The Central Bank of Nigeria increased the minimum interest rate on savings accounts in Naira from 0.15 percent to 4.2 percent. The start date for the new order is August 1, 2022.
The rate has been increased from 10% to 30% of the Monetary Policy Rate, according to a bank circular dated August 15, 2022, and signed by Haruna Mustafa, director of the banking supervisory department (MPR).
The bank increased the benchmark interest rate in July, from 13% to 14%, to curb inflation; this marked the second consecutive increase in the rate by the central bank in 2022.
The Central Bank of Nigeria cut the minimum interest rate payable on local currency savings accounts from 30% to 10% of the Monetary Policy Rate to mitigate the impact of the COVID-19 epidemic (MPR). The Central Bank of Nigeria (CBN) explained that this move was made to "stimulate growth in the greater economy" after an economic slowdown brought on by the epidemic.
Given the current macroeconomic conditions and the restoration of normalcy, it is time to increase the interest paid on local currency savings accounts.
The minimum interest rate that may be negotiated for local currency savings accounts is 30% of the MPR as of August 1, 2022.
Due to this change, many Nigerians may be forced to abandon the many fintech companies that provide higher returns on savings than traditional financial institutions.
Eight out of twenty-seven banks offered savings interest rates of 1.40 percent or more, according to the most recent deposit and lending rates in the banking industry published on the CBN website.
Banking institutions include Access Bank, Citibank, Ecobank, Globus, Polaris, Stanbic IBTC, Sterling Bank, and Zenith Bank. Others gave interest rates from 0.88% to 4.20%.