The CBN raises the interest rate on savings deposits from 1.4% to 4.2%. – TechEconomy.ng
Banks in Nigeria are now required by the Central Bank of Nigeria (CBN) to pay savings deposit accounts an interest rate of at least 4.2%, up from the previous rate of 1.4 %.
This was stated in a circular titled “Review of Interest Rate on Savings Deposits”, dated August 15, 2022 and signed by Haruna B. Mustafa, Director of Banking Supervision.
The rise in savings interest rates, which will take effect on August 1, according to apex bank, was taken in light of the full return to normal after taking into account current macroeconomic conditions.
The circular reads: “It should be recalled that as part of efforts to mitigate the impact of the COVID-19 pandemic, the Central Bank of Nigeria has reduced the minimum interest rates payable on deposits of savings in local currency from 30% to 10% of the Monetary Policy Rate (MPR).
This was intended to stimulate growth in the economy as a whole following the economic downturn occasioned by the pandemic. “
The apex bank noted that Nigeria has returned to economic normalcy, the bank said, “After the return to full normalcy and given the prevailing macroeconomic conditions, it became necessary to make an upward adjustment in the rate interest payable on savings deposits in local currency.”
“As a result, from 1 August 2022, the minimum negotiable interest rate on savings deposits in local currency will be 30% of the MPR. This supersedes our letter dated BSD/DIR/GEN/LAB/13/052 on the subject. September 1, 2020,” the CBN said.
The CBN circular reads as follows; “It should be recalled that as part of efforts to mitigate the impact of the COVID 19 pandemic, the Central Bank of Nigeria has reduced the minimum interest rates payable on local currency savings deposits by 30% at 10% of the monetary policy rate (MPR). ).
“This was intended to stimulate growth in the economy as a whole following the economic downturn occasioned by the pandemic.”