The minimum interest rate on savings deposits in banks has been reviewed by the Central Bank of Nigeria (CBN) to at least 1.25 per cent per annum.
Savings deposit rates are default rates banks pay customers for keeping their money in the banks.
This was contained in a circular dated August 31, 2020, and signed by Bello Hassan, Director of Banking Supervision.
Previously, banks pay less than 5% annual interest on savings deposits. CBN websites put the rate at about 3%.
“The CBN has noted with satisfaction the recent declining trend in market rates in the banking sector following the implantation of policies aimed among others, at stimulating credit low to the real sector.
“Consequently, all deposit money banks are hereby informed that effective September 1, 2020 interest on local currency savings deposits shall be negotiable subject to a minimum of 10% per annum of Monetary Policy Rate,” the circular stated.