Adulting can be…🥴especially when it comes to managing your finances. With so many options available it can be challenging to determine which bank accounts are well suited for your needs. And what better tool to harness your financial prowess than a curated selection of bank accounts? In this somewhat witty blog, we will explore bank accounts that every Kenyan millennial certainly must have. Based on our love for technology, convenience and financial success. So buckle up!

Checking Accounts

A checking account is basically a pool for all your income channels. It is designed to hold funds that you plan to spend or use. It allows deposits and withdrawals as needed.

Ultimately, the number of checking accounts one needs depends on your goals, spending habits and a bunch of other stuff. Having too many accounts though can complicate things. Some experts encourage having at least two checking accounts: one to receive all your money and the other to manage your expenses.

In Kenya, these types of bank accounts are mostly referred to as Current Accounts in the banking sector.

Savings Account

A Savings account is a bank account that allows you to save money while earning interest on your balance. Since the primary goal of this account is saving, most of these accounts have limited withdrawals and little to no fees. One such example is the Stanbic Pure Save account.

This would be a really good choice but in this day and age, why settle for saving in a bank account when you can save where banks save?

Let’s face it- Saving money isn’t always a millennial’s forte. That’s why it is crucial to have an account specifically to encourage and reward saving habits. Seek out a Money Market fund account (MMF). Interest rates are generally higher than a regular savings account.

Should you get the right MMF, it could act both as your Savings account and an Emergency fund account.

A Credit Account

Better yet, a Sacco.

Credit/Loans can be either good or bad, depending on how they are used and the overall cost of borrowing. Good credit is essential for achieving financial success.

Why bother joining a Sacco when your local bank can give you credit? It’s simple FEES! and a list of other factors I won’t bore you with. Generally, Commercial banks’ interest rates are higher and can change depending on how CBK dictates, whereas Saccos simply do not change.

Of Course, there are a number of items to consider before joining a Sacco, so do your due diligence.

Investment Account

Whatever your investing goals may be, you definitely need an Investment account that allows you to ‘check’ and manage your investment portfolio without much hassle.

In Kenya, I’m only aware of two such accounts:

• CDSC Account – Its an electronic account that holds your shares & manages the process of transferring shares that are traded in the NSE ( Nairobi Securities Exchange). You can open one through a stock broker, an Investment Bank or your custodian bank.
• C.B.K CDS Account – Its an electronic account managed by the Central Bank of Kenya. It holds and manages the purchase and sale of an investor’s Treasury Bills and Bonds.

Overall, having these accounts is essential for one’s personal finances. By selecting the optimal mix of accounts and leveraging their benefits you are well on your way to financial freedom.

I hope this was helpful. Keep eyes on your paper. Always ! Stay safe, adios.