Business
Access Bank announces interest rates cut
BY EMEKA EJERE
Leading Nigeria’s retail banking service provider, Access Bank Plc. has announced downward review of interest rates on some of its products.
In an e-mail sent to its customers and made available to Business Hallmark, the bank stated that the new rates, which followed the recent changes in the Monetary Policy Rate (MPR), will apply with effect from Thursday, May 28, 2020.
“Following the recent changes in the Monetary Policy Rate, the bank has revised interest rates on some products. The new rates will apply effective Thursday, May 28, 2020”, the e-mail read.
The new rates are as follows:
| Product Name | Current Interest Rate | New Interest rate |
| Premier Savings | 4.05% | 3.75% |
| Premier Savings – Private | 4.05% | 3.75% |
| Target Savings Account | 4.05% | 3.75% |
| Early Savers | 4.05% | 3.75% |
| Early Savers Tier 2 | 4.05% | 3.75% |
| Solo | 4.05% | 3.75% |
| Instant Savings Tier 2 | 4.05% | 3.75% |
| Instant Savings Tier 1 | 4.05% | 3.75% |
| Diaspora Savings Account | 4.05% | 3.75% |
| Everyday Banking (Savings) | 4.05% | 3.75% |
| Community – Savings Account | 4.05% | 3.75% |
| HIDA | Less than N100,000 – 2% | Less than N100,000 – 2% |
| HIDA | N100,000 – 4,999,999 = 4.10% | N100,000 – 4,999,999 = 3.80% |
| HIDA | N5,000,000 – 249,999,999 = N4.45% | N5,000,000 – 249,999,999 = N4.15% |
| HIDA | N250million & above = 4.10% | N250million & above = 3.80% |
| DiamondXtra | Previously 2% | 1% |
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), had on Thursday, May 29, reduced the MPR to 12.5 per cent from 13.5 per cent, in a bid to stimulate the economy ahead of the projected economic recession arising from the impacts of Coronavirus (COVID-19) pandemic.
MPR is the interest rate at which CBN lends to the commercial banks and also the benchmark against which other lending rates in the economy are pegged.
The committee, however, retained the Cash Reserve Ratio (CRR) and the Liquidity Ratio (LR) at 27.5 per cent and 30 per cent respectively. The Committee also retained the Asymmetric band at plus 200 basis points and minus 500 basis points around the MPR.
CBN Governor, Mr. Godwin Emefiele, who disclosed these at the end of the MPC meeting, said that seven members of the committee voted to cut the MPR by 100 basis points, while two members voted for a 150bps rate cut, with one member electing for a 200bps rate cut.