Banks dangle carrots to garner more deposits

Before this present dispensation in the nation's financial sector, the culture of depositing money with banks used to be drab. But following the banking consolidation, which brought about series of mergers, thus reducing the number of banks to just 24, this is no longer the case.

At present, depositors are besieged with a plethora of bank products offering attractive benefits. As a result, the savings culture has increased, as depositors now have various benefits attached to the practice. This leaves hope that the future of the country is not bleak; after all, savings is the bedrock of any economy.

Given that some categories of customers, say low-income or average-income earners may have been incapacitated in their quest to relate with banks before now, it is noteworthy that everyone is covered in the variety of products currently available.

For instance, patrons of the Bank PHB Partners Account can now enjoy bonus interests for introducing new customers to the bank and as well earn interests on their deposits.

The Bank PHB Paytime product also enables customers to have stress-free access to funds before payday, making funds for exigencies easily accessible.

The bank also offers a "Phuture Account", which is a savings account for kids and teenagers. It supports parents and guardians in planning the education of their children or wards, featuring benefits that include: insurance cover, scholarship awards for beneficiaries and payment of high interests.

Also from Bank PHB is the "Possibilities", a bouquet of consumer banking products designed to make available to the banking public any asset of their choice such as cars, electronics, shares of quoted companies and landed property. A Variant of the bouquet is the Easy Life Scheme, which makes it easy for customers to buy any asset of their choice by paying just a fraction of the amount; while Bank PHB pays the balance. Following this, the buyer is allowed to pay the balance to Bank PHB over an agreed period.

Another variant is the Share Acquisition Scheme, which gives customers funds to purchase shares in quoted companies. All the rates charged are said to be low, with due consideration for the prevailing rates in recent times.

Recently, the bank organised a promotion tagged "Pot of Phortune", targeted at rewarding its existing customers and creating a platform for new ones that desire to benefit from its array of retail products.

To qualify, customers had to open an account with N1000 for a monthly draw, and were expected to have a minimum balance of N20, 000 in their accounts for every month's cut-off date. The winner got N1 million as star prize; while 20 others went home with a consolation price of N50, 000 each.

This compares with the Diamond Banking Savings Xtra bonuses, which will give out N200 million prizes to its lucky customers over a period of one year, starting from the end of July.

The Saving Xtra bonus, one of the innovative products that the bank promised with the launch of the Diamond Life Campaign, aims at making savings a rewarding and enjoyable experience for its customers.

Owners of Diamond Integrated Savings Account (DISA) or General Savings Account now have a chance to win N1million and a host of other prizes in the monthly and quarterly draws.

To qualify for the draw, a minimum balance of N10, 000 is required, which gives the accountholder a chance in the monthly and quarterly draws, and is open to both new and existing account holders.

The facility provides increasing chances of winning with N10, 000, which when left over a quarter, gives the account-holder a double chance to win while enjoying interest payments on savings.

What may be more exciting is that customers can also get an overdraft attracting five percent fixed-interest-rate charge on saved funds, to finance emergency needs while participating in the draws with their saved amounts.

Small savers smile with the EcoBank marketing strategy which offers free N1000 recharge cards to customers of the "EcoBank Welcome Account" (EWA); a special savings account for small savers.

EWA entitles the customer to a three-percent interest on deposits, a free ATM debit card, Internet access and SMS banking; as well as a recharge card of his or her choice network.

Nike Kolawole, Ecobank's head of Retail Liabilities, says the product is an improvement on other competing products in the banking industry and is designed to offer low-income earners the opportunity to benefit from banking services.

The recharge cards act as incentives to savers , especially those in the "small savers" category such as artisans, students and petty traders, as it offers them convenience and flexibility in their business transactions.

First Inland bank has also taken up the challenge of providing competitive customer- oriented packages, as it has created opportunities for its customers to enhance their lifestyle by introducing 11 lifestyle products geared at making their lives easier.

The products, which include Firstserve, LEAP, Esteem, Maxicash, Finesave, Xtra Lease, Naira Wise, E-Serve, Flashme Cash, Black Card and I-Pay, have been developed to support customers in meeting their various lifestyle needs, actualising their dreams and achieving their goals.

Okey Nwosu, managing director of the bank, says: "First-Serve LEAP (Leaders Education Account Plan) provides a window for parents and guardians to build up funds for the payment of their wards' school fees. The interest rate is two percent per annum."

Other benefits include insurance cover between 50 - 100 in cases of permanent disability and death; Flash Me Cash Club membership; school fee loan of up to 50 percent of account balance, and a Leap Education Club membership for children.

Another first-Serve product is AIM (All-Purpose Investment Master-Plan) for people desirous of growing a large pool of funds for specific needs.

The AIM account is open to individuals, traders and apprentices with an interest rate between two percent and five percent per annum and provides support of up to 50 per cent of account balance given to the account holder.

The FINSAVE (First Inland Savings Account), is a specialised savings product that offers the customer the benefits of current account features, and is designed to provide flexibility, accessibility, convenience and attractive interest rates.

Designed for non-borrowing individuals and sole proprietors, the account parades benefits like access to the bank's ATM's service (The Black Cards); withdrawals nationwide; allows third party withdrawals / dividend warrants and Flash Me Cash Club membership.

Others include the Naira Wise Account: a savings account that provides an avenue for artisans, traders, groups and associations to save regularly towards targeted goals, and also gives support on a rotational basis for members of groups / associations with an opening and minimum balance of N1000.

XTRA LEASE gives individuals and career-minded persons access to credit facilities for purchase of assets such as new or fairly used cars; personal computers / laptops; household equipment like cookers, TV, air conditioners, deep freezers, generating sets, washing machines and furniture with convenient repayment terms.

E-serve products are in three categories tagged: The Flash me Lifestyle, the I-pay Lifestyle, and the Black card Lifestyle. Flash-Me-Cash is a mobile payment solution that allows transfers and various payments via GSM phones, and electronic retrieval of recharge vouchers via phones.

Customers can purchase tickets for both local and international flights of any airline with a text message or the Flash-Me Cash Menu on their phone.

First Bank also parades a number of interesting retail-banking programmes with an applicable interest rate of 17.75 percent. They include:-

Revenue Loans For public sector establishments in an account relationship with the bank for at least six months.

Receivables/Invoice Finance Product Paper: For suppliers of goods and services having at least six months' relationship with the bank, gross annual turnover of N250 million for the business below tenor of 180 days, 10 million maximum and a less than 80 percent receivable loan.

Secured Short Term Loans and O/D: Maximum 25 percent of beneficiaries' annual turnover, one year audited statement, six months' banking statement.

LPO Finance Product Paper: Providing Small and Medium Enterprises (SMEs) with loan facilities of less than 80 percent of total purchase order, on which a management fee of 1 percent is charged.

Cash Covered Bonds and Guarantees Product Paper: Which requires a cashbacked collateral and a current account relationship with the bank, among others.

Other products, termed "U First" retail products, include First Bank- Personal Home Loans requiring an annual gross income of N500, 000 minimum, net monthly cash flow of 300 percent and a credit bureau report.

First Wifi Finance Scheme: Enabling the purchase of laptops that are internet-enabled. Requirements are a gross annual income of N300, 000 minimum; six months' bank statements, equity contribution of 30 percent and direct debit instruction via Interswitch.

Household Equipment Loans: Requiring gross annual income of N300, 000 minimum, six months' banks statements and a monthly repayment of 30 percent of net monthly salary; while auto loans also exist with similar conditions and attractive salary product packages.

What is worth noting are the rates paid on savings, which with the increase in rates charged on loans, is expected to push up further.

While rates charged on loans vary between 13 and 18 percent, depending on the amount borrowed and the duration, interest paid on savings varies on the basis of the amount saved, how long it is kept and the number of withdrawals in most Nigerian banks.