The banks in Nigeria are under so much pressure to keep their deposits as treasury bills rates keep rising. The interest rate on the normal saving account of the banks in Nigeria is at 1.25% per year although there are speculations of improvements in the future.
In this article, we are going to be looking at the highest paying banks when it comes to interest rate and although the Central Bank of Nigeria pegged the savings account deposit rates at 1.25% last year, some banks in Nigeria have introduced the high interest savings account where you could earn an interest of up to 3.5% per year on your savings.
So if you have extra money, we will be showing you some of the best banks where you can keep you money and earn high interest.
What Is A High Interest Savings Account?
This is a bank account where you can deposit money at a higher return than the average. It is a special deposit account that allows you to save for a project or keep away some funds for emergency days.
Features Of A High Interest Savings Account
Just like the name implies, this account offers you higher interest than the national average interest on your savings.
It must have a minimum opening balance
A high interest rate account must have a minimum opening balance and in Nigeria, it ranges from N5,000 to N10,000 depending on the bank.
You are not allowed to withdraw frequently or perform online transactions on the high interest savings account. The money you keep there is left for some time. If you withdraw money from the account, you would lose the interest that has been lined up for you.
The lock-in feature of the account disallows any form of withdrawal and so you cannot take emergency money from this account.
There are no charges
There are no charges for ATM and SMS on this account and this is why you are discouraged from taking cards on this account. It is purely a savings account and they expect that no withdrawals should be made.
Highest Paying Banks In Nigeria Based On Interest Rate
In this part of the article, we are going to be showing you the best banks with high interest rate for savings account in Nigeria.
So without further ado, let’s proceed…
Access Bank Plc
The Access Bank is one of the biggest and most reliable commercial banks in Nigeria and since its merger with Diamond Bank, it has expanded so well. It is one of the highest paying banks in Nigeria based on interest rate especially with its Access Bank HIDA Account.
This account is a product of the Defunct Diamond Bank that merged with Access Bank. The account was one of the three products that were taken from the defunct bank’s catalog and this was because of its high sellability features.
Features of HIDA account
- The minimum operating balance is N500 and you will be charged N150 if you allow your balance to go below the minimum balance. The minimum opening balance is N100,000.
- The interest on the account accrues daily and is paid monthly
- Convenience and flexibility of depositing cash, other banks cheques and dividend warrants at any of the Access Bank branch
- Penalty of N150 if your balance goes below N5,000
- Free withdrawals without forfeiture of credit interest payment on available balances
- No debit card for the account
The interest rates for various amounts are as follows:
|Deposit volume||Interest per annum|
|N100,000 – N4,999,999||1.50%|
|N5,000,000 – N99,999,999||2%|
|N100,000,000 – N249,999,999||2.50%|
|N250 million and above||2.15%|
United Bank of Africa (UBA)
This list will not be complete if UBA is not there and with its Target Account, it is one of the best banks to save your money.
The UBA Target account is a savings account specifically designed for customers that want to save towards a set goal or project. If you have a target you would want to meet, this is a wonderful account to open.
It offers you the convenience of savings and maximizing your investments while you have flexible access to your account anytime.
Features of the UBA Target Account
- The minimum opening balance is N50,000
- The minimum operating balance is N50,000
- Debit card available
- Withdrawal at the counter is free
- It allows fund transfer within and outside the bank
- It allows deposit of OBCs and Dividend Warrants
- You forfeit your interest if you withdraw more than four times in a month
The interest rates for various amounts are as follows:
|Deposit volume||Interest per annum|
|N100,000 – N999,999||1.10%|
|N1,000,000 – N4,999,999||1.15%|
|N5,000,000 – N999,999,999,999||1.20%|
Fidelity bank is one of the best banks when it comes to high interest rate on savings account especially with its High Yield Savings Account. A lot of market observers have said a lot about the banks High Yield Savings Account as one of the best in the market.
Fidelity bank currently offers a high interest rate for savings deposit accounts (target) of 3.5%. This makes fidelity bank one of the best banks to save money in Nigeria presently.
Features of the High Yield Savings Account (HYSA)
- Interest is paid monthly
- You earn an extra 1% bonus interest if your withdrawals are not made in six months
- An opening minimum balance of N5,000
- Cheque, cash and warrant deposits are allowed
- Access to internet banking services granted
Guaranty Trust Bank (GT Bank)
This is another high interest paying bank with its high yield savings account called GT-Target. It encourages you to save for a project or set goal.
It is not really available to new customers and it can only exist as a sub of your main account so it means that you must have had an account with GT Bank before you can open the GT-Target account. Although the main and sub-accounts can be opened in a day.
GT-Target is a high interest-bearing saving account that encourages you save for a specific target or goal. Whichever goal you have, with this account you will develop financial discipline through savings to achieve your financial goal.
Features of the GT-Target Account
- It is a non-transactional account and can be opened on the internet banking or at any GT Bank branch.
- It has a minimum mandatory standing order of N5,000
- Savings in this account has to be maintained consistently for at least six months to qualify for interest
- No cash withdrawal from the account but 3rd party transfer into the account can be done
- Interest rate of 1.15% per annum and additional 1% bonus interest to customers who maintain standing order deposit for 1 year
- Your GT-Target interest accrues daily and is paid every 6 months
First City Monument Bank (FCMB)
This bank earned a spot on the highest paying banks in Nigeria based on interest rate and this is because of the Premium Savings Account. With this account, you are allowed to withdraw up to three times without losing your accrued interest. This is one of the best savings accounts in Nigeria.
The account offers up to 1.15% interest once your deposit is N100,000 or above.
Features of the Premium Savings Account
- Minimum opening balance is N100,000
- Allow lodgment of clearing instruments including dividend warrants
- Can be operated as an individual or joint account
- It allows four free domestic bank draft or manager’s cheques per month
- It allows third party over-the-counter withdrawals
- If you withdraw more than four times in a month, you will forfeit your interest for that month
Stanbic IBTC Bank
The Stanbic IBTC is another wonderful bank that offers high interest rate for savings especially with its Max Yield Savings Account (MYSA) that was introduced in 2019.
For you to earn interest on this savings account, you must adhere to its terms and conditions.
Features of the Max Yield Savings Account (MYSA)
- Cash deposit and withdrawal at any Stanbic IBTC Personal Deposit Machine and ATM
- Access to all E-banking channels
- Bonus interest of 0.5% plus 10% of MPR per annum if daily balance is more than N100,000
- 1.15% interest for minimum daily balance less than N100,000 or more than one withdrawal in a month
- Make payments on the Web and through POS with your MasterCard
- Minimum opening balance of N10,000
Union Bank of Nigeria
The Union Bank of Nigeria made the list of highest paying banks in Nigeria based on interest rate with the Unionkorrect account. This account is a target savings account that has a tenor of 4 years and a minimum monthly savings of N5,000.
Unionkorrect account gives an interest of 1.5% and you stand a chance to win cash prices in the bi-annual draws.
The Unionkorrect account is in three categories:
- Dai Dai
This is a tenured savings account for low income earners. The account is only available in 11 states in the northern part of Nigeria.
This product allows you as a customer of Union Bank to save and also offers you the opportunity of winning a trip ticket to Qatar to enjoy the World Cup in 2022.
With this product, you would get higher interest rate on your savings and stand a chance to win cash prizes in the quarterly draws.
Zenith Bank Plc
This is one of the high performing banks in Nigeria and it has its high savings accounts that made it be among the list of high paying banks in Nigeria based on interest rate.
It has the Save4Me account, EazySave Classic Account and EazySave Premium Accounts.
They are all target savings accounts and offer high interest rates to customers.
The Save4Me account has an interest rate of 1.15%.
Features of the Save4Me Account
- No withdrawal allowed within the first three months
- Minimum of 3 months and maximum of 12 months
- It has a minimum deposit of N10,000
Sterling Bank Plc
This is another good bank when it comes to high interest rate on savings especially with its Sterling Recurring Deposit Account (SRDA). This account is an investment account that is designed to allow you save towards a specific target or goal. Its tenor ranges from 6 months to 5 years.
Features of the Sterling Recurring Deposit Account (SRDA)
- The minimum monthly deposit is N50,000
- No limit to the monthly deposit but not less than the minimum deposit of N5,000
- Customers can access a credit card limit or personal loan of 80% of their investment value using the investment as cash collateral
- The interest rate is around 1.15% to 2% per annum
- If you terminate the contract before the end of the saving tenor, you will be charged 50% of the accrued interest.
This is one of the fast rising banks in Nigeria and it has made the list of high paying banks in Nigeria based on interest rate with its Polaris Wise account. This is a 3 in 1 high yield savings account that combines the features of savings, current and fixed deposit account. It encourages you to save more and earn more.
Features of the Polaris Wise Account
- It has a minimum opening and operating balance of N10,000
- Non-clearing cheque book on request
- It allows access to e-channel platforms
- It interest rate ranges from 1.15% to 2% per annum
- Debit card issuance
Some Other Banks
- Standard Chartered Bank (eSaver Account)
- Unity Bank Plc (Target Savings Account)
- Heritage Bank Plc (HB Plus Hybrid Account)
The banks we talked about in this article are some of the highest paying banks in Nigeria based on interest rate although the article is subject to changes based on latest updates and developments.
The banks offer you the opportunity to earn more money from savings as they offer high interest rates through their high savings accounts. We have talked about the banks and their high interest rate accounts so look through the banks we mentioned and see the one that is most suitable for you.