Stanbic IBTC Bank has introduced a new savings account that will enable Nigerians to achieve their savings and investment objectives. The Max Yield Savings Account (MYSA) is a fixed deposit-type with a high-interest rate at 6.2 per cent per annum.
Designed specifically targets medium account holders- The account was created to meet the saving needs of medium account holders who are unable to afford a fixed deposit account but yearning for such. The bank plans to capture this banking segment with a two-in-one account for the willing customers.
A minimum of N100,000 balance- The investment account has a savings balance of N100,000 and above, and it’s structured to help customers achieve specific purposes and projects, while the bank also aims to maximise returns on each savings or investment.
“Max Yield was developed to ensure customers get better returns on their savings, which we believe will help them achieve their savings and investment objectives in a disciplined and profitable way.
“Although one of the set objectives of Max Yield is maximising returns on savings/investments, funds invested or saved in this account are left readily available and accessible to the account holders.”
In collision course with Fintechs?
Fintechs’s ingenuity paved way for them – In recent times, financial technology companies have been trying to position themselves as the go-to financial services solution providers in the country. They specifically target low-and middle income earners looking to either invest or save their income.
Retaking market share from fintechs- Fixed and lower interest rates on loans as well as higher yields on savings are some of the factors that have enabled fintechs to gain relative popularity among Nigerians. And now, with the introduction of Max Yield Savings Account, Stanbic IBTC is looking to retake the share.
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It should be noted that some Nigerian commercial banks have long ignored some segments of the banking population, a situation that gave fintech companies (like PiggyVest, Paylater) the opportunity to thrive.
Can Stanbic IBTC survive fintechs?
The Max Yield Savings Account can be perceived by some people as straight out of the Playbook of fintech companies. But can Stanbic IBTC Bank play the game just as well? The answer is yes. First of all, the bank is better established, with many years of experience as well as reputation in the financial services sector.