Compiled by Elizabeth Ndhlovu-Dumbreni What is Savings “SAVINGS” is term that is used in different contexts and therefore it is interpreted differently depending on the context to which it is being applied. Strydom (2007) defines saving as a macro environment concept that refers to income that is not consumed in a particular period.
The business directory (www.businessdictionary.com) defines savings as the portion of disposable income not spent on the consumption of consumer goods, but accumulated or invested-directly in capital equipment, by paying off a home mortgage or indirectly through the purchase of security. The other form of savings is by putting aside income in a bank or financial services provider, investing in a pension plan or in other forms of income generating investments. The macroeconomic and business definitions do not differ materially, as the ultimate meaning of savings implies deferred consumption of income.
Zimbabwean scenario The economic meltdown that has and is being experienced in Zimbabwe has severely put a dent on the savings culture that prevailed in the 1980s and 1990s. Most families are in consumptive mode due to the low income levels and high cost of living. However in such an environment it is still prudent to encourage a savings culture regardless of the level of incomes or how much can be saved. Transaction based accounts have dominated the product menus on offer by banking institutions. CBZ Bank Ld, the country‘s leading bank by deposits and assets has come on board to champion the restoration of a savings culture in Zimbabwe. In line with the strategy to offer innovative products to our clients CBZ Bank is pleased to introduce a new high interest earning account, the CashPlus Savings Account. This new product offers competitive tiered interest rates and free banking services to clients. The product has five facets to it, namely:
Cashplus Individual Account Cashplus Business Account Cashplus Housing Account. Cashplus Teen Account Cashplus Junior Account
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The following features are peculiar to each account: Minimum Balance of US$50 (except the junior and teen account with minimum balance of US$20) No maintenance and cash withdrawal fees Interest calculated on minimum monthly balance and paid monthly. Tiered interest rates.
Cashplus -Individual This is aimed at individuals who want to save towards something, it could be a wedding a holiday or purchasing an asset. To encourage disciplined saving, no withdraws are allowed for the first 90 days. Thereafter, a client is free to withdraw part or the full amount. If client chooses the former option the next withdrawal will be effected after another 90 days, and the cycle continues in that order.
Cashplus Housing Account The CashPlus — Housing Account is a high interest earning savings account which allows clients to save funds towards purchase of houses or housing stands as well as construction. The client will save half or more towards the purchase price or cost of construction, with the bank matching the customer’s contribution in the form of a mortgage loan. No withdrawals are permitted for a period of one year. Access to mortgage finance is commensurate with the client’s requirements. Currently the tenure ranges from two to 10 years.
Cashplus Teen Account The CashPlus Teen Account is a savings account for teenagers to save funds for their daily needs and encourage them to understand and assimilate a saving culture. The product encompasses the following features: Four free cash withdrawals per month. ATM debit card. SMS alerts. SMS banking.
Cashplus Junior Account The CashPlus Junior Account is a savings account for children under the age of 12 which is operated by the parent/guardian. Regular deposits are to be made into the account by the parent/guardian among other features detailed hereunder: Minimum investment period of six months. One free withdrawal per month from the seventh month. CBZ Bank Ltd is committed to encouraging a savings culture in Zimbabwe as this will unlock the great potential in the economy and stimulate positive economic growth.
