Fidelity Bank Reduces Savings Interest Rates

By Modupe Gbadeyanka

Mid-level financial institution in Nigeria, Fidelity Bank Plc, has announced a downward review of interest rates on all its savings products to depositors.

The lender, in an emailed notice to its customers, which was seen by Business Post, explained that its action followed the recent downward review of the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN).

The bank further stated that the new rates became effective on Thursday, May 28, 2020.

Last month, the banking sector regulator announced the downward review of the benchmark interest rate to 12.50 percent after its Monetary Policy Committee (MPC) meeting held in Abuja.

“Following the downward review of the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN), our bank has revised the interest rates on all its savings products including the High Yield Savings Account (HYSA).

“Please see below new rates effective Thursday, May 28, 2020,” the message from Fidelity Bank on Wednesday, June 24, 2020, stated.

According to the lender, the new interest rate on its Fidelity Savings Account is now 3.75 percent instead of the former 4.05 percent. The Fidelity Flex Account now has an interest rate of 3.75 percent as against the previous 4.05 percent, while the Easi Save Account now has an interest rate of 3.75 percent versus the old rate of 4.05 percent.

Furthermore, the SWEETA Account, which used to have an interest rate of 2.835percent, has been dropped to 2.625 percent (it also offers N150,000 school fees support as a loyalty cash reward to customers every quarter).

The FPSS Account, which used to have an interest rate of 2.835 percent, has been cut to 2.625 percent (it also offers N500,000 extra income as a loyalty cash reward to customers every quarter.

In the notice, Fidelity Bank said on its HYSA, the new interest rate for deposits below N100,000 is 3.75 percent versus the previous 4.05 percent, while for N100,000 to N999,999, the new rate is 4.15 percent instead of the old rate of 4.45 percent.

In addition, under the HYSA, savings of N1 million to N4.999 million now attracts 4.65 percent in contrast to the prior rate of 4.95 percent, while for N5 million and above attracts 5.15 percent versus the previous 5.45 percent.