The conclusion of the Chase Bank SBM deal after Central Bank adjusted lending rates has handed depositors a Sh150 million haircut after the rate was locked at 6.65 percent.
When the deal was announced in January, depositors were set to get 7 percent interest on portions placed as term deposits and in the savings account.
The CBR However was moved from 10 percent to 9.5 percent bringing the legislated rate for savings calculated at 70 percent of CBR down to 6.65 percent.
Under the deal concluded on Tuesday, 75 percent of the Sh76 billion Chase Bank deposits, bank branches, and staff have been moved to SBM.
Depositors will get immediate access to Sh14.25 billion once CBK once the date these deposits will be available, and the details under which the customer accounts will be managed, are announced.
A further Sh14.25 billion will be put in a savings account attracting a rate of 6.65 percent while Sh28.5 billion will be placed in a term deposit at the rate of 6.65 percent received over three years.
“The remainder of each transferred deposit will be held on fixed term deposit with SBM Kenya, such deposits (together with the interest thereon) to mature, as to one-third of such remainder, on the first, second and third anniversaries of the transfer respectively,” CBK said yesterday.
Non-moratorium depositors will also be transferred and will continue to have full unrestricted access to their funds.