Zemen Bank announces that its interest rate for saving deposits has been raised to 5.5 percent effective December 1, 2010.
This new interest rate applies to all savings account holders who maintain a minimum balance of Birr 25,000. Zemen Bank is further pleased to announce that it offers even higher interest rates for depositors who place very large deposits with the Bank. For savings account holders who maintain a minimum of Birr 500,000 in their accounts, the Bank now offers an interest rate of 5.75 percent.
Zemen Bank’s increase in interest rates follows the National Bank of Ethiopia’s adjustment—from 4.0 to 5.0 percent—in the minimum savings rate. As before, Zemen Bank has chosen to offer its customers the special benefit of receiving a rate that is higher than the minimum regulatory requirement. Zemen Bank had previously offered its customers a rate of 4.5 percent compared to the 4.0 percent average that prevailed in the industry.
As part of the adjustment in interest rates, the Bank has just launched an extensive marketing campaign in several major newspapers. The campaign emphasizes several other benefits offered by the bank, including free debit cards offered to account holders to access ATMs and free Internet Banking.
Zemen Bank was founded in October 2008 with around 2800 shareholders. The Bank’s net profit in the just completed fiscal year was Birr 42 million, equivalent to a return on equity of near 40 percent. The Bank’s distinctive business model is based on a single branch whose activities are to be supplemented by multiple service points such as ATMs, POS terminals, Foreign Exchange Bureaus, and Banking Kiosks.