I have been looking at the interests given to fixed deposit by banks...they appear to have a significant return on investment!!! For instance, Ecobank offers 3.5% for one month....if for instance I invest 100000 for a month, i will get 3500 as interest, then if i renew my investment monthly for one year...i will have a compounded interest of around 42000....minus tax...i will be left with like 34000.....so my investment will have grown by 34%....(the figures are estimates) Wazurians, DONT YOU THINK THIS IS A GOOD RETURN ON INVESTMENT?????

@not-so-astute The 3.5% is an annualized rate...

LOL... I wud move 100% to Ecobank

and you trust the journalists, ha ha ha!!!!

Please... Kenya newspapers concentrate so much on politics they forget its BIASHARA/economics that really count!

If Kenyans paid less attention to politics & more on the economy, we would be better off...

@astute the rate is annualized and this is the exact thing people confuse with T-bills.. for example a 182day T-bill of 6% will yield 3% because it is annualized but the rate attached is 6% because banks annualize everything...

if still in doubt ask yourself what Ecobank has to invest in to pay its customers 42% per annum unless they want to go bankrupt

@astute;

I don't think it is a case of the writer misLeading the reader, but rather a case of the reader misReading writer!

What the table in the newspaper means is that if you deposit for one month, you will get 3.5%pa; and when you deposit for 3months, you will get, say, 3.75pa and so on.

You misRead that to mean 3.5%pm. But that wouldn't make sense when compared to the 3-month rate of 3.75%pQ. It would imply that keeping the money longer pays less!!

@youcan'tstopusnow; 35%pa is not "unheard of". I got higher than that regularly from T-bills in the early 1990s - soon after Patni walked away with unknown billions from CBK.