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FIXED DEPOSIT TERMS
Rank: Member Joined: 9/23/2011 Posts: 175 Location: Nairobi
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When does your fixed deposit mature? Let's say you put your money in a fixed deposit account on the 10th of april,2012- will it mature on the 10th of april next year?
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Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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I think so if UA deposit duration is one calender year,but six months late if its half year.
Buy the way whats the interest percentage for the high yield fixed deposit at standard bank,they dont answer my emails, am in rural!
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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madammary wrote:When does your fixed deposit mature? Let's say you put your money in a fixed deposit account on the 10th of april,2012- will it mature on the 10th of april next year? Correct. Only if it is a One Year Fixed Deposit. Be sure to read the renewal instructions! Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 1/27/2011 Posts: 1,777
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Pesa Nane wrote:madammary wrote:When does your fixed deposit mature? Let's say you put your money in a fixed deposit account on the 10th of april,2012- will it mature on the 10th of april next year? Correct. Only if it is a One Year Fixed Deposit. Be sure to read the renewal instructions! What happens when u have automatic renewal after a year and u need the cash at the end of the fixed deposit term of one year,do you lose anything or do u get penalised?
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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josiah33 wrote:
What happens when u have automatic renewal after a year and u need the cash at the end of the fixed deposit term of one year,do you lose anything or do u get penalised?
Issue new instructions within the stipulated period, if any, Otherwise... straight to penalty shootouts, no extra time.  Pesa Nane plans to be shilingi when he grows up.
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Rank: Member Joined: 9/23/2011 Posts: 175 Location: Nairobi
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Ok, if u put money in a fixed account for one year and it's supposed to have automatic renewal after an year and you decided to get your money at the end of the one year, do u get penalised just because the term was never renewed?
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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madammary wrote:Ok, if u put money in a fixed account for one year and it's supposed to have automatic renewal after an year and you decided to get your money at the end of the one year, do u get penalised just because the term was never renewed? Nope, You only get penalized for terminated contracts. If the renewal term has began as a result of your instructions (new or inherited from previous term) you will be penalized for the termination. To simplify, always issue instruction against automatic renewal unless otherwise the bank is instructed by you in writing. Pesa Nane plans to be shilingi when he grows up.
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Rank: Member Joined: 1/14/2012 Posts: 201 Location: nairobi
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Pesa Nane wrote:madammary wrote:Ok, if u put money in a fixed account for one year and it's supposed to have automatic renewal after an year and you decided to get your money at the end of the one year, do u get penalised just because the term was never renewed? Nope, You only get penalized for terminated contracts. If the renewal term has began as a result of your instructions (new or inherited from previous term) you will be penalized for the termination. To simplify, always issue instruction against automatic renewal unless otherwise the bank is instructed by you in writing. ok, at the end of the term period, is my money credited to my account(that is if the money for the fixed deposit came from your other account with the same bank and the account number is provided when taking out the fixed deposit) LIFE IS SO GOOD
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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bigbossman wrote:
ok, at the end of the term period, is my money credited to my account(that is if the money for the fixed deposit came from your other account with the same bank and the account number is provided when taking out the fixed deposit)
When you issue your instructions, the principal is withdrawn from your account and held in a (virtual) holding account in your name. On maturity, the principal + interest is credited back to your account in cases on non-renewal. You may also issue instructions to renew plus or minus the interest. When the interest is not re-invested, the sums are credited back to your account. Pesa Nane plans to be shilingi when he grows up.
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Rank: Member Joined: 1/14/2012 Posts: 201 Location: nairobi
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Pesa Nane wrote:bigbossman wrote:
ok, at the end of the term period, is my money credited to my account(that is if the money for the fixed deposit came from your other account with the same bank and the account number is provided when taking out the fixed deposit)
When you issue your instructions, the principal is withdrawn from your account and held in a (virtual) holding account in your name. On maturity, the principal + interest is credited back to your account in cases on non-renewal. You may also issue instructions to renew plus or minus the interest. When the interest is not re-invested, the sums are credited back to your account. thanx for your info. LIFE IS SO GOOD
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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madammary wrote:Ok, if u put money in a fixed account for one year and it's supposed to have automatic renewal after an year and you decided to get your money at the end of the one year, do u get penalised just because the term was never renewed? Why in the name of all things beautiful would a fixed deposit account have automatic renewal? If that happens, then it is no longer FIXED DEPOSIT. Fixed deposit means fixed interest for a fixed period of time. If there is automatic renewal, then that is just a savings account with very restrictive withdrawal terms! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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mukiha wrote:madammary wrote:Ok, if u put money in a fixed account for one year and it's supposed to have automatic renewal after an year and you decided to get your money at the end of the one year, do u get penalised just because the term was never renewed? Why in the name of all things beautiful would a fixed deposit account have automatic renewal? If that happens, then it is no longer FIXED DEPOSIT. Fixed deposit means fixed interest for a fixed period of time. If there is automatic renewal, then that is just a savings account with very restrictive withdrawal terms! @Mukiha, you can't be any more wrong. Banks need to make money and they have become very creative (good ol' days no more). Pick an application form and read it through. Pesa Nane plans to be shilingi when he grows up.
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Why do people ask questions that can be answered by a few phone calls? Are they trying to save on airtime? It's annoying!
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Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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chiaroscuro wrote:Why do people ask questions that can be answered by a few phone calls? Are they trying to save on airtime? It's annoying! People don't trust the banks,ni wakora!
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ngong wrote:chiaroscuro wrote:Why do people ask questions that can be answered by a few phone calls? Are they trying to save on airtime? It's annoying! People don't trust the banks,ni wakora! and some customer service people are quite ignorant with misleading and contradictory answers on their products. been a victim many times. only that i am well conversant with banking products so if you are bluffing, there and then i tell you. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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Any info on Dollar FDR? Which financial institutions offer this? And what to look out for (hidden charges, who to talk to to negotiate a rate etc)
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Rank: Member Joined: 11/17/2009 Posts: 398 Location: Where everyone knows you
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I have fixed deposit accounts at several banks - all for one year.
There is no automatic renewal.
Before the end of the term YOU decide if you want to renew, and hassle for the best new rate of interest. If you agree it is renewed at the new rate. If not you get your capital plus interest and can shop around for a better rate.
At the moment, out of the "safe" banks I think I&M give a good rate.
Otherwise go for T bills or Bonds.
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Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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MatataMingi wrote:I have fixed deposit accounts at several banks - all for one year.
There is no automatic renewal.
Before the end of the term YOU decide if you want to renew, and hassle for the best new rate of interest. If you agree it is renewed at the new rate. If not you get your capital plus interest and can shop around for a better rate.
At the moment, out of the "safe" banks I think I&M give a good rate.
Otherwise go for T bills or Bonds. What are the current rates for say 1M 1 Year. Do they have also for USD?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Ngong wrote:MatataMingi wrote:I have fixed deposit accounts at several banks - all for one year.
There is no automatic renewal.
Before the end of the term YOU decide if you want to renew, and hassle for the best new rate of interest. If you agree it is renewed at the new rate. If not you get your capital plus interest and can shop around for a better rate.
At the moment, out of the "safe" banks I think I&M give a good rate.
Otherwise go for T bills or Bonds. What are the current rates for say 1M 1 Year. Do they have also for USD? Read this: http://www.imbank.com/business/interest-rates/Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Hello Joined: 1/25/2013 Posts: 7
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