Find the highest interest rates on savings accounts in Kenya. Compare regular savings, fixed deposits, and notice accounts from top banks. Updated October 2025.
Savings accounts are essential financial tools that help Kenyans grow their wealth while maintaining access to their money. Whether you're saving for emergencies, future goals, or simply earning interest on your surplus funds, choosing the right savings account can make a significant difference to your financial health. In Kenya's dynamic banking sector, interest rates vary widely based on account type, minimum balance requirements, and banking relationships.
2-7%
Annual interest with easy access
7-12%
Higher rates for locked periods
5-9%
Better rates with notice periods
Regular savings accounts offer flexibility and liquidity while earning modest interest. These accounts are ideal for emergency funds and short-term savings where you need quick access to your money without penalties.
Kenya Commercial Bank
Editor's ChoiceKCB's Goal Savings Account offers competitive interest rates with no monthly fees. Earn bonus interest when you maintain consistent deposits. Free M-Banking and unlimited withdrawals. Perfect for building emergency funds with flexible access.
View Details âEquity Bank
Best Mobile BankingZero balance requirement makes this ideal for new savers. Integrated with Equity Mobile app for seamless transactions. Earn interest on any balance above KES 500. Free statements and M-Banking. Extensive ATM network across Kenya.
View Details âCo-operative Bank
Best for MembersCooperative members enjoy higher interest rates and preferential treatment. Dividend payouts in addition to regular interest. Free MCo-op Cash services and unlimited transactions. Strong community banking network across Kenya.
View Details âNCBA Bank Kenya
Modern digital-first savings account with excellent mobile app. Automatic savings features help you reach goals faster. No ledger fees for maintaining minimum balance. Instant account opening via USSD or app.
View Details âFixed deposit accounts offer significantly higher interest rates in exchange for locking your money for a specified period. They're perfect for medium to long-term savings where you don't need immediate access to funds.
Absa Bank Kenya
Highest RatesAbsa offers Kenya's most competitive fixed deposit rates. Automatic renewal option available. Interest paid monthly, quarterly, or at maturity. Loans available against your fixed deposit up to 90% of value.
View Details âStandard Chartered Kenya
Premium BankingPremium fixed deposit with excellent customer service. Multi-currency options available (USD, GBP, EUR). Priority banking relationship manager assigned. Higher rates for Priority and Wealth Management clients.
View Details âKenya Commercial Bank
Lowest minimum balance requirement for fixed deposits. Flexible terms from 1 month to 5 years. Easy account opening online or at any branch. Pre-mature withdrawal allowed with penalty of 2% interest.
View Details âNotice accounts bridge the gap between regular savings and fixed deposits. You earn higher interest than regular savings but need to give advance notice (typically 30-90 days) before making withdrawals.
32 days notice required. Min balance KES 50,000. Ideal for short-term savings with better rates than regular accounts.
90 days notice period. Min balance KES 100,000. Higher interest for longer notice period. No penalties if notice is given.
60 days notice. Min balance KES 75,000. Balanced option between access and returns. Free monthly statements.
| Bank | Account Type | Interest Rate | Min Opening | Min Balance | Monthly Fee |
|---|---|---|---|---|---|
| KCB | Goal Savings | 6.5% | KES 100 | KES 1,000 | Free |
| Equity | Smart Savings | 5.5% | KES 0 | KES 0 | Free |
| Co-op Bank | Savings Account | 7% | KES 500 | KES 500 | Free |
| NCBA | Loop Savings | 6% | KES 1,000 | KES 1,000 | Free |
| Absa | Timiza Savings | 5% | KES 0 | KES 0 | Free |
Selecting the right savings account depends on your financial goals, liquidity needs, and saving habits. Consider these key factors when making your decision:
While interest rates are important, they shouldn't be your only consideration. Higher rates often come with restrictions like minimum balances or limited access. Calculate the actual earnings based on your expected average balance.
Monthly ledger fees, transaction charges, and ATM fees can significantly reduce your returns. Many banks now offer free savings accounts with no monthly charges if you maintain a minimum balance.
Consider how easily you can access your money when needed. Factors to evaluate include:
Be realistic about the balance you can maintain. Frequent dips below the minimum balance can result in penalties that wipe out your interest earnings. If your income is irregular, choose accounts with low or zero minimum balance requirements.
Modern savings accounts come with value-added services that can enhance your banking experience:
Use a regular savings account for emergency funds and short-term goals, while locking surplus funds in fixed deposits or notice accounts for higher returns. This strategy balances liquidity with returns.
Interest rates change frequently based on Central Bank of Kenya policy rates. Review your account quarterly to ensure you're still getting competitive rates. Don't hesitate to switch banks if you find significantly better terms elsewhere.
Pro Tip: The CBK benchmark rate directly influences savings rates. When the CBR increases, banks typically raise savings rates within 1-2 months.
Set up standing orders to automatically transfer money from your salary account to your savings account every month. This "pay yourself first" strategy ensures consistent savings growth regardless of spending temptations.
Banks often run promotions offering higher interest rates for new customers or specific deposit amounts. Watch for these opportunities, but always read the fine print regarding duration and conditions.
Instead of putting all your money in one long-term fixed deposit, split it into multiple deposits with staggered maturity dates. This strategy provides regular access to portions of your money while maintaining higher overall returns.
Interest earned on savings accounts above KES 25,000 per year is subject to 15% withholding tax in Kenya. The bank automatically deducts this tax before crediting your account. Factor this into your returns calculation when comparing accounts.
Check your savings account at least monthly to verify interest credits, identify unauthorized transactions, and track progress toward your goals. Most banks offer free mobile banking apps with real-time balance updates and transaction alerts.
Long-standing customers often get preferential interest rates, especially on fixed deposits. Consolidating your banking relationships with one primary bank can unlock premium rates and additional benefits like lower loan rates and fee waivers.
Kenya's banking sector has embraced digital transformation, with many banks now offering digital-only savings accounts. Understanding the differences helps you choose the right option for your needs.
Best for: Tech-savvy users who primarily transact digitally and value convenience over branch services.
Best for: Users who prefer in-person banking, deal with cash frequently, or want comprehensive financial guidance.
As of October 2025, fixed deposit accounts offer the highest rates, ranging from 10-12% per annum for 12-month terms at banks like Absa and Standard Chartered. Regular savings accounts typically offer 5-7% per annum. Rates vary based on deposit amount and banking relationship.
Most Kenyan banks calculate interest daily based on your minimum monthly balance, then credit it to your account monthly, quarterly, or annually depending on the account type. The formula is: Interest = (Principal à Rate à Time) / 365. Remember that 15% withholding tax is deducted on interest above KES 25,000 per year.
Yes, most major Kenyan banks now offer online account opening. You can open accounts through bank websites, mobile apps, or USSD codes. You'll need your ID number, KRA PIN, and sometimes a selfie for verification. Digital accounts like Equity Smart Savings and NCBA Loop can be opened in minutes with zero initial deposit.
Basic requirements include: National ID or passport, KRA PIN certificate, and passport-size photos. Some banks may request proof of residence (utility bill or rental agreement) and employment details. For digital accounts, you may only need your ID number and a smartphone for biometric verification.
Yes, the Kenya Deposit Insurance Corporation (KDIC) protects deposits up to KES 500,000 per depositor per bank. This means if a bank fails, you're guaranteed to recover up to KES 500,000. For amounts exceeding this, consider spreading deposits across multiple banks for full protection.
Choose based on your liquidity needs. Fixed deposits offer 3-5% higher interest rates but lock your money for specific periods (1-12 months typically). Regular savings accounts provide immediate access but lower returns. A balanced approach is to keep 3-6 months of expenses in regular savings for emergencies and lock surplus funds in fixed deposits for better returns.
For regular savings accounts, yes, you can withdraw anytime through ATMs, branches, or mobile banking. However, fixed deposits require you to wait until maturity, though some banks allow early withdrawal with interest penalties. Notice accounts require advance notice (30-90 days) before withdrawals.
Most banks charge a penalty fee (typically KES 100-500) and may not pay interest for that month. Some digital banks with zero minimum balance don't penalize you. If you frequently dip below the minimum, consider switching to an account with lower or no minimum balance requirements.
Compare savings accounts from 15+ Kenyan banks and start earning more on your money today.
Complete guide to mortgage application, eligibility, and approval process in Kenya.
Compare rewards, fees, and benefits of top credit cards in Kenya.
Explore the best banking apps, features, and security tips for digital banking.