Godmother:
What bank has the best savings interest rate and what is the rate?

CC

Adesiji77

Godmother:
What bank has the best savings interest rate and what is the rate?

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

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

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.

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

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

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.

Adesiji77:




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

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.

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

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

Godmother:


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

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.

Adesiji77:




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

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.

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

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.

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.

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.

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

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

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

miqos02:
mmm