Central Bank drops savings account interest rate to 1.25%

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

The Central Bank of Nigeria has requested all Deposit Money Banks to survey loan fees on investment accounts to at least 10 per cent of the Monetary Policy Rate effective from September 1, 2020.

This would add up to 1.25 per cent at the current MPR of 12.5 per cent.

Central Bank of Nigeria unveiled this in around with the number, BSD/DIR/GEN/LAB/13/051 to all banks which was gotten on Monday. The round was named ‘Re: The interest rate on reserve funds store’.

At the last Monetary Policy Committee meeting in July, the pinnacle bank had held the MPR at 12.5 per cent.

The Central Bank of Nigeria’s letter to the banks read:

“The Central Bank of Nigeria has noted with fulfilment declining pattern in market rates in the financial segment following the usage of strategies pointed among others, at animating credit stream to the genuine segment.

- Advertisement -

“In accordance with late market improvements, the bank has explored the base premium payable on investment funds stores as given in its manual for charges by banks, other money related and non-bank monetary establishments gave in December.

“Thusly, all store cash banks are therefore educated that successful September 1, 2020, enthusiasm on nearby money investment funds stores will be debatable dependent upon at least 10 per cent for every annum of Monetary Policy Rate.”

In a previous round number FPR/DIR/GEN/CIR/07/042 named, Re: Charges to all banks, other budgetary and non-bank money related foundations,” gave in December 20, 2019, the CBN inspected bank accuses to adjust of market improvements.

Area 1 on enthusiasm on stores on investment accounts specified, “Least of 30 per cent of MPR p.a (Not payable if a client makes multiple withdrawals in a month).”

IMPLICATION

- Advertisement -

When you keep money in your savings deposit accounts you will be paid at least 1.25% per annum by banks. When you consider that inflation rate is 12.8%, then this is almost like paying banks to keep the money for you.

Central Bank drops savings account interest rate to 1.25%
AB9NGK Nigerian Central Bank, Abuja, Nigeria. Image shot 2007. Exact date unknown.

HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR

Top 25 most valuable aerospace and defence brands could lose over $22bn of brand value from COVID-19

Read Also:  Understanding How Interest Rates Work. Whether It's A Loan Or An Investment.

Aerospace and defence sector heavily impacted by COVID-19 pandemic, brands could lose up to 20% of brand value, equating to a US$22.8 billion loss cumulatively

- Advertisement -

Ikeja Electric’s bilateral power attains first-year milestone as customers score service high

Ikeja Electric Plc (IE), Nigeria’s largest Electricity Distribution Company, is celebrating the first year anniversary of its Willing Buyer, Willing Seller initiative dubbed Bilateral Power by customers. The company’s Bilateral Power service promises customers a minimum of 20 hours of power supply and improved service in exchange for cost-reflective tariffs.

Nigeria Rugby Union signs kit sponsorship deal with BLK Sports

British Apparel Company BLK Sport and The Nigeria Rugby Football Federation (NRFF) have signed an exclusive long-term kit sponsorship/partnership deal aligning with the Company’s global strategy.

Apple buys another company

Apple reportedly bought VR startup Spaces, the tech giant’s eighth disclosed acquisition of the year. We discuss Apple’s moves in the VR space — including a patent for reducing motion sickness while working virtually in a vehicle.

IITA invests in development and implementation of seed yam certification system in Nigeria

IITA renovated and equipped the diagnostic laboratory of the National Agricultural Seed Council (NASC) at their headquarter in Sheda, Abuja, with equipment worth $100,000 for seed quality control and Seed Tracker e-certification system. A PCR for DNA amplification and other laboratory equipment will allow technicians of the seed regulatory agency to conduct diagnostics and seed quality testing in line with the amended existing standards for seed yam.

Read Also:  Saudi Arabia: Non-Oil Business Activity Moderates Sharply At The Outset Of The Year

Efe Omoregbe, Bada Akintunde-Johnson, Ayeni Adekunle, others confirmed to speak at MTN’s business of the art series

In line with its continuous commitment to youth development in Nigeria, MTN Foundation, the CSR arm of Nigeria’s leading ICT company, MTN Nigeria, has engaged leading minds in the Nigerian entertainment and media industry for this year’s edition of MTN’s Business of the Art Series.

Aruba Research: Network as A Service Adoption to Accelerate by 38% Within the Next Two Years as Businesses Adapt to COVID-19

74% of organizations reported moderate to significant impact to their employees due to the pandemic

- Advertisement -
Central Bank drops savings account interest rate to 1.25% - Brand SpurCentral Bank drops savings account interest rate to 1.25% - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Central Bank drops savings account interest rate to 1.25% - Brand SpurCentral Bank drops savings account interest rate to 1.25% - Brand Spur

Latest News

Demand for Second Passport Surges by 50 percent amid Covid-19 restrictions

National lockdowns, closed borders and travel restrictions have helped drive up enquiries for second passports, citizenships and overseas residencies...

A Tale of two markets – Capital Market Review November 2020

The Nigerian capital market witnessed a historic month on two fronts buoyed by increased system liquidity in the past month. Daily OBB and ONN...

Zedcrest Wins Diversified Financial Services Group Award for the Second Consecutive Year

...as Zedvance Emerges 2020 Best Automated Loan Origination and Processing Company Lagos, Nigeria – 30 November 2020: New-age financial solutions powerhouse, Zedcrest Group has again won...

iText Software is a Digital Signing Partner of Government Technology Agency of Singapore (GOVTECH)’s National Digital Identity (NDI) Program

GHENT, BELGIUM - Media OutReach - 2 December 2020 - From 5 November 2020, SingPass users can use the new "Sign with SingPass" feature to electronically sign contracts, agreements and...

POND’S Presents Skin Advisor Live on Shopee to Address Consumers’ Skincare Woes

JAKARTA, INDONESIA - Media OutReach - 2 December 2020 - It's no secret that the pandemic situation has brought many changes to our lives. Continued working from home,...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Central Bank drops savings account interest rate to 1.25% - Brand SpurCentral Bank drops savings account interest rate to 1.25% - Brand Spur