The Central Bank Of Nigeria, CBN has Reduced Minimum Interest Rates for transactions (deposits) on savings accounts from the previous benchmark.
According to the circular reportedly issued to all banks on August 31st, the per annum interests paid on all savings account has been reduced to 1.25% against the former rate of 3.75%.
The new policy is said to stimulate the economy and will be effective from today September 1, 2020.
For more clarification, the new development means when you save money to your savings account, you will at the end of the year receive at least 1.25% as interest, Naija News understands.
Nairametrics reports that the move will allow smaller banks to grow faster and also make it easier for banks to cut lending rates to borrowers.
Parts of the circular read as follows; “In line with recent market developments, the ‘Bank has reviewed the minimum interest payable on savings deposits as provided in its Guide to Charges by Banks’ consequently reviewing rates to 10% of Monetary Policy Rates.”
“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.”