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What Bank Pays The Best Interest Rate For Savings Account In Nigeria? - Business - Nairaland

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What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Godmother(f): 6:44pm On Jan 25, 2017
What bank has the best savings interest rate and what is the rate?

CC

Adesiji77
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by makelove2m(m): 7:24pm On Jan 25, 2017
Godmother:
What bank has the best savings interest rate and what is the rate?

CC

Adesiji77

No best , no better, worst interest rate with all bank, they are all been controlled by central bank stupid policies, ,........... I can borrow it from you with all necesary documentation if you want, and we settle on what interest rate you will want me per month, trust me, but first indicate interest, i will call you on phone

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Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by 7footre(m): 8:01pm On Jan 25, 2017
1st bank and ecobank try for mua .... but if you don't have immediate need for the money, you can try treasury bills.. it's safe and much better

5 Likes 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 9:29pm On Jan 25, 2017
Godmother:
What bank has the best savings interest rate and what is the rate?

I can authoritatively say that most banks (if not all) pay 4.2% per annum.

The reason for this is simple: The Central Bank of Nigeria (CBN), being the regulator of the banking industry, directed banks to pay a minimum of 30 per cent of the Monetary Policy Rate (MPR) as interest on savings accounts.

The MPR is an interest rate at which CBN lends to commercial banks. It is also the benchmark rate by which the apex bank determines interest rate.

Currently, MPR is 14%. 30% of 14%=4.2%

While the minimum is 4.2%, most banks pay just the minimum. This enables them to reduce their interest expense and make more profits cheesy

This is understandable; banks, like every profit-oriented business, wants to make as much profit as possible.

46 Likes 9 Shares

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Godmother(f): 9:37pm On Jan 25, 2017
makelove2m:


No best , no better, worst interest rate with all bank, they are all been controlled by central bank stupid policies, ,........... I can borrow it from you with all necesary documentation if you want, and we settle on what interest rate you will want me per month, trust me, but first indicate interest, i will call you on phone

Would have loved to try your option, but I'll be needing the money anytime and want it to be readily available.

1 Like

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Godmother(f): 9:38pm On Jan 25, 2017
7footre:
1st bank and ecobank try for mua .... but if you don't have immediate need for the money, you can try treasury bills.. it's safe and much better

I tried TBills two years ago with First Bank and was given 9.6% . Would have gone for it again but want the cash available.
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 9:41pm On Jan 25, 2017
Godmother:


I tried TBills two years ago with First Bank and was given 9.6% . Would have gone for it again but want the cash available.

If you have idle cash (N100K and above) that you can spare for up to 30 days but not more than 60 days, you can go for fixed deposit.

For 91 days and above, I will suggest TBills. Current rates are the best that you can get in recent times. Be right back with the last stop rates.

2 Likes 4 Shares

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Godmother(f): 9:42pm On Jan 25, 2017
Adesiji77:


I can authoritatively say that most banks (if not all) pay 4.2% per annum.

The reason for this is simple: The Central Bank of Nigeria (CBN), being the regulator of the banking industry, directed banks to pay a minimum of 30 per cent of the Monetary Policy Rate (MPR) as interest on savings accounts.

The MPR is an interest rate at which CBN lends to commercial banks. It is also the benchmark rate by which the apex bank determines interest rate.

Currently, MPR is 14%. 30% of 14%=4.2%

While the minimum is 4.2%, most banks pay just the minimum. This enables them to reduce their interest expense and make more profits cheesy

This is understandable; banks, like every profit-oriented business, wants to make as much profit as possible.


This explanation is so detailed, thanks. But mehn, these banks are terrible o; 4.2% per annum! It will favour me to put the money under my bed or dig a hole in the ground.

17 Likes 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 9:52pm On Jan 25, 2017
Godmother:


This explanation is so detailed, thanks. But mehn, these banks are terrible o; 4.2% per annum! It will favour me to put the money under my bed or dig a hole in the ground.

cheesy grin

The bolded reminds me of the Biblical expression "Lay not up for yourselves treasures upon the earth, where moth and rust consume..." cheesy

On a serious note, your money is better off in a bank.

You can get up to 5% on fixed deposit (depending on the bank). Even on a normal savings account, you will only forfeit your accrued interest if your withdrawals exceed 3 times in a month.

5 Likes

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Godmother(f): 10:02pm On Jan 25, 2017
Adesiji77:


cheesy grin

The bolded reminds me of the Biblical expression "Lay not up for yourselves treasures upon the earth, where moth and rust consume..." cheesy

On a serious note, your money is better off in a bank.

You can get up to 5% on fixed deposit (depending on the bank). Even on a normal savings account, you will only forfeit your accrued interest if your withdrawals exceed 3 times in a month.


Hmmm. Is it really better at the bank with the interest rate being peanuts? Its well

1 Like

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Bennycollins: 10:08pm On Jan 25, 2017
Adesiji77:


I can authoritatively say that most banks (if not all) pay 4.2% per annum.

The reason for this is simple: The Central Bank of Nigeria (CBN), being the regulator of the banking industry, directed banks to pay a minimum of 30 per cent of the Monetary Policy Rate (MPR) as interest on savings accounts.

The MPR is an interest rate at which CBN lends to commercial banks. It is also the benchmark rate by which the apex bank determines interest rate.

Currently, MPR is 14%. 30% of 14%=4.2%.
You are well informed.


While the minimum is 4.2%, most banks pay just the minimum. This enables them to reduce their interest expense and make more profits cheesy

This is understandable; banks, like every profit-oriented business, wants to make as much profit as possible.

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 10:18pm On Jan 25, 2017
Godmother:


Hmmm. Is it really better at the bank with the interest rate being peanuts? Its well

I actually meant it is better compared to digging a hole in the ground grin

If you have an ongoing business that gives you a rate of return that is more than 4.2% per annum, why not!

If not, consider a savings account or a fixed deposit of 5% or more...

1 Like 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by 7footre(m): 10:25pm On Jan 25, 2017
Godmother:


I tried TBills two years ago with First Bank and was given 9.6% . Would have gone for it again but want the cash available.
Oh that's two years ago... rates have improved much now. if you want the cash readily available, you can try any of the two banks above

1 Like 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by xana101: 10:31pm On Jan 25, 2017
Use d money play mmm. Or GHW and thank me later. Naija bank na ponzi scheme

5 Likes 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by DokitaDave(m): 10:31pm On Jan 25, 2017
There was a day I sat down and surfed the internet to compare the interest rate of banks in Nigeria on fixed deposits, from the feedback I got then, Sterling bank seemed to be the highest with about 6.2% or thereabout.

I could only come to a conclusion that this is one of the reasons money doubling ponzi schemes have thrived gloriously in the country. Some people prefer to risk their money for a higher out-of-reality yield rate than these silly bank rates.

7 Likes 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by uboma(m): 10:36pm On Jan 25, 2017
Adesiji77:


cheesy grin

The bolded reminds me of the Biblical expression "Lay not up for yourselves treasures upon the earth, where moth and rust consume..." cheesy

On a serious note, your money is better off in a bank.

You can get up to 5% on fixed deposit (depending on the bank). Even on a normal savings account, you will only forfeit your accrued interest if your withdrawals exceed 3 times in a month.



Considering the amount and tenor, Banks may be willing to pay more than 5% interest on fixed deposit.

If the amount is huge and she is willing to invest same for a longer period of time, banks will pay more than 5%.

And yes, her money is better off being in the vaults of a bank than elsewhere.

grin
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Godmother(f): 10:37pm On Jan 25, 2017
7footre:

Oh that's two years ago... rates have improved much now. if you want the cash readily available, you can try any of the two banks above

If the rates have gotten better that will be good o and one can now consider it sef.
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by uboma(m): 10:39pm On Jan 25, 2017
DokitaDave:
There was a day I sat down and surfed the internet to compare the interest rate of banks in Nigeria on fixed deposits, from the feedback I got then, Sterling bank seemed to be the highest with about 6.2% or thereabout.

I could only come to a conclusion that this is one of the reasons money doubling ponzi schemes have thrived gloriously in the country. Some people prefer to risk their money for a higher out-of-reality yield rate than these silly bank rates.



the low interest rate is no excuse for anyone to gamble away his means of livelihood.

People who invest in any quick rich scheme is just being plain greedy and will get his/her fingers burnt.
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by DokitaDave(m): 10:47pm On Jan 25, 2017
uboma:




the low interest rate is no excuse for anyone to gamble away his means of livelihood.

People who invest in any quick rich scheme is just being plain greedy and will get his/her fingers burnt.
Anyways... You may be right.
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 10:53pm On Jan 25, 2017
uboma:



Considering the amount and tenor, Banks may be willing to pay more than 5% interest on fixed deposit.

If the amount is huge and she is willing to invest same for a longer period of time, banks will pay more than 5%.

And yes, her money is better off being in the vaults of a bank than elsewhere.

grin

cheesy

Yes, fixed deposit rates are a function of amount and tenor...
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by chukzyfcbb: 11:08pm On Jan 25, 2017
Adesiji77:


I can authoritatively say that most banks (if not all) pay 4.2% per annum.

The reason for this is simple: The Central Bank of Nigeria (CBN), being the regulator of the banking industry, directed banks to pay a minimum of 30 per cent of the Monetary Policy Rate (MPR) as interest on savings accounts.

The MPR is an interest rate at which CBN lends to commercial banks. It is also the benchmark rate by which the apex bank determines interest rate.

Currently, MPR is 14%. 30% of 14%=4.2%

While the minimum is 4.2%, most banks pay just the minimum. This enables them to reduce their interest expense and make more profits cheesy

This is understandable; banks, like every profit-oriented business, wants to make as much profit as possible.

you have spoken very well about the MPR and all but I stand to be corrected. No bank in Nigeria to the best of my knowledge pays 4.2% as savings interest. its within The range of 3.5%-3.8% p.a. I came out of a bank yesterday and I was surprised to see it still hasn't entered the 4% range. so pls take correction

2 Likes 1 Share

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 11:36pm On Jan 25, 2017
chukzyfcbb:

you have spoken very well about the MPR and all but I stand to be corrected. No bank in Nigeria to the best of my knowledge pays 4.2% as savings interest. its within The range of 3.5%-3.8% p.a. I came out of a bank yesterday and I was surprised to see it still hasn't entered the 4% range. so pls take correction

Bros, you may have to edit the "no bank in Nigeria" part.

I can tell you authoritatively that 4.2% pa is the official rates for Zenith Bank, Stanbic IBTC Bank, Skye Bank, Union Bank, Diamond Bank and other banks that I can't readily mention right now. A few banks that I know even pay higher for customised savings products.

It could be that the displayed rate guide in the banking hall of that particular bank/branch has not been updated. If any bank pays you less than 4.2% pa, report them to CBN! angry

4 Likes 2 Shares

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Adesiji77: 12:50pm On Jan 26, 2017
For the avoidance of doubt, let's confirm from others on the forum: What interest rate does your bank pay on savings account?

You can simply ask your bank/account officer....

cc: dominique, lalasticlala
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by miqos02(m): 1:37pm On Jan 26, 2017
mmm
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by emmanuel596(m): 1:38pm On Jan 26, 2017
grin
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by sexyjuly(f): 1:38pm On Jan 26, 2017
miqos02:
mmm
correct guy grin

2 Likes

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by leofab(f): 1:38pm On Jan 26, 2017
None
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by geostrata(m): 1:38pm On Jan 26, 2017
cheesy
Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by Nobody: 1:38pm On Jan 26, 2017
You mean the 1.5% they pay after deducting ridiculous sums from your account ?

i.e. they deduct 600naira for nothing and tell you later they credit you 25naira as profit for saving.. is this the one you're asking about?

5 Likes

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by idupaul: 1:40pm On Jan 26, 2017
None I tell you , interest rate is not a factor to consider when opening a savings account in Nigeria, the primary factor to consider is distance; Op just look for the bank with a branch closest to your house because it will help you when you need to rush there and shout when deductions become unbearable.

10 Likes

Re: What Bank Pays The Best Interest Rate For Savings Account In Nigeria? by chiefolododo(m): 1:40pm On Jan 26, 2017
First Bank ?

2 Likes 1 Share

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