Access, UBA, Zenith, Other Banks Raise Interest Rates on Savings Accounts
- Nigerian banks are raising savings interest rates following Central Bank adjustments to encourage deposits
- Inflation remains a significant concern, outpacing savings yields and eroding real returns for households
- Experts warn that improved savings rates haven't alleviated financial pressures amid rising living costs
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian banks, including major lenders like Access Bank, UBA, and Zenith Bank, have begun raising interest rates on savings accounts following recent monetary policy adjustments by the Central Bank of Nigeria (CBN).
The move is aimed at encouraging deposits and aligning with the higher benchmark Monetary Policy Rate (MPR).
Source: Twitter
Several deposit money banks have notified customers of revised rates, with savings accounts now offering between 7 and 8 per cent annually.
Wema Bank, for instance, announced an updated rate of 7.95 per cent per year across multiple account categories, including salary savings, non-individual accounts, and its SMART Save products.
The bank also introduced conditions to qualify for interest earnings, such as maintaining a positive balance and limiting withdrawals to four or fewer transactions monthly. Customers exceeding this limit risk losing interest for that period.
What the new rates mean for savers
On paper, the increase appears attractive. A customer saving ₦100,000 annually at a 7.95 per cent rate could earn about ₦7,950 before tax, assuming the rate remains stable.
However, many Nigerians remain unimpressed. While nominal returns have improved slightly, the real value of these earnings is still being eroded by inflation, leaving savers with little to celebrate.
Inflation still outpaces returns
Recent data from the National Bureau of Statistics (NBS) shows that Nigeria’s headline inflation stood at 15.06 per cent year-on-year in February 2026.
Although this represents a slight decline from January, price pressures remain significantly higher than savings yields.
Even more concerning is the resurgence of monthly inflation, which rose by 2.01 per cent, signalling renewed short-term cost increases.
Food inflation, a key driver of household expenses, climbed sharply to 12.12 per cent year-on-year, with a 4.69 per cent monthly surge.
This means that while savings accounts are yielding around 8 per cent, the cost of living is rising nearly twice as fast, resulting in negative real returns for most households.
Experts say households still under pressure
Financial analysts warn that the gap between savings rates and inflation continues to strain household finances. David Adonri, Vice Chairman at Highcap Securities, noted that rising costs of food, transportation, and energy are limiting disposable income.
According to him, many Nigerians are struggling to balance basic expenses, making it difficult to set aside funds for savings, regardless of improved interest rates.
Similarly, Okezie, National Chairman of the Progressive Shareholders Association of Nigeria, emphasised that higher savings rates alone cannot offset the broader economic challenges.
He explained that while banks’ efforts may attract deposits, the real value of those deposits is declining due to persistent inflation.
He also pointed out that restrictions like limiting withdrawals may not be practical for households already facing rising living costs.
Outlook: Relief depends on inflation decline
The CBN’s tightening measures are designed to stabilise prices over time, but the impact on consumers is gradual. While lending and deposit rates typically rise after policy adjustments, the benefits to savers often lag behind the broader economic reality.
Source: Getty Images
For now, the outlook remains cautious. Improvements in purchasing power will largely depend on sustained declines in inflation and stronger income growth.
Until then, higher savings rates may offer some relief on paper, but for many Nigerians, the pressure of rising prices continues to outweigh the gains.
Banks release new lending rates
Legit.ng previously reported that the Central Bank of Nigeria (CBN) has released the latest lending rates following its decision to cut the interest rate by 50 basis points to 26.50% from 27%.
The apex bank announced the new MPR rates during its 304th Monetary Policy Committee (MPC) meeting held in Abuja recently.
The CBN governor, Olayemi Cardoso, said all members of the MPC unanimously agreed upon the decision.
Source: Legit.ng
