19 Nigerian Banks Adjust Savings Rates to 8.18% Following MPR Hike
In a recent adjustment triggered by the Central Bank of Nigeria’s (CBN) monetary policy, 19 deposit money banks have raised their savings interest rates to 8.18%. This move aligns with the CBN’s directive to implement a minimum rate equivalent to 30% of the Monetary Policy Rate (MPR).
Why the Change?
The CBN increased the MPR in September 2024 by 50 basis points to 27.25% to address inflation. Consequently, 30% of the new MPR translates to the 8.18% savings interest rate that banks are now obligated to pay depositors.
Who Are the Top Players?
The 19 banks complying with the new savings rate include:
• Access Bank
• Citi Bank
• Fidelity Bank
• First Bank of Nigeria
• UBA, Zenith Bank, and many more.
However, five banks fall short of the mandated rate, offering lower percentages:
• FCMB: 1.15%
• Globus Bank: 1.40%
• Stanbic IBTC: 2.73%
• GTBank and SunTrust Bank: 8%
Key Conditions for Savers
Savings deposit rates are pegged to the MPR only if customers make no more than four withdrawals per month, noted Ayodele Akinwunmi, a corporate banking expert.
Why Higher Rates Matter
An analyst emphasized that in an inflationary environment, higher savings rates help preserve the value of money, providing a buffer against declining purchasing power.
Global Perspective
While Nigeria raises rates to curb inflation, other countries like the UK, Canada, and the EU have begun cutting rates as inflation cools, highlighting contrasting economic priorities worldwide.
What It Means for You
For Nigerian savers, this increase offers a chance to earn more on deposits, encouraging savings and fostering financial growth.
In a recent adjustment triggered by the Central Bank of Nigeria’s (CBN) monetary policy, 19 deposit money banks have raised their savings interest rates to 8.18%. This move aligns with the CBN’s directive to implement a minimum rate equivalent to 30% of the Monetary Policy Rate (MPR).
Why the Change?
The CBN increased the MPR in September 2024 by 50 basis points to 27.25% to address inflation. Consequently, 30% of the new MPR translates to the 8.18% savings interest rate that banks are now obligated to pay depositors.
Who Are the Top Players?
The 19 banks complying with the new savings rate include:
• Access Bank
• Citi Bank
• Fidelity Bank
• First Bank of Nigeria
• UBA, Zenith Bank, and many more.
However, five banks fall short of the mandated rate, offering lower percentages:
• FCMB: 1.15%
• Globus Bank: 1.40%
• Stanbic IBTC: 2.73%
• GTBank and SunTrust Bank: 8%
Key Conditions for Savers
Savings deposit rates are pegged to the MPR only if customers make no more than four withdrawals per month, noted Ayodele Akinwunmi, a corporate banking expert.
Why Higher Rates Matter
An analyst emphasized that in an inflationary environment, higher savings rates help preserve the value of money, providing a buffer against declining purchasing power.
Global Perspective
While Nigeria raises rates to curb inflation, other countries like the UK, Canada, and the EU have begun cutting rates as inflation cools, highlighting contrasting economic priorities worldwide.
What It Means for You
For Nigerian savers, this increase offers a chance to earn more on deposits, encouraging savings and fostering financial growth.