The Central Bank of Nigeria (CBN) has directed deposit money banks to henceforth pay 10% of it’s Monetary Policy Rate (MPR) as minimum interest rate on savings deposit.
The apex regulator issued the directive in a recent circular to banks signed by its Director, Banking Supervision, Bello Hassan.
The MPR is the benchmark interest rate of the CBN and it is presently 12.5 per cent.
With this development, bank customers will now get 1.25 per cent as minimum interest rate on their savings deposit.
The circular read: “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 10percent of Monetary Policy Rate (MPR).”