Absa launches youth savings account

DAR ES SALAAM: Absa Bank Tanzania has introduced the Youth Savings Account, a groundbreaking financial product designed specifically for young Tanzanians aged 18 to 30.

The new account requires an initial deposit of 1,000/- and offers monthly interest rates on deposits ranging from four to six percent, depending on the amount deposited and the duration.

This initiative comes in response to the 2022 census by the National Bureau of Statistics (NBS), which revealed that 34.5 percent of Tanzania’s population, or 21 million people, are young. Recognizing the potential of this demographic, the bank aims to empower the youth and promote a culture of savings.

Speaking to reporters in Dar es Salaam on Wednesday, Head of Retail Banking at Absa Bank Tanzania, Ms Ndabu Swere, , expressed her excitement about the new product and highlighted its importance.

“We are introducing an innovative product targeting young individuals aged 18 to 30, a demographic that represents a significant portion of Tanzania’s population,” said Swere.

She noted that while the bank currently offers Child Savings Accounts for those under 18, managed by parents or guardians, there has been a lack of tailored products for young adults.

“This gap has often forced young adults to seek financial services elsewhere, making it challenging for the bank to attract them back once they complete their education or start their businesses.

“Our new Youth Savings Account addresses this issue, aligning with our commitment to ESG principles and supporting the youth of Tanzania. At Absa Bank Tanzania, we are driven by our purpose: Empowering Africa tomorrow, together, one story at a time. We take a bold step forward with the introduction of the Absa Youth Savings Account, designed to foster a culture of savings among our youth,” she said.

The product offers numerous benefits, including free unlimited deposits through Absa agents, ATMs, and branch channels, a free debit card upon account opening, free mobile and internet banking access, zero monthly maintenance fees, 24/7 account access via Absa’s digital platforms, participation in youth-oriented programs and activities such as career fairs, youth events, and seminars, and access to the Absa Twin Rewards cashback proposition.

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Ms Swere encouraged young Tanzanians to take advantage of this opportunity and open an Absa Youth Savings Account. This account is designed to help youth build a habit of saving and benefit from the unique advantages offered by the bank.

Absa’s Head of Marketing and Corporate Affairs, Aron Luhanga, emphasized the growth of the bank’s brand in relation to the introduction of new products in the local market.

“This is more than a slogan; it’s a commitment to walk alongside you, supporting you in your life’s journey to help you write the best stories. We understand your past, envision your future, and pledge to support you every step of the way,” he said.