In a bid to address the sluggish growth in deposits recorded in the first half of 2021 and attract more funds from customers, Banks have raised interests on deposits by 140 per cent.
This development is as a response to CBN’S raising of interest rate on one-year treasury bills to 10.1percent in the first half of the year.
The action of the Apex bank had triggered the renewed preference for investment in treasury bills which became more pleasing than putting money in bank deposits.
The actions of the CBN consequently restrained banks’ ability to attract fixed deposits from customers, a development which, resulted in the moderate growth recorded in customers’ deposits in the H1’21.
The latest reports published by the CBN showed that average deposit rates of the top 13 banks rose by 140 per cent, from 2.2 percent to 5.3 percent which is a huge growth.
The top thirteen banks are Access Bank, Ecobank, FirstBank, FCMB, Fidelity Bank, GTBank, Stanbic IBTC, Sterling Bank, Union Bank, Unity Bank, Wema Bank and Zenith Bank.
