Savings account interest rate in Nigeria; fact on savings account in Nigeria

Savings account interest rate in Nigeria – there is no much explanation on this for adult except certain revelations that they don’t have right now but on our new generations, a lot need to be said on this.

This is why we would not waste your time on this at all rather we will be taking you to the sub topics of the above topic which are:

1. What is savings account in Nigeria?
2. Savings account interest rate in Nigeria
3. High interest savings account in Nigeria
4. Best savings account in Nigeria
5. Best bank to open savings account for child in Nigeria
6. Best bank in Nigeria for savings account
7. Conclusion.

What is savings account in Nigeria?

This is account services provided by Money deposit banks in Nigeria for single and joint individual persons alike in other for them to save their money and earn interests.

Savings account varies which is the reason we will be discussing this next:

Tier savings account in Nigeria

After enhanced due diligence was promoted by banks on KYC (know your customer) account opening in Nigeria took a different turn and mostly to accommodate all classes of people in Nigeria.

The above led to the concept of tier savings account in Nigeria.

We shall start with:

Tier 1 savings account:

This is a savings account type with full KYC documentation like and requirements.

The Requirements for opening a savings account – tier 1 status are:

1. 2 passport photograph
2. BVN not mandatory for opening but a must for operating the account
3. A utility bill that is not more that more than 3 months old for Premises or address verification.
4. A valid means of identification like Voter’s card, National ID card, Driver’s License or International Passport.

This account accepts all manner of transferred deposits but accept only a daily N500,000.00 maximum single of cumulative cash deposit.

Tier 2 savings account:

This is a savings account type without full KYC documentation. The documentation requirements are:

1. 2 passport photograph
2. BVN not mandatory for opening but a must for operating the account
3. A utility bill that is not more that more than 3 months old for Premises or address verification.
4. Any ID card can work on this account

This account cannot accept anything above N50,000 single cash deposit and it cannot have more than a cumulative balance of N500,000.00

This means that cash deposit can come in multiple tranches of below N50,000 but the sum total of money in that account can never be N500,000 at any time.

Tier 3 savings account:

This is a savings account type without full KYC documentation. The documentation requirements are:

1. 2 passport photograph
2. BVN not mandatory for opening but a must for operating the account
3. Utility Bill is not mandatory.
4. Any ID card can work on this account

This account cannot accept anything above N50,000 single cash deposit and it cannot have more than a cumulative balance of N300,000.00

This means that cash deposit can come in multiple tranches of below N50,000 but the sum total of money in that account can never be N300,000 at any time.

From the above you can now see the answers to these questions what is the maximum amount for savings account in Nigeria, maximum amount in a savings account in Nigeria; what is the maximum limit of savings account or how much is too much in savings?

Before we leave we have to address curiosity issues for those asking how much money should I keep in my savings account?

Statutorily there is no limit to what one can pay into his or her savings account but considering the fact that NDIC only repays maximum of N500,000.00 only for  all amounts above N500,000.00 in ones account should a bank liquidate, we advise that you deposit only a maximum of N500,000 in your savings account.

Savings account interest rate in Nigeria

According to CBN guide line, the interest on savings account is Minimum of 30% of MPR p.a. (not applicable if a customer makes more than 4 withdrawals in a month).

This interest on savings account in Nigeria also known as savings interest rate in Nigeriais translated to 3% per annum by commercial banks.

So let this guide you on what is obtainable in Nigeria banks.

High interest savings account in Nigeria

These are hybrid savings account designed to meet specific customer’s need at certain service cost.

They are also called high yield savings account in Nigeria because of the high interest rates.

They give interest rate that is more that what normal savings account gives. Sometimes they give up to 6% per annum.

They use things like non clearing cheque book, receive clearing cheques, uses ATM and has a minimum operating balance threshold.

Best savings account in Nigeria

There is nothing like best savings account in Nigeria. All savings account are designed to meet a certain purpose as wished by the customers.

The major question is does your savings account serve the purpose for which you opened it?

If it does not please close it and move to the one that does.

Best bank to open savings account for child in Nigeria

There are factors you must consider if you want to open a saving account in Nigeria.

They are the factors that determine what one can call the best bank in Nigeria for savings account. These factors are:

1. The cumulative threshold balance that can be allowed in such bank
2. The interest rate the account bears
3. The security of such account against hacks attempt
4. The service benefits attached to the account.

Conclusions:

Finally although we are not really in this to discuss what is the difference between current and savings account in Nigeria, which is better savings or current account or is money safer in a savings account we can still give you a little to quench your curiosity on the above questions.

1. Current account bears COT (commission on turnover) while savings account in Nigeria does not.
2. Current account uses cheques as a mandatory payment instrument across the counter while savings account uses withdrawal slip as a mandatory payment instrument across the counter.
3. Cheque books on saving account are only given on request and such requests are optional…not mandatory while that of a current account is a must.
4. Cheques issued on Current account goes for Clearing while Cheques issued on saving accounts are marked “Not valid for Clearing”
5. Current accounts are used for loan processing while savings accounts are not.

The above also answers the question of how do I know if my bank account is current or savings?