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Posted by Felix Okoli on Saturday March 16, 2013 at 10:50:17:

Interest rates on a savings account are part of what makes saving money in a bank rather than at home more reasonable. If you save your money in a bank account, it normally earns some form of benefits depending on how long the money is saved in that bank.

Those direct benefits or returns which your money earns for you while it sits in a bank account doing nothing is what we refer to as interest.

The interest rate on funds saved in a savings account in Nigeria tend to vary from bank to bank but they are somehow influenced by the Central bank of Nigeria.

The CBN normally publishes a report of interest rates being offered by several banks in Nigeria and based on what I've seen, it ranges from 0.1% to about 3%. Some banks are know to pay really high rates while others tend to pay low rates but they do pay something.

The best way to know how much interest your bank pays you or can pay for saving money with them is by calling at customer service or viewing your monthly banking statements. You can also get to know this independently by looking into CBN newspaper publications on interest rates by banks.

As at the report I wrote in December 2012, Skye bank offered one of the lowest rates at 0.04% while Standard chartered offered the highest rate at 3.5%.

How are interests on savings calculated?
The amount of interest your savings would earn to you are normally based on the following variables:

C: Capital: Amount in savings account
R: Interest rate: Based on bank e.g. 3%
T: Time: 1 year

So let's say your savings totals up to N100,000 and you have saved it for a month at a rate of 3%, then your interest payable(I) after 1 month in a year would be:

I = (C*R*1)/12

= (100,000 * 0.03 * 1)/12

= N250

This means that you can earn N250 per month from N100,000 invested passively in a savings account and for a year, that would be N3000.

Want to earn more on your savings? I suggest you go for a Fixed deposit account then.

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Comments:

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Re: Interest rate on savings account in Nigeria Reply by MARY on Friday September 13, 2013 at 15:24:54:

BUT WHY THE SKYEBANK SUDENLY INCREASED THE INT RATE ON LOAN EVEN ON EXISTENCE BORROWER. WHILE THE CBN REDUCES THE RATE




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Comments:
Re: Interest rate on savings account in Nigeria Reply by onyia amechi kenneth on Wednesday July 23, 2014 at 15:38:30:

i wish to know the bank with the highest interest rate on fixed deposit allongside their duration for the fixed deposite account.pls send reply to my inbox.

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Re: Interest rate on savings account in Nigeria Reply by OKE FELIX TEJIRI on Sunday March 1, 2015 at 9:13:15:

please sir, i wish to know the fixed account interest rate of the following banks; ECOBANK, GTB, FIDELITY BANK, FIRSTBANK AND DIAMOND BANK

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