By David Mwanje
Housing Finance Bank has launched the HFB Trust Savings Account, a product that pays interest on deposits while offering selected insurance benefits to customers.
The account has been introduced at a time when many Ugandans are looking for ways to save and earn better returns, with some turning to unit trusts and other investment products outside traditional bank savings accounts.
The Trust Savings Account offers annual interest rates ranging from seven percent to 10 percent, depending on the amount saved. Interest is calculated daily, credited monthly and compounded.
The account also comes with life insurance of up to four times the customer’s account balance, capped at UGX 25 million. It also includes travel insurance for up to five trips, funeral support and hospitalisation benefits.
Speaking at the launch, Housing Finance Bank Head of Products Christopher Ssebugenyi said customers now expect more from savings products.
He said the account was designed for people who want to save consistently while also having some protection against emergencies that may affect them or their families.
The account is open to Ugandans aged 18 years and above, with a minimum opening balance of UGX 50,000. Customers can deposit money through the bank’s branches, mobile banking and internet banking platforms.
The launch comes as banks face growing competition from unit trusts and collective investment schemes, which have gained popularity among Ugandans seeking higher returns. Unlike conventional savings accounts, however, such investment products carry risks that depend on market performance.
Financial sector players say more Ugandans, especially young workers, entrepreneurs and families, are paying closer attention to saving as living costs rise and disposable incomes remain tight.
Housing Finance Bank says the Trust Savings Account is part of its retail banking business and is available at all its branches and digital banking channels.
