In line with the recent market developments, the Central Bank of Nigeria has reviewed the minimum interest payable on savings deposits as provided in its guide to charges by banks.
Specifically, the apex bank on September 1, 2020 directed all deposit money banks that interest on local currency savings deposits would be negotiable subject to a minimum of 10 per cent per annum of the Monetary Policy Rate.
This takes savings interest rate from about 3.9 per cent to 1.25 per cent, with the MPR currently at 12.5 per cent.
However, in an August 31 letter to all banks signed by Bello Hassan, the CBN Director of Banking Supervision, the apex bank said it noted with satisfaction the recent declining trend in market rates in the banking sector, following the implementation of policies aimed among others at, stimulating credit flow to the real sector.
The move is set to continue the financial repression unleashed by the CBN as savers will earn lesser interests on their savings with banks likely being the major beneficiaries.
