Mobolaji Omotola

There could never be a better time for Nigerians who are savings account holders with a substantial amount of money in their accounts in the commercial banks to invest such money in a lucrative investment.

Why You Should Invest Now

The Central Bank of Nigeria (CBN) has slashed the interest rate payable on monies held in savings accounts to around 1.25 per cent per annum from the previous benchmark of around 3.75 per annum.

The rate cute is effective from September 1, 2020, according to a circular to all banks from the regulator.

With the development, analysts expect a mass exodus of funds idling in savings deposit accounts into money market instruments, which currently gives returns of around 3-5 per cent per annum, as well as the real sector.

“This is a game-changer. This makes keeping monies in savings deposit less attractive to depositors,” a senior banker said.

Analysts say the move will allow smaller banks to grow faster and also make it easier for banks to cut lending rates to borrowers.

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