More Money For Nigerians As CBN Orders Banks To Pay Higher Interest On Savings

With this new development, many Nigerians may now have to ditch various fintech firms that reward savings with better interest than the banks.

The interest rate on naira savings has been increased by the Central Bank of Nigeria.
 
CBN raised the minimum interest rate on Naira savings deposits from 0.15 percent to 4.2 per cent, meaning more money for Nigerians who save with banks.
 
The new directive took effect from August 1, 2022.
 
The bank in a circular dated August 15, 2022, and signed by Haruna Mustafa, director of the banking supervision department, said the rate has been revised from 10 per cent to 30 per cent of the Monetary Policy Rate (MPR).
 
In a bid to address inflation, the bank in July raised the benchmark interest rate to 14 per cent from 13 per cent, making it the second consecutive time the central bank would raise the benchmark rate in 2022.

“It will be recalled that as part of the efforts to ameliorate the impact of the COVID-19 pandemic, the Central Bank of Nigeria reduced the minimum interest rates payable on local currency savings deposits from 30% to 10% of the Monetary Policy Rate (MPR). This was aimed at stimulating growth in the larger economy following the economic-slowdown occasioned by the pandemic,” the CBN said.
 
“Following the return to full normalcy and considering the prevailing macroeconomic conditions, it has become necessary to effect an upward adjustment of the interest rate payable on local currency savings deposits.

“Accordingly, effective August 1, 2022, the negotiable minimum interest rate on local currency savings deposits shall be 30% of MPR. This supersedes our letter dated BSD/DIR/GEN/LAB/13/052 on the subject. September 1, 2020.”
 
With this new development, many Nigerians may now have to ditch various fintech firms that reward savings with better interest than the banks.
 
According to the latest deposit and lending rates in the banking industry published on the CBN website, eight out of 27 banks paid 1.40 per cent savings interest rates.
 
The banks are Access Bank, Citibank, Ecobank, Globus, Polaris, Stanbic IBTC, Sterling Bank, and Zenith Bank.
 
Others offered between 0.88 per cent to 4.20 percent.

Posted: at 18-08-2022 01:47 PM (1 year ago) | Gistmaniac

Na so, till tomorrow, banks will continue to trade with your money with slim interest.

Posted: at 18-08-2022 02:14 PM (1 year ago) | Hero

Hmm, I just found out about this news. maybe I should think about opening a deposit in this bank? I'm just one of those people who likes to put their money at interest so as not to lose it due to inflation. banks in many countries have fairly low interest rates, especially in Europe. a friend of mine from navibanker advises me to prefer foreign banks for deposits because they offer higher interest rates and
in case of problems in your country, you can still withdraw money from your accounts in other countries. so I thought maybe I should still contact a Nigerian bank in order to put my money at interest? what do you guys think?

Posted: at 1-11-2022 02:18 PM (1 year ago) | Newbie