  • Call & Fixed Deposit Accounts: The call and fixed deposit accounts offer among the most competitive interest rates in the country, allowing a minimum deposit of Sh30,000. There are no fees imposed on a fixed deposit account. The banks also offer flexible tenors, i.e., 1,2,3,6, and 12 months. Family Bank gives you loans, up to 90% of the deposited amount, at lower interest rates since the deposit can be used as collateral.

NIC Bank Products

NCBA Investment Bank (NIC), NCBA Group PLC banking subsidiary, was established to provide financial services across advisory, brokerage, and investment. Some investment products include;

  • Call & Fixed Deposit Accounts: You can avoid the risk of declining interest rates by earning high rates of return with long-term fixed rates via a call deposit account. The fixed deposit account allows you to decide how much money you want to invest, with a one-month minimum investment term. The loan repayment has flexible options and can be settled at different intervals. However, the minimum amount you can deposit into a call and fix deposit account is Sh100,000.
  • Foreign Currency Solution: The foreign solution helps you leverage on the bank’s extensive experience and local knowledge to obtain unique insights and control your risks. Forex solution offers you competitive rates regardless of your financial objectives. Thus, you can make international payments, unlock global markets, and travel without difficulties. NCBA Foreign Solution enables you to convert currencies according to global standards within two working days. There are no minimum nor maximum deal sizes and is available to even those without NCBA bank accounts.
  • Hedging Solutions: This service provides peace of mind by allowing you to fix the prices of your inputs for a set period in the FX Options. This gives you time to respond to market changes without having to worry about fluctuating prices. The hedging solutions are available for both local and imported commodities. It also features FX Forward Contracts that offer a guaranteed exchange rate from a wide range of currency pairs. In addition, you can invest in NCBA Cross-Currency Swap so that you hedge against currencies and interest rate risks.
  • TradeFX: This cutting-edge electronic trading platform allows NCBA to prove real-time access to pricing for over 100 currency pairs during market hours for clients. It offers seamless, user-friendly, single-click transactions.
  • Money Market Deposits: This product enables you to pick from a variety of currencies and durations for potentially higher returns.
  • Bond Investments: Bond investments are a sure way of diversifying your portfolio while minimizing investment risks. NCBA provides you with various bond instruments, i.e., corporate and government bonds, fixed-rate bonds, floating-rate bonds, etc. In addition, the bank provides you with liquidity for both immediate and secondary flows.

Stanbic Bank Products

Stanbic Bank offers the following investment products;

  • Call Deposit Account: Stanbic Bank’s Call Deposit Account allows you to gain a higher return on investments (ROI). The investment can be liquidated anytime and can be used as collateral. It only requires a minimum initial deposit of Sh20,000 with no service fee. However, you can make unlimited deposits to earn competitive interest rates at existing market rates.
  • Fixed Deposit Account: Stanbic’s Fixed Deposit Account assures investors of a fixed return on their investment over a certain duration. The account is flexible, with no maximum deposit amount but with a minimum initial deposit of Sh20,000. However, the interest is paid upon maturity of the account.
  • PureSave Account: The PureSave Account service enables you to keep your spare cash to build up your financial reserve. The more money you save, the more money made from this investment service. Balances above Sh5,000 attract competitive interest rates. The product does not charge any monthly service fee and the deposit can be used as collateral when borrowing loans.
  • Foreign Exchange: The bank helps you mitigate the dangers of currency volatility by providing expert insights, transaction safety, and access to deeper liquidity pools.

Cooperative Bank Products

Cooperative Bank offers the following investment products;

  • Kingdom Securities: Kingdom Securities Limited (KSL) is an NSE-licensed stockbroker offering advisory and stock trading services. This product offers services like buying and selling of bonds and shares for clients, immobilization, transmissions, and share transfers. However, you must have a CBS account to invest in shares.
  • Co-op Trust Wealth Management Services: This service is ideal for high-net-worth individuals or businesses that intend to invest in short or fixed durations. The clients must also have a unique cash flow profile. Wealth management involves low-risk/risk-free investments like interest-bearing assets and government securities. The Wealth Management Fund can act as collateral when accessing bank loans and enables asset-liability modelling to minimize the chances of insolvency.
  • Custody and Investor Services: This product ensures that the consumer is protected and provides value to the beneficiaries. It is tailored to provide custody services to both individuals and corporates. Thus, it safeguards securities, conducts activity reporting, administers corporate actions, and collects capital and income. In addition, it settles investment instructions, processes payments, and provides CDS services for investments in bonds and securities.
  • Treasury Bonds & Treasury Bills: Treasury Bonds range between 2-30 years. The monthly bidding on Treasury Bonds is carried out at an auction. KCB customers can invest in this risk-free product for a guaranteed interest payment. The Treasury Bills, on the other hand, are available in weekly auctions. They are short-term investments running quarterly, bi-yearly, and yearly. The yields on these bills are discounted, so the profits are earned right away.
  • Call & Fixed Deposit Account: The Call Deposit Account allows consumers to invest a certain amount for an indefinite duration in the hopes of getting returns. 

The funds can be liquidated anytime after seven days from the day of deposit with prior 24-hour notice. On the other hand, the Fixed Deposit Account allows the consumer to deposit a certain amount for a fixed duration, after which the interest is payable on maturity.

Now that you know about some of the different investment products available from Kenyan banks, it’s time to start looking for one that best suits your needs. Be sure to compare interest rates, terms, and conditions before deciding. With a bit of effort, you should be able to find an investment product that will help you reach your financial goals.

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