CBN Reduces Interest Rate on Savings to a minimum of 1.25%
Central Bank of Nigeria (CBN) instructs Banks to peg the minimum interest rate on savings deposit at 10% of Monetary Policy Rate (MPR) per annum.
The CBN has reviewed the minimum interest rate on local currency savings deposit to 10% of the MPR (1.25% per annum), effective immediately.
This implies a decline in interest rate, compared to the previous rate (3.9%, being 30% of the MPR), rendering savings in commercial banks less attractive. We think that this policy reflects the CBN’s focus on driving economic growth, by increasing credit flow to the real sector.
The MPR is the benchmark rate that guides banks’ lending rates, and the interest rate on bank deposits. This policy would ease the pressure of funding costs for banks, as it lowers the cost they incur for holding deposits. Bank depositors are, however, left with the shorter end of the stick as return on savings further thins out.
We encourage clients to take advantage of our products that offer higher interest rates between 5.5 % to 9.7%.
We offer investments in:
- Naira and dollar (Fixed-Income backed) fixed deposits (Interests rates between 6% — 9.67%).
- Fixed-income investments such as Treasury bills
- FGN Bonds, Corporate Bonds, and Eurobonds
- Regular savings at a higher interest rate than the bank (6% upwards)
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