Mshwari Lock Savings Account 2022: Interest Rates & Withdrawal

Let’s face it; it’s never easy to keep money in your MPESA wallet and expect to save towards an important project. The chances are that an ’emergency’ will pop up, and you’ll spend it, and that’s where a Mshwari Lock Savings Account comes in.

With a Mshwari locks savings plan, you can lock your money for several months and get to protect yourself from the temptation of spending it on something unnecessary. The best part is that it earns interest for the savings period.

You can save for one month to 6 months, and there is no maximum amount to any lock saving account and you can save as much as possible, but the daily MPESA limit applies.

Money held in a lock saving account earns a high-interest rate. So you can save for that dream sofa, car, or jewelry you have always wished to own.

But what if you get an emergency along the way?

Rest easy as you can access your saved funds before maturity. However, the only setback is that your money won’t earn the lock saving account interest but the common Mshwari interest, which is lower.

Furthermore, for your money to start earning interest, you must have saved at least Ksh 1,000.

But given that you can save as many times as you want, reaching this amount will be easy. But just a reminder, going this route requires maximum discipline to achieve your target.

This guide will discuss everything you need to know about the Mshwari lock savings account, including how to open an account and the interests applicable.

Let’s get started: 

Benefits of Saving with M Shwari

How Does Mshwari Lock Savings Account Work?

The Mshwari lock savings plan is an initiative between MPESA and NCBA that helps Mshwari and M PESA users save money for a particular reason over a given time.

You can lock your money for 1 – 6 months and choose your Mshwari Lock Savings Account target amount. Upon maturity, you can comfortably withdraw the total saved amount plus the total interest gained.

Requirements for Opening a Mshwari Lock Savings Account

You do not have to tick many boxes to open a Mshwari lock savings account.

All you need is the following: 

  • A registered Safaricom line that must have been in use for the past six months
  • An active MPESA account
  • Be a Mshwari customer

What if you are new and have not joined Mshwari?

In this case, you need to first activate your Mshwari account by following these steps:

  • Go to the MPESA menu on your phone
  • Click on ‘my account’ and then update the MPESA menu

Once your MPESA menu is active, follow the following steps to activate your Mshwari account:

  • Open the MPESA menu on your phone
  • Choose loans and savings
  • Choose Mshwari
  • Press ok to activate the account
  • Accept Mshwari terms and conditions, and your Mshwari account will be active
How Does Mshwari Lock Savings Account Work

How to Open Lock Savings Account on Mshwari

Now that you know something about saving with a Mshwari lock savings account, it’s time to open your account and start saving.

Below are the steps to follow:

  • Go to the MPESA menu and select loans and savings
  • Opt for a lock savings account
  • Choose the ‘open an account’ option
  • Select to save (deposit) from either Mshwari or MPESA
  • Enter your target amount
  • Choose the period most convenient for you (between 1 – 12 months)
  • Enter the amount you want to save, and that’s it

After the above, wait to receive a message confirming a successful Mshwari lock savings account setup.  

How to Deposit Money to Mshwari Lock Saving Account

Once you have your Mshwari lock savings account, it’s time to save for your mega project. Below are the simple steps to use to deposit funds to your Mshwari lock savings account:

  • Go to the MPESA menu on your mobile phone
  • Press on ‘loans and savings’
  • Select Mshwari
  • Choose ‘lock-savings account.’
  • Pick to save either from Mshwari or MPESA
  • Enter the amount you want to save
  • Input your MPESA pin, and that’s it

You will then wait to receive an SMS indicating a successful transaction.

Does Mshwari Earn Interest? (Mshwari Interest Rate On Savings)

One good thing about saving your funds in a Mshwari lock savings account is that you receive a higher interest rate than someone holding a regular Mshwari account.

Even better, the interest rate is constant throughout the saving period. Your money earns interest daily, but it’s paid monthly and usually paid out during maturity.

However, if you withdraw money from your lock savings account before maturity, the interest rate lowers to that of a regular Mshwari account.

To explain the specific interest figures, below is a table illustrating the lock saving account interest rate:

Savings Amount Interest Rate (Per Year)
Ksh 1 – Ksh 20,0003%
Ksh 20,001 – Ksh 50,0005%
Ksh 50,001 and above6%

Maximum Amount Mshwari Can Hold

There is no maximum amount for the Mshwari lock savings account. However, the daily MPESA limit of Ksh 140,000 applies.

Maximum Amount Mshwari Can Hold

How to withdraw from Mshwari Lock Savings Account

Once your funds have reached maturity, you will receive an SMS notification of the total amount saved plus the overall interest earned.

Then, the total amount will move to your Mshwari account, where you can withdraw it by following the steps below:

  • Go to the MPESA menu on your phone
  • Select Mshwari
  • Then select withdraw from Mshwari
  • Enter the amount you want to withdraw
  • Input your MPESA pin and then press OK

After that, wait to receive a confirmation message indicating that the savings are now in your MPESA account. You can then visit the MPESA agent near you to withdraw from MPESA.

Mshwari Lock Savings Account Period

The customer determines the duration for withdrawing from a lock savings account. However, you can save your money for a minimum period of 1 month and a maximum of 6 months.

Mshwari Lock Savings Account Limit

The good news is that there is no limit when saving your money on the Mshwari lock saving account. However, the only caveat is that you cannot exceed the MPESA daily limit of Ksh 140,000.

Mshwari Lock Savings Account Target Amount

Benefits of Saving with M Shwari

Opening and saving with a Mshwari lock savings account come with ample benefits that include:

  • You can earn a high-interest rate than what you get when saving with Mshwari
  • There isn’t a minimum saving, but a daily MPESA limit of Ksh 140,000 applies
  • You can save as many times as possible (even daily)
  • There is no charge for transferring from Mshwari or MPESA to your lock savings account
  • You can save as low as Ksh 500
  • You can lock money flexibly from 1 to 6 months, depending on your goal
  • The lock saving interest rate is equal throughout the saving period

Loan Application and Mshwari CRB Clearance

If you are an active MPESA user who regularly saves on your Mshwari account, you can be eligible for a Mshwari loan.

Once you request the loan, Mshwari gives you 30 days to repay. If you pay back in time or before the due date, you will likely get a Mshwari loan limit increase.

The best part is that Mshwari loans do not attract any interest rates. However, a 7.5% loan facilitation fee is payable once for any loans.

However, if you don’t honor this agreement and fail to pay your loans on time, Mshwari does you a favor of extending the repayment period by 30 days. The loan will incur an additional 7.5% charge of the total outstanding balance.

If the period elapses and you have not yet paid the loan in full, Mshwari forwards your details to the Credit Reference Bureau (CRB) for listing.

So, if you want to take future loans with Mshwari, you need to pay the loan in full and get a Mshwari CRB clearance form.

But why undergo all this stress while you can pay the loan back and take another one considering that they do not charge interest on their loans? It doesn’t make sense!

And let me clarify something, as of writing this post, there is no verified Mshwari Paybill Number that you can use to pay your loans.

You have to go to the MPESA menu, loans and savings, select Mshwari and then pay the loan. Then enter the amount and your MPESA pin to pay your loan.

Does Mshwari Earn Interest

People Also Ask

1. How Long Does It Take to Withdraw from Mshwari Lock Saving Account? 

It may take longer than you expect, especially if you want to settle a given emergency. If you withdraw money from the lock saving account before the due date, you will wait for 48 hours (2 days) to deposit the funds into your Mshwari account.

However, if you wait till maturity, you will receive an SMS where your funds will move to a Mshwari account for withdrawal which will take just a few minutes.

2. Can I Withdraw Money from Mshwari Lock Saving Account Before Maturity?

Of course! You can successfully withdraw money from your locked savings account before maturity if you face an emergency like a hospital bill. However, you will have to wait for 48 hours to access the funds.

You should also note that the interest rate changes from lock savings account interest to a regular Mshwari account interest.

3. How Can I Know If My Mshwari Lock Savings Has Matured?

Once your lock savings reach maturity, you will receive a notification informing you of the total saved plus the interest gained. The savings move to your Mshwari account for easier withdrawal when that happens.

4. Can I Check My Mshwari Lock Savings Account Balance?

Yes, you can check your Mshwari lock savings balance anytime by following these steps:

  • Go to your phone MPESA menu
  • Select loans and savings
  • Choose Mshwari
  • Select lock saving account
  • Choose the option’ check balance’ and input your MPESA pin

After the steps, you will receive an SMS notification with your lock savings account balance.

Also Read:

Closing Remarks!

Above is everything you need to start saving using the Mshwari Lock Savings Account. Overall, the plan allows your money to gain interest payable during maturity. All it requires is individual discipline to achieve your saving goal, and you’ve 1-6 months to do it.