'Savings' is term that is used in different contexts and therefore it is interpreted differently depending on the context to which it is being applied. Strydom (2007) defines saving as a macro environment concept that refers to income that is not consumed in a particular period. The business directory (www.businessdictionary.com) defines savings as the portion of disposable income not spent on the consumption of consumer goods, but accumulated or invested directly in capital equipment, by paying off a home mortgage or indirectly through the purchase of security. The other form of savings is through putting aside income by saving it in a bank or financial services provider, investing in a pension plan or in other forms of income generating investments. The macroeconomic and business definitions do not differ materially, as the ultimate meaning of savings implies deferred consumption of income.
The economic challenges experienced in Zimbabwe since 2008 has severely put a dent on the savings culture that prevailed in the 1980s and 1990s. Most families are in consumptive mode due to the low income levels and high cost of living. However, in such an environment, it is still prudent to encourage a savings culture regardless of the level of incomes or how much can be saved. Transaction based accounts have dominated the product menus on offer by the banking institutions.
CBZ Bank Limited, the country's leading bank by deposits and assets, has come on board to champion the restoration of a savings culture in Zimbabwe. In line with the strategy to offer innovative products to clients, CBZ Bank introduced a new High Interest earning Account, the CashPlus Savings Account in July 2012. This new product offers competitive tiered interest rates and free banking services to clients. The product is in five categories, namely:
The following features are peculiar to each account:
CASHPLUS - INDIVIDUAL
This is aimed at individuals who want to save towards something, it could be a wedding, a holiday or purchasing an asset. To encourage disciplined saving, no withdraws are allowed for the first 90 days. Thereafter, a client is free to withdraw part of or the full amount. If client chooses the former option the next withdrawal will be effected after another 90 Days, and the cycle continues in that order.
The Cash Plus – Business Savings Account is a high returns account for business clients who are keen to save towards working capital or capital expenditure requirements of their business. The client will save 40% or more with the Bank providing 60% in the form of a business loan. The minimum loan amount is $5,000. No withdrawals will be permitted for 6 months (180 days).
The CashPlus – Housing Account is a high interest earning savings account which allows clients to save funds towards purchase of houses or housing stands as well as construction. The client will save half or more towards the purchase price or cost of construction, with the Bank matching the customer's contribution in the form of a mortgage loan. No withdrawals are permitted for a period of one year (365 days).
Access to mortgage finance is commensurate with client's requirements. Currently the tenure ranges from 2 to 10 years.
The CashPlus Teen Account is a savings account for teenagers to save funds for their daily needs and encourage them to grow up with a saving culture. The product encompasses the following features:
The CashPlus Junior Account is a savings account for children under the age of 12 which is operated by the Parent/Guardian. Regular deposits are to be made into the account by the parent/guardian among other features detailed hereunder: