RBZ Raises Interest Rates On Savings Accounts, Scraps Small Transaction Fees
The Reserve Bank of Zimbabwe has instructed banks to raise interest rates on savings and time deposits to promote a banking and savings culture in the economy and to remove transaction fees for amounts of US$5 or less (or the equivalent in Zimbabwe Gold, ZiG).
In his 2025 Monetary Policy Statement, RBZ Governor John Mushayavanhu announced these changes as part of a series of new policies.
The interest on ZiG savings accounts has increased from 3.5% to 5%, and from 5% to 7% for time deposits.
For USD savings accounts, the interest rate has gone up from 1% to 2.5%, and from 2.5% to 4% for time deposits. Said Mushayavanhu:
The Reserve Bank encourages banks to offer depositors more than the stipulated minimum deposit rates, to promote a banking and savings culture in the economy
Depositors should take advantage of these interest rates to place their savings in these interest-bearing savings and time deposit accounts as opposed to noninterest-bearing current accounts.
The Reserve Bank has engaged the Bankers Association of Zimbabwe (BAZ) to ensure that the banking system encourages their depositors to make use of these interest-bearing deposit accounts through awareness campaign programmes and promotions
The central bank also instructed banks to remove all fees for transactions worth US$5 or less (or the equivalent in ZiG). Said Mushayavanhu:
Domestic stakeholders consulted by the Reserve Bank bemoaned the current high levels of bank charges obtaining in the banking sector.
The Reserve Bank will continue to ensure that banks strictly adhere to a policy compelling them to exempt from bank charges, all accounts that maintain a balance below US$100 or its equivalent in ZiG.
In addition, Point of Sale (POS) transactions for amounts less than US$5 or its equivalent in ZiG are also exempted from transaction charges, for both banking institutions and Payment System Providers (PSPs).
The Reserve Bank is also working with BAZ and PSPs to come up with mechanisms to minimise bank charges and encourage use of e-cash to promote ZiG. These mechanisms will be finalised and communicated before the end of the first half of 2025.
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