Categories: Economy

CBN Cuts Interest Rate On Savings Deposits To 1.25%

The Central Bank of Nigeria (CBN) has directed deposit money banks in Nigeria not to pay less than 1.25% in interest on savings deposit accounts.

According to a circular signed by the financial regulator’s Director of Banking Supervision, Bello Hassan, on Tuesday, the implementation will take effect on September 1, 2020.

The circular stated that the bank is satisfied with the recent declining trend in market rates in the banking sector following the implementation of policies aimed at stimulating credit flow to the real sector.

It added that the interest rate will be negotiable, subject to a minimum of 10% per annum of Monetary Policy Rate., which serves as the apex bank’s benchmark rate for lending in the financial services sector which is at 12.5%

“In line with recent market developments, the ‘Bank has reviewed the minimum interest payable on savings deposits as provided in its Guide to Charges by Banks’ consequently reviewing rates to 10% of Monetary Policy Rates.

“Consequently, all deposit money banks are hereby informed that effective September 1, 2020 interest on local currency savings deposits shall be negotiable subject to a minimum of 10% per annum of Monetary Policy Rate,” the circular read in part.

Recent Posts

Top 10 Trending Stories In Nigeria Today

Nigeria is a country where the news cycle never slows down, with fresh developments unfolding…

2 hours ago

LG Polls: Court Restrains KANSIEC From Conducting Election

Justice Simon Amobeda, a Federal High Court sitting in Kano, on Tuesday, restrained the Kano…

2 hours ago

Senate Investigates Drug Allegations Against Senator Ashiru

Nigeria's Senate has constituted a six-member ad hoc committee headed by Senator Enyinnaya Abaribe to…

3 hours ago

Players Injured As Kano Pillars U-19 Team Bus Crashes

Many players of the Kano Pillars FC U-19 team sustained injuries in a road accident…

4 hours ago

Nigeria-Libya Row: Appropriate Action Will Be Taken – CAF

The Confederation of African Football (CAF), on Tuesday, said it has commenced a proper investigation…

4 hours ago

Only Two Tiers Of Govt Exist In A True Federation – Aregbesola

Former Osun State Governor and immediate past Minister of Interior, Ogbeni Rauf Aregbesola, has called…

4 hours ago

This website uses cookies.