The economic slowdown resulting from Covid-19 pandemic has been a stark reminder of the need to make financial savings in the event of a rainy day and reduce reliance on debt to fund one’s expenditure. To ease the savings process, Banque Populaire du Rwanda Plc facilitates individuals who have savings ambitions through multiple products including some tailor made for children under the age of 18. For instance, through the product dubbed Gwiza savings account, individuals (salaried and self-employed) can meet their savings goals and ambitions. Essentially, a savings account is a deposit account that’s designed to hold money you don’t need or plan to spend right away. The account has a minimum balance of Rwf 5,000, meaning that clients’ balance cannot go below the amount. Savings earn an interest which is up to 8 per cent per annum with interest calculated on a Monthly Minimum Balance and paid out once annually. Clients have the liberty to withdraw at least once a quarter up to 30 per cent on the saving account. A second withdrawal in a quarter attracts loss of interest in that quarter. Such products have been termed by experts as an ideal way to build savings as they stand in when personal savings discipline may falter. To get young ones started on the savings journey early enough, the bank has an Abana saving account, tailored for children of 18 years of age and under. The account is opened in the name of the child with an adult (Parent, guardian or caretaker) acting as a proxy/representative for the child. The minimum account balance is Rwf10,000 with savings earning an interest rate of up to 8 per cent per annum. However, interest for this junior savers’ account is calculated on the basis of monthly balance and paid once a year. The account has no minimum monthly savings with withdrawals using bank receipts being free of charge. Clients can open a Gwiza and Abana savings account at any BPR Plc branch countrywide and commence their savings journey with the bank. While most save what is left off their monthly expenditure, financial experts advise that savings should have a specified amount and put aside before expenditure. This they say serves to foster discipline. Having a set savings goal or target has also been termed as necessary in one’s savings journey as it can serve as a motivation in the process and keeps one going.
