Safaricom’s Ziidi Money Market Fund (MMF) has quickly gained traction, attracting over 450,000 customers and managing more than KES 2.85 billion in assets within its first month.
The minimum investment on Ziidi is KES 100, making it a viable option for low- and middle-income earners, with no upper limit for investments. However, the daily M-PESA transaction limit of KES 500,000 and the per-transaction limit of KES 250,000 apply, ensuring that all transactions remain within manageable thresholds.
Therefore , how much can you earn if you decide to invest half a million shillings in the investment fund?
Investment Process
To opt in, access Ziidi through the M-PESA app or dial the USSD code *334#. For the short code, opt for the option 5 which is Financial Services. Choose Ziidi, after which a prompt will ask to accept or reject the terms and conditions.
After accepting, you will receive an SMS with a link redirecting you to the USSD or to the M-PESA app to start your investment.
Interest Calculation
To estimate potential returns, consider the interest rate offered by the fund. Assuming Ziidi MMF offers an annual interest rate of 13.65 %, then:
Investment amount: Kshs 500,000
Annual interest rate: 13.65%
Interest earned per year: Kshs 500,000 x 0.1365= Kshs 68,250
If compounded monthly, your earnings would look like this:
Monthly interest: Kshs 5,687.50
In one year, your Kshs 500,000 investment would grow to Kshs 568,250.
Ziidi MMF has several benefits over other MMFs including:
1. Accessibility
With M-PESA integration, you can easily invest, track, and withdraw your money through the app or by dialing *334#. Additionally, all transactions between your M-PESA wallet and the Ziidi Fund are completely free of charge.
2. Competitive Returns
Ziidi offers appealing daily interest rates, making it a compelling alternative to traditional savings accounts that typically generate low returns
3. Flexibility
With M-PESA, users can easily deposit and withdraw funds, providing instant access to their investments in real time.
Also, users can invest as little as Kshs 100, and withdraw as little as Kshs 10.
4. Security
Protected by the user’s M-PESA PIN, Ziidi guarantees secure investments, with every transaction requiring PIN verification for added safety.
It is important to note that Ziidi is an individual investment fund and does not accommodate groups or businesses. Additionally, income earned from Ziidi is subject to a 15% withholding tax, as with all interest earning platforms in the country.
