Tanzania: Prospective Retirees Told to Invest in Bank Products

FINANCIAL institutions have urged prospective retirees to make efficient use of banks' products for saving that will enable them to earn monthly packages after the end of their tenure in offices.

The call was made by various stakeholders on Tuesday during a seminar to members of the Public Service Social Security Fund (PSSSF), aimed at educating participants on how effectively they can generate incomes after retirement.

The CRDB Relations Manager for Retirees, Optune Kaihula mentioned one of the products that suit retirees as 'Thamani Account', an investment bank product that allows customers to invest funds in fixedterm for three years, at competitive returns, while interest is being paid every month.

One can opt to renew the account after three years since the Bank's aim is to maintain retirees' monthly packages, just to make them feel like they are still at work, she said. Ms Kaihula said that CRDB also offers a "Pensioners Account" product, which is specifically for people with 50 years and above.

"This is a saving account designed for retirees to enable them with a safer way to receive gratuity and monthly pensions as well as other incomes," she said, stressing that: The bank product also fits retirees as it is of zero openings and operating balance as well as (zero) maintenance fee, with 500,000/- minimum interest bearing amount.

For her part, NMB Manager for Employee Banking, Ms Nyamisinda Manyonyi told the participants that the bank offers lots of products for them, including the 'Bonus Account' in which a beneficiary can invest and earn income in line with the deposited amount.

According to her, beneficiaries should avoid frequent withdrawal to accumulate heavy monthly interest that the Bank pays them.

"One should at least make a single withdrawal, quarterly. Otherwise, she/he will be losing monthly packages," she said.

Gracing the seminar, the Regional Commissioner, Robert Gabriel urged the participants to regularly consult experts before venturing in investment, once receiving their pensions

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