Determined to retain its existing customers and as well attract new ones, Fidelity Bank has commenced implementation of the minimum payment of 30 percent interest on local currency savings deposits.
According to a memo to its customers last week, the bank informed its customers that interests on savings and other deposits that attracted 1.4 percent per annum before have been reviewed upwards to 4.2 percent pee annum.
Similarly, interests on other funds treasury products like Fidelity personal savings scheme and Fidelity sweet account have been reviewed from 0. 98 to 2.94 percent.
“Please be informed that our savings interest rate has been reviewed upward in line with the CBN’s directive that the negotiable minimum interest rate payable on local currency savings deposit shall be 30 percent of the MPR, effective
August 1, 2022., “ the bank said in a message to its customers.
While most of the banks are yet to comply, investigations by metrobusinessnews.com (MBN) showed that few banks in the industry were paying above one percent before CBN’s directive, with majority offering less than one percent minimum.
CBN had last week raised the minimum interest rate on Naira savings deposits from 0.15 percent to 4.2 per cent.The new directive took effect from August 1, 2022.
The bank in a circular dated August 15, 2022, and signed by Haruna Mustafa, director of the banking supervision department, said the rate has been revised from 10 per cent to 30 per cent of the Monetary Policy Rate (MPR).
In a bid to address inflation, the bank in July raised the benchmark interest rate to 14 per cent from 13 per cent, making it the second consecutive time the central bank would raise the benchmark rate in 2022.
“It will be recalled that as part of the efforts to ameliorate the impact of the COVID-19 pandemic, the Central Bank of Nigeria reduced the minimum interest rates payable on local currency savings deposits from 30% to 10% of the Monetary Policy Rate (MPR).
This was aimed at stimulating growth in the larger economy following the economic-slowdown occasioned by the pandemic,” the CBN said.
“Following the return to full normalcy and considering the prevailing macroeconomic conditions, it has become necessary to effect an upward adjustment of the interest rate payable on local currency savings deposits.
“Accordingly, effective August 1, 2022, the negotiable minimum interest rate on local currency savings deposits shall be 30% of MPR. This supersedes our letter dated BSD/DIR/GEN/LAB/13/052 on the subject. September 1, 2020, “ CBN’s statement added.
