Ethiopian banks offer several account types. Choosing the right one depends on your needs—saving, transacting, or holding foreign currency.
Savings Account
- Purpose: Personal savings; earn interest on your balance
- Minimum deposit: Often 100–500 birr
- Interest: Paid periodically (monthly or quarterly); rate varies by bank
- Withdrawals: Usually unlimited; some banks limit free withdrawals per month
- Best for: Individuals, emergency funds, short-term savings
Current Account
- Purpose: Day-to-day transactions; check-writing, transfers, business operations
- Minimum balance: Often higher than savings; some banks require 1,000–5,000 birr
- Interest: Usually none or minimal
- Features: Checkbook, overdraft (if approved), debit card
- Best for: Businesses, freelancers, anyone needing frequent transactions
Fixed Deposit (Time Deposit)
- Purpose: Lock funds for a set period in exchange for higher interest
- Terms: 3 months, 6 months, 1 year, 2 years, etc.
- Interest: Higher than savings; longer terms typically mean better rates
- Early withdrawal: May incur penalty or reduced interest
- Best for: Goals with a known timeline (e.g., saving for a car, education)
Foreign Currency Account (USD, EUR)
- Purpose: Hold and transact in foreign currency
- Currencies: Primarily USD; some banks offer EUR
- Use: Import/export, diaspora, hedging against birr depreciation
- Requirements: May need to show source of funds (remittance, trade, etc.)
- Best for: Businesses dealing in FX, diaspora receiving remittances in USD
Diaspora Accounts
Some banks offer special accounts for Ethiopians living abroad:
- Features: May allow remote opening, foreign currency options, preferential rates
- Requirements: Passport, proof of residence abroad, reference from overseas bank
- Best for: Diaspora sending remittances or planning to invest in Ethiopia
Choosing an Account
| Need | Account Type |
|---|---|
| Save and earn interest | Savings or Fixed Deposit |
| Run a business | Current |
| Hold USD | Foreign Currency |
| Live abroad, send money home | Diaspora or Foreign Currency |
| Emergency fund | Savings |
Compare banks on Birr Value for exchange rates. For savings and fixed deposit rates, contact banks directly—rates change with NBE policy.