Banks to pay customers 1.25 percent minimum interest on savings deposit: CBN

Isola Moses | ConsumerConnect
The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) in the country to henceforth pay 10% of its Monetary Policy Rate (MPR) as the minimum interest rate on savings deposit.

Bello Hassan, Director of Banking Supervision of the CBN has announced the peg in a directive to banks.

ConsumerConnect reports the MPR is the benchmark interest rate of the CBN, which is currently 12.5 percent.

By implication, consumers of banking products and services will now get 1.25 percent as the minimum interest rate on their savings deposit.

The Bankers’ Bank said: “All deposit money banks are hereby informed that effective September 1, 2020, interest on local currency savings deposit shall be negotiated subject to a minimum of 10 percent of Monetary Policy Rate (MPR).”