M-Shwari lock savings account allows M-Pesa clients to set aside some funds for a specific purpose within a specified amount of time. This account is ideal for customers looking for high-interest rates and those that wish to keep their money safely for a period of between one to six months. The funds are kept in the account until the maturity date.
Most Kenyans know M-Shwari as a mobile loan application that allows them to access a quick loan when in dire need of emergency cash. However, they do not know that they can use their M-Shwari account to save money and earn interest. M-Shwari functions the same way as the bank savings accounts that are linked to the M-Pesa account.
How M-Shwari lock savings account works
To open and save into the lock savings account, you must be an M-Shwari customer. Follow this procedure to join M-Shwari and begin saving on the platform;
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- Open the M-Pesa menu on your mobile phone
- Select the loans and savings option
- Choose M-Shwari and select Lock Savings Account
- Select to either save from M-Pesa or M-Shwari
- Enter the M-Shwari lock savings account target amount, which is the amount of money that you desire to save at the end of the maturity date.
- Choose the period between 1 and 6 months
- Enter the amount to save
- Enter the M-Pesa pin to complete the transaction
- You will receive a confirmation SMS that you have successfully set up your Lock Savings Account
- The next time you wish to save some money into the account repeat the above procedure.
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M-Shwari lock savings account interest rates
The M-Shwari savings lock account interest rates calculator computes interest earned on a daily basis which is normally paid out on the maturity date set by the customer. Interest rates for the lock savings account are as follows;
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- 3 percent per annum for savings of Kshs 1 – Kshs 20000
- 5 percent per annum for savings of Kshs 20001 – Kshs 50000
- 6 percent per annum for savings of more than Kshs 50001
M-Shwari lock savings account terms and conditions
Before you save money in the lock savings account, you must read and understand the terms and conditions governing the use and operation of the account. To accept the terms and conditions, click “Accept” on the M-Shwari menu that requests you to confirm that you have read, understood, and agreed to abide by the terms and conditions. You should click on “Decline” on the M-Shwari menu if you do not agree with the terms and conditions.
M-Shwari lock savings account withdrawal
Upon maturity, you will receive a notification SMS from M-Shwari informing you of the amount you saved and the interest earned. You should move the money from M-Shwari to M-Pesa then proceed to submit a withdrawal request.
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Did you know that you can withdraw funds from the lock savings account M-Shwari before the maturity period? However, you can only receive the requested amount after 48 hours. Customers have the option of either withdrawing the entire amount “Break Lock” or making a partial withdrawal of the funds “Partial Lock”.
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Frequently asked questions (FAQs)
The following are some of the most FAQs that customers using the M-Shwari lock savings platform ask.
Do you earn interest when you save on M-Shwari lock savings?
Safaricom does not levy charges on the M-Shwari lock savings account. The savings account earns an interest of up to 7% per annum if the money is retained in the account until maturity. The interest is earned daily but is paid out monthly into the lock savings account.
What is the maximum amount that M-Pesa can hold?
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When withdrawing funds from your M-Shwari account, it is important to take note of the maximum amount of money that your M-Pesa account can hold. The maximum account balance that your M-Pesa account can hold is Kshs 100000. The maximum amount of money that you can withdraw from your M-Pesa account is Kshs 70000.
What is a fixed savings account?
A fixed savings account is similar to a savings account. The only exception is that you are denied access to the funds for an agreed period of time, which could be either one month, 3 months, 6 months or one year. The longer the money stays in the account, the higher the interest rates.
How much do savings accounts earn interest?
Savings accounts are offered by most banks in the country. The savings account allows people to keep their money in a safe place and earn a small amount of interest each month or year. The amount of interest earned on the savings varies among financial institutions.
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If you have some money that you want to save in an account that will earn you high-interest rates, then M-Shwari lock savings account should be on top of your list. You can easily withdraw your funds from your M-Shwari account at maturity. Do not panic if an emergency comes your way before the maturity date because you can still withdraw your money and get it after 48 hours.
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Source: TUKO.co.ke
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