CBN Directs Banks To Pay 30% Interest On Savings Accounts
The Central Bank of Nigeria has directed commercial banks to pay a minimum of 30 per cent per annum to all savings account holders effective from May 1, 2017.
This was contained in a new guideline to all banks, other financial institutions and mobile payments operators issued by the director, financial policy and regulation department of the apex bank, Mr. Kevin Amugo.
According to Amugo, the new guide line will enhance transparency and reduce ambiguity in loan transactions, and help to incorporate the concerns of both operators and users of financial services in the country.
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The reads in parts: “Banks, other financial institution and mobile payments operations are required to present any other product, service and/or charge not covered by guide to Central Bank of Nigeria for prior written approval. Guide to charge by Banks and other financial institution in Nigeria is hereby issued and take effect from May 1,2017. It replaces the guide to bank charges that cane into effect on April 1, 2017.”
He also noted that the 30 per cent interest rate is not applicable if a customer makes more than four withdrawals in a month.
On current account in credit balance, the CBN said interest rate on deposits was negotiable and maintained N65 not-on-us withdrawal from other bank’s ATM after the third withdrawal within the same month.
