The fund allows customers to invest from as low as KES 100 and earn competitive daily interest on their savings. This comprehensive guide provides detailed information about the charges, interest rates, timelines, and available options for investors.
Transaction Charges and Fees
Deposit and Withdrawal Charges
Zero Transaction Costs
Ziidi MMF is zero-rated, meaning you won't be charged any transaction fees for deposits or withdrawals. All transactions to and from your M-Pesa wallet to the Ziidi MMF Fund are completely free.
This is a significant advantage as it allows investors to move funds in and out of the investment without incurring costs, making it accessible for frequent transactions.
Management Fees
The fund management fee is 2% per annum. However, it's important to note that the return indicated to investors is a net return, meaning the management fee has already been deducted from the displayed interest rate.
Maintenance Fees
Ziidi MMF has no maintenance fees. This eliminates the burden of recurring charges that could erode your investment returns over time.
Fund Locking Charges
No fees are charged for locking and unlocking of invested funds. The fund locking feature is available to help investors maintain financial discipline without additional costs.
Interest Rates and Returns
How Interest is Calculated
Ziidi MMF is a Money Market Fund where the funds are invested in government securities such as Treasury bills as well as interest-earning accounts. The rate therefore changes daily.
Daily Interest Computation
The interest earned on your investments is computed daily and an indicated rate is given to you on the M-Pesa App and on *334#. This provides investors with transparency and real-time visibility of their earnings.
Interest Earning Timeline
When Your Money Starts Working
Your funds start working for you just 24 hours after depositing. This means that once you deposit money into your Ziidi MMF account, you begin earning interest the following day.
Daily Accrual
The interest earned is accrued to the Ziidi wallet daily, allowing the investor's money to grow and therefore generate more value through compounding.
Taxation on Interest
Like all other interest-earning investments, the Ziidi MMF income is subject to 15% withholding tax. This tax is deducted at source before the interest is credited to your account, in compliance with Kenya Revenue Authority regulations.
Tracking Your Interest
You can view and track your investment and earnings on the Ziidi mini app homepage under Investment performance or by dialing *334#. This feature ensures that investors have full visibility of their investment growth at any time.
Investment Limits and Options
Minimum and Maximum Investment Amounts
Minimum Investment
- The minimum amount to invest is KES 100
- The minimum amount you can withdraw is KES 10
Maximum Investment
- There is no maximum investment limit
- However, the daily M-Pesa transaction limit of KES 500,000 per day and KES 250,000 per transaction are applicable
