Kigali — The commercial bank of Rwanda's (bcr) saving promotion campaign has surpassed its Rwf3billion (US$5.5million) first year target.
Started in June 2006, the 4to4 deposit campaign aims to promote a savings culture among Rwandans according to the marketing and communications manager Mr. Hannington Namara.
During a draw for 4to4 clients held at the bcr headquarters in Kigali on May 11, several prizes were given to participants in the campaign.
One is required to open a deposit account with Rwf200, 000 ($370) and leave it untouched for 4months hence the campaign name 4to4.
By encouraging a savings culture, the bank hopes to build on its deposits and in the long run have more money that can be lent to credible and innovative business enterprises especially the small and medium enterprise sector.
At the prize draws held in the different provinces in Rwanda with bcr branches, Friesian cows, television sets and radios were dished out to lucky winners.
Outside Kigali, raffle draws for 4to4 clients were held in Byumba (northern province), Butare (south) and Gisenyi in the north western part of the country. The bank has received a higher response than expected.
"We want to motivate Rwandans to save and get value for their money. We give out cows as a top prize because we see them as valuable assets. We have hit above our set target which was Rwf3billion for the first year of the campaign," Namara told Business Week.
The television sets and radios given to lucky 4to4 depositors are valued at about Rwf3.5million ($6,500).
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As a 4to4 depositor, one gets to accumulate interest on the money saved on the account. The accounts immediately start making interest depending on the balance therein.
Interest is calculated on a daily basis and credited at the end of every month.
Deposits ranging from Rwf200, 000 ($370) to Rwf999, 999 ($1,851) earn an interest of 5% over 12 months.
Those from Rwf1, 000,000 ($1,851) to Rwf4, 999,999 (about $9,259) earn an interest of 6% over 12months while deposits from Rwf5,000,000 ($9,259) to 24,999,999 (about $46,296) earn an interest of 7% in the same period. Deposits exceeding Rwf25million ($46,296) earn an interest that is negotiable with the bank.
With 4to4 account, a depositor decides when he or she wants the money back, as and when the need arises. The account holder gets into agreement with the bank which 'locks' the money for 4months.
One may choose to either renew or terminate this contract at the end of each month. A three months notice is required before one can terminate the contract.
In addition to the interest rates, a 4to4 account holder is entitled to free standing orders from ones current account to the 4to4 account.
To enjoy this benefit, at least $370 (Rwf200, 000) needs to be maintained as the minimum balance after any withdrawal.
One is also entitled to take a personal loan at anytime guaranteed against the 4to4 account.
