One of the major functions of commercial banks is mobilisation of funds for investments. And such interest paid on the deposit is used as incentive to encourage people to saving their money in the bank.
Deposits money banks accept deposits in three categories of accounts: savings account, current account, and fixed deposit account. Interests are only paid to savings account, and fixed deposit account.
Savings Account
A savings account is a deposit account held by individuals at a bank or other financial institutions that yields interest. As the name implies, it’s used to keep money you want available for short-term needs.
Banks pay interest to such account as the give out the savings as loan to borrowers. A savings account holder is not expected to call for his money on a regular, although the advent of Fintech has made it easy depositors to have unfiltered access to the funds in their savings accounts. And for this, may people no longer receive interest on their accounts. Being able to access deposited funds at will has made savings account better option than fixed deposit
Following the Central Bank of Nigeria's raising minimum interest rate to 24.75% in March 2024, it's expected that many commercial banks will as well raise interest rates they offer to savings account holders.
Presently, Standard Charted Bank offers the highest interest rate 5.24% to savings account in Nigeria, while FCMB offers the lowest interest of 1.15%.
Nigerian Banks Offering Highest Interest Rates to Savings Account
Standard Chartered Bank: 5.24%
Access Bank: 4.95%
Citibank: 4.95%
EcoBank: 4.95%
Fidelity Bank: 4.95%
Heritage Bank: 4.95%
Polaris Bank: 4.95%
Premium Trust Bank: 4.95%
Sterling Bank: 4.95%
Titan Trust Bank: 4.95%
Union Bank: 4.95%
Unity Bank: 4.95%
Wema Bank: 4.95%
Zenith Bank: 4.95%
Guarantee Trust Bank: 4.93%
Top 10 Nigerian Banks that Pay Highest Interest to Special Savings Accounts
Access Bank
Access Bank operates special of savings account called High Interest Deposit Account, designed to help individuals save to meet special projects or emergency funding.
HIDA which offers tiered interest rates allows you to maximize interest on your savings. You earn interest daily and it's payable monthly. Which means the more save, the more you earn higher interest
The tiered interest rates are as follows:
Less than N100,000 at 7.425% per annum
N100,000 to 4,999,999 at 7.75% per annum
N5,000,000 to 49,999,999 at 8.0% per annum
N50,000,000 to 99,999,999 at 8.5 per annum
N100,000,000 to 249,999,999 at 9.5% per annum
N250,000,000 and above at 10.0% per annum
Visit Access Bank webpage to read more
EcoBank
EcoBank has a multi-currency savings account called Premier Savings Account, tailored to enable you save your money in different currencies, and get annual interest of 9%.
GTBank
GT Target is a high interest yielding savings account that financial discipline while allowing you earn premium interest on your savings. The account enables save towards a special target and offers an 8% interest per annum.
Stanbic IBTC
Stanbic IBTC’s Max Yield offers 8% interest rate per annum on savings. The account allows you to partial access to withdraw money for emergencies. The minimum opening balance is N10,000
Unity Bank
Target Savings Account offers by Unity Bank enables businesses and individuals save towards a business project, and earns 8% interest per annum on their savings.
Globus Bank
Globus Bank has Fixed and Tenured Deposits Account that offers 7% per annum interest rate on savings.
Zenith Bank
Zenith banks operates different kinds of savings accounts tailored to meet different people's needs. All this forms of savings accounts offer high interest rates. Zenith Bank offer 5.25% interest rate on Individual Savings Account, 5.25% on EazySave Classic Account, 5.25% EazySave Premium Account, 5% to Aspire Account, 6.5% to Timeline Account, 7% to Save4Me. Visit Zenith Bank webpage to see read more to know the one suitable for you.
Requirements to Open Savings Account
Requirements, in terms of documentation, to open savings account in Nigeria are almost the same for all the banks. What differs is using the minimum account opening balance. Some banks require higher opening balance than the others. While some others operate zero opening balance.
The required information to open a savings account in Nigerian banks include:
- Passport photograph
- Means of identification: Any ID issued by the government such as Nigerian passport, Driver's license, National Identity Card, Voter's Card
- National Identity Number (NIN)
- Bank Verification Number (BVN): You will be required to provide your BVN, where you don't yet, you will have to do it in the bank.
- Means of Address Verification: A proof that you reside in the address you provided. Means of Address Verification include utilities bill such as NEPA bill, house rent receipt etc.