This is based on a skunkworks discussion thread and as many answers are welcomed. A growing number of young Kenyans are now making money online from blogs and websites; They often earn money in and receive foreign cheques for $50, $100 or $200 (e.g. from Google Adsense) but have different experiences when they try and encash them. I use Co-op Bank, but the cost of Kshs. 1,000 (losing ~13%) to get funds one month later is something I’m sure another bank can improve on
My questions to the netpreneurs earning from advertising and other online sources is what did you do with your last adsense cheques? Where do you bank them? What kind of bank account do you have? How much does it cost to clear such a cheque and how long before funds are available? and finaly What do you as a young digital entrepreneur /internet like about your bank?
Results (after a week)
Concept says Family Bank - Kshs. 650
I say Co-op Bank - - Kshs 1,000
and KCB Customer Service the only of three dozen banks to reply to e-mail says minimum Ksh.800 maximum Ksh.4800 plus postage charge of Ksh.300. (so Kshs 1,100)
15 comments:
1000/- is cheap... I was charged 4,000/- for a Ugandan chq!!!
I deposited a cheque for 104$ from Google on November with Family Bank and payment was on 2nd January this year. Apart from CBA who require you have a $ account all other accounts denominated in K'sh take a month. Family Bank charges 650 for foreign cheques.
The best aspect with a small bank is the level of customer service accorded. You get to know the staff on a personal basis and you feel valued.Family bank is also one of the banks disbursing the youth fund and its a worth a try.
- See if Google has EFT
- Ask google to hold back the payment till it reaches a certain amount
- Call google and see if they can arrange to have such payments done through Kenyan Office
- Get someone in US to cash it then EFT
- Get someone from US to open a foreign account on yor behalf and send you an ATM card. Then have Google send the cheques (or wire the cash) to your pal in US who deposits. Withdraw using ATM. Chap chap. Some healthy doses of trust may be needed.
I was doing ecommerce (software) as far back as 2000 - from Kenya. KCB used to charge me 2sok to receive incoming SWIFT (irrespective of amount).
Check with them if EFT is an option...
Anon 6:34, i would make the following modifications (Google does have EFT).
Friend can open an account n the states and send the card back home. The account can be accessed online, and Google account could be setup to send the funds to the account via EFT. Friend would not need to bother with depositing checks. Person at home can manage statements online.
Banks.. kwisha maneno. Next question?
:-)
Banks,
As someone who sends money often in money, folks here should recognize that it may be 1000ksh but this adds up, as the wire transactions will be a few.
Secondly, opening a US account, you will still have to pay monthly service fee for that account and this won't be cost effective plus the ATM fees for withdrawing funds international. If it is a savings account, there is no servicing fee but you money will earn interest and the US govt will demand you pay them taxes on any interest earned whether it is a personal account or a business account.
About google holding your checks, email them and find out...but most likely not, becoz they run the payroll at a set time.
I have always been critical of the bank's services fees in Kenya, infact I mentioned this mid last year on your blog, and you shut my criticism down...you said the amounts were insignificant and inline blah...( see, i don't what to say, I told you so, but I did)..the chickens have come to roast. Banks in Kenya are robbing my people(poor and middle class) through excessive bank fees, and they wonder why majority of Kenyans don't bank...it pisses me off, especially when compared to banking fees and services in California, and they banks here still make mega profits..greedy bankers. The more they should fight for Kenyans and they development...gosh, don't get me started on the interest charges for monies borrowed.
Talking of banks... how do you think KCB will be affected after the recent Triton debacle?
KCB has always sold at a discount to other banks... no wonder...
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Hi Bankelele,
You can open a US$ account with either Ecobank and DTB, services are fabolous and their charges are reasonable
Interesting. I'm a few dollars short of my first Google cheque and this is most timely. Thanks.
Happy new year Banks.
getting payment is really a challenge! its sad that it has to be that way,personally i get them to pay into a paypal account for my relative who then sends me the cash! but it need not be that way!Kenyan Banks shape up-remember those days when you could not open an account without a minimum balance of 10 k, provide utility bills, etc....tumetoka mbali thanks to Equity Bank
Banks:
Open an account w/ Bank of America - i believe they have an account that they don't charge or if they do it might be about 6 bucks for monthly service. You can then withdraw your money at a Barclays ATM for free.
Anyone with an idea of a cheap way of doing things other way round-sending $ to a foreign account from a local one? Banks, please bear with me for asking on yours.
Hey, I finally decided to write a comment on your blog. I just wanted to say good job. I really enjoy reading your posts.
Nonsense
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