Economic experts in Malawi say people keeping their money with the country’s banks are losing out because what they get as interest is far below the country’s inflation rate.

The economic experts have since advised banks to increase their savings rates to within or above the inflation rate which currently stands at 7.5 per cent, according to The Daily Times.

The newspaper’s snap survey indicated that all the banks maintained their rates at below the inflation rate with First Merchant Bank (FMB) providing the highest rate at 6 per cent and Standard Bank providing the lowest rate at 2.5 per cent.

Economists Association of Malawi (ECAMA), Malawi Economic Justice Network (MEJN), Consumers’ Association of Malawi (CAMA) and the banking industry all agreed that customers were losing out.

“In the present state, putting money in the bank is just good for safety and not for preserving the value of the money,” the paper quoted MEJN economic analyst Milward Tobias as saying.

CAMA Executive Director John Kapito is quoted as saying his association was collecting data on the deposit rates adjustments effected by the banks to mount a strong challenge against the malpractice.

“Once we finish collecting the data, the banks will hear from us,” the paper quotes Kapito as saying.

“We want all consumers to be aware of how the banks are making a killing from their money.”

Sanje Msiska