Following CBN’s decision to peg savings account deposit rates at 1.25% late last year, this article has become very necessary to inform us all of the new interest rates the ‘High Yield’ accounts now bear. The interest on the normal savings account in Nigeria was stable at 4.06% per annum, before the major crash to the current rates. Banks have now updated their interest rates to reflect the new MPR. This article, which looks at the best high interest (target) savings account in Nigeria in 2021, should be a guide to help decide if you want to keep your funds lying idle in the banks or get more creative with it.
Features of a High Interest Savings Account in Nigeria
Basically, the features of the high interest savings account are also its benefits.
- Discourages withdrawals
On a high-interest savings account, you will be told not to do your normal frequent withdrawals or online transactions. You keep it there, you leave it there. You can make further deposits anyway. Any withdrawal will invoke a forfeiture of any interest they have lined up for you. Some banks still allow 2-3 withdrawals.
- High interest
The high interest savings account typically offers interests above what your normal savings account will give to you.
c. Charges exemption
The high interest savings account is exempted from ATM and SMS charges. This is why you are discouraged from taking cards on this type of account because you are not even ought to withdraw from it! It’s called “savings” for a reason. All these, but CBN statutory charges like the N50 stamp duty charge must be applied to this type of account as normal.
d. Lock-in feature
The lock-in feature is basically a lien or a Post No Debit (PND) placed on your account on your instruction to disallow ANY form of withdrawal, except you instruct otherwise. This means you cannot take emergency money from this account once you activate this feature.
e. A minimum opening and operating balance
Typically, a high interest savings account must have a minimum opening balance, usually around the range of ₦5,000 – ₦100,000.
Best High Interest Savings Accounts in Nigeria
Here, we are going to give you the best high-interest savings account in Nigeria in no particular order, as most accounts are now pegged circa the range of 1.25% – 2.90%.
1. Stanbic IBTC Max Yield Savings Account (MYSA)
This was, arguably, the best high interest savings account in 2020, before the crash. The Stanbic IBTC MYSA (MaxYield) account was introduced in March 2019. To earn interest on this account, you must adhere to its terms and conditions.
Features and Benefits
- Third party deposits and withdrawals by cheques into your MaxYield account (Maximum deposit of N2 million and non-clearing 3rd party cheque withdrawals)
- Cash deposit and withdrawal at any Stanbic IBTC Personal Deposit Machine and ATM respectively
- Make payments on the Web and via POS with your debit MasterCard
- Access to all E-Banking channels
- Set up direct debits or standing orders for regular bill payments
- Bonus interest of 0.5% plus 10% of MPR per annum if daily balance is more than N100,000.
- Interest of 10% of MPR per annum if balance is less than N100,000 or more than 1 withdrawal per month.
- Interest is forfeited at the 5th withdrawal in a month. Interest is paid monthly less 10% withholding tax.
- 1.15% applies for minimum daily balance less than N100,000 or more than one withdrawal in a month
Requirements
- A minimum of N10,000
- A completed account opening form.
- Two recent clear passport photographs of each signatory to the account
- A valid ID (e.g. Drivers’ license, International passport, National ID, Voters’ Card)
- Proof of residential or official address validated by a Utility Bill (such as electricity, water or waste bills)
2. Fidelity Bank High Yield Savings Account (HYSA Account)
Market observers hailed the Fidelity High Yield Savings Account in 2020, as one of the best in the market. Fidelity Bank currently offers the highest interest rates to savings deposit accounts (target) in Nigeria in 2021 – 2.9%. The current Fidelity Bank HYSA savings accounts interest yield tandem the highest volume, is actually the highest observed.
Features and Benefits
- View the interest table below:
| Balance from | Balance to | Interest Accrued |
| ₦0.00 | ₦99,999.99 | 1.15% |
| ₦100,000.00 | ₦999,999.99 | 1.28% |
| ₦1,000,000.00 | ₦4,999,999.99 | 1.40% |
| ₦5,000,000.00 | ₦49,999,999.99 | 2.15% |
| ₦50,000,000.00 | ₦99,999,999,999,999.98 | 2.90% |
- You earn an extra 1% bonus interest if your withdrawals are not made in six(6) months.
- Interest is paid monthly
- Debit card of choice at normal price
- Cheque, cash, and warrant deposits are allowed
- Access to internet banking services granted
- Minimum operating balance of ₦5,000
Requirements
- A completed HYSA account opening form (new client),
- An instruction to open a HYSA account (existing client)
- One reference
- A recent utility bill
- A valid government-issued ID card
3. Access Bank HIDA Account
The Access HIDA savings account is the second runner-up in my list because it still offers lower interest yields to low savers.
This product belonged to the defunct Diamond Bank, which merged with Access Bank of Nigeria. High interest savings account 2021. The HIDA account was one of the three products that were taken from the defunct banks’s catalog. This was done because of the high sellability features.
Features and Benefits
- Operating balance of ₦500. You will be penalized (₦150) if you allow your balance go below the minimum operating balance.
- Interest on the HIDA account accrues daily and is paid monthly
- View HIDA’s expansive interest table below:
| DEPOSIT VOLUME | INTEREST (PER ANNUM) |
| a. ₦0 – ₦100,000 | 0.50% |
| b. ₦100,000 – ₦4,999,999 | 1.50% |
| c. ₦5,000,000 – ₦99,999,999 | 2% |
| d. ₦100,000,000 – ₦249,999,999 | 2.50% |
| e. ₦250 million and above | 2.15% |
- Gives you the convenience and flexibility of depositing cash, other banks cheques, and dividend warrants at any of our branches.
- Enjoy 4 free withdrawals without forfeiture of credit interest payment on available balances maintained.
- Encourages you to save as the account does not come with a debit card
- The convenience of being able to transfer money between your own Access Bank accounts in the branch, online, or over the phone (if you are registered for Access/Diamond online and Access/Diamond mobile)
- A penalty charge of N150 if the balance goes below N5,000
Requirements
- A completed HIDA opening form (new clients), and instruction to open (existing clients)
- One (1) passport photograph
- Personal Identification (Any of these): Voters’ card, National ID, International passport, or Drivers license
- Resident Permit (for foreign nationals only)
- Address verification: (Any of these)Utility bill (PHCN, Land Use, Waste bill, etc.)
- Minimum Opening Balance – N100,000
- Minimum Operating Balance- N500
4. FCMB Premium Savings Account
This account has to be the most liberal on this list. This is because you are allowed to make 3 withdrawals on your account without losing interest. FCMB offers one of the best high interest savings accounts in Nigeria as well. High-interest savings account 2021.
FCMB’s Premium Savings Account offers up to 1.15% deposit once your deposit is N100,000 or above.
Features and Benefits
- Account opening balance of N100,000
- Allows third party over-the-counter withdrawals
- Allows lodgement of clearing instruments, including dividend warrants
- Four (4) free domestic bank drafts or manager’s cheques allowed on the account per month
- Unlimited withdrawals allowed. However, more than four (4) withdrawals in a month will lead to forfeiture of interest for that month
- Can be operated as an individual or joint account
- Platinum/Gold Debit card gives you access to over 9,000 ATM nationwide with increased spending limit
Requirements
- Two (2) satisfactory references if you are a new customer
- Valid proof of identification
- A recent utility bill
- A completed opening form
- For non-Nigerian applicants, a copy of Resident or Work Permit.
5. UBA – UBA Target Account
The UBA Target account is a savings account specifically designed for individuals to save towards a project or set goal. High interest savings account 2021. Like the others on this list, it offers customers the convenience of savings and maximizing their investments, whilst having flexible access to their account at any time.
Features and benefits
- View UBA’s Target Account interest table below:
| N50,000 – N99,999 | 1.05% |
| N100,000 – N999,999 | 1.10% |
| N1,000,000 – N4,999,999 | 1.15% |
| N5,000,000 – N999,999,999,999 | 1.20% |
- Minimum Opening Bal: N50,000
- Minimum Operation Bal: N50,000
- Deposit of OBCs and Dividend Warrants allowed
- Debit Card available
- Withdrawal across the counter – Free
- Interest is forfeited after 4 withdrawals in a month
- Funds transfer allowed within and outside the bank
- Online, Mobile Banking, USSD etc.
Requirements
The requirements to open uba target savings account are as follows;
- Duly completed Account Opening Form
- Minimum Opening Balance N50,000
- 1 Recent Passport Photograph
- Government issued ID (International Passport, Driver’s License, Permanent Voters card, National ID Card/NIMC Slip
- Parent’s valid ID (National ID/Driver’s License/Permanent Voters card/International Passport
6. GTBank Target Savings Account (GT-Target)
The Guarantee Trust Bank also has one of the best high yield savings accounts in Nigeria, called the GT-Target. This is another high interest yielding account that encourages savings for a predetermined purpose.
In GTB, this product is not readily available to ‘new’ customers. High interest savings account 2021, the account can only exist as a sub of your main account. Therefore, you must have had an account with them prior to the GT-Target. Both the main and the sub-accounts can be opened in a day, though.
GT-Target is a high interest-bearing account that encourages financial discipline through savings. The account is designed to enable you to e towards a specific target.
Whether you are saving towards your dream wedding, or have set sight on a new car, with GT Target, you are guaranteed to achieve your financial goals.
Features and benefits
- 1.15% interest rate per annum and additional 1% bonus interest to customers who maintain Standing Order deposit for 1 year.
- GT Target is a non-transactional account and can be opened on Internet Banking or at any GTBank branch.
- Minimum mandatory standing order of N5,000
- The regularity of the Standing Order can be monthly, quarterly, semi-annually and annually.
- Your GT Target interest accrues daily and is capitalized every 6 months.
- Savings in GT Target has to be maintained consistently for at least 6 months to qualify for interest.
- No cash withdrawals from the account but 3rd party transfers into the GT Target can be done.
How to open GT-Target Savings Account:
The GT-Target savings account can simply be opened by logging on to the internet banking or visiting a branch.
- Log on to Internet banking
- Select GT-Target from the request menu to open an account,
- Select a suitable Standing Order amount and indicate the most preferred savings option (i.e. monthly, quarterly or semi-annually)
or
- Visit any GTBank branch
7. Union Bank Target Savings Accounts
Unionkorrect
The Unionkorrect account is a tenured saving targeted at a future expense. With a tenor of 4 years and a minimum monthly savings of N5000, customers receive a 1.5% interest rate and stand a chance to win cash prizes in the bi-annual draws.
Dai Dai
The Unionkorrect Dai Dai account is a tenured savings targeted at individuals with low disposable income. This account is available only to 11 states in the northern part of Nigeria.
Qatar
This product helps Union Bank customers to save while affording them the opportunity of winning a round trip ticket to Qatar to enjoy the beautiful game in 2022. Customers who save N5,000 monthly for a 5 year period get an interest rate of 1.5%.
Exclusive
This product is designed to specifically pay you higher interest rate on your savings. Customers also stand a chance to win cash prizes in the quarterly draws.
8. Zenith Bank’s Save4Me, EazySave Classic Account, and EazySave Premium Accounts
Save4me is a high-interest yielding account designed for customers to save towards a specific target. The customer can open several target accounts for different purposes. Interest on Zenith Bank’s Target Savings account (SAVE$ME) is 1.15%
Features and benefits
- Virtual account to the main account
- No withdrawal allowed within the first 3 months
- Minimum of 3 months and maximum of 12 months
- Can be rolled over
- Minimum of deposit of N10,000
- Frequency – Daily, weekly, monthly
Requirements
- Account opening form duly completed
- One recent clear passport photograph of signatory
- Identification of signatories (Driver’s License, International Passport,
National Identity Card or Voter’s Card) - Residence permit (where applicable)
- Public Utility Receipt dated within the last three months (PHCN bill, water rate bill, tenement rate, rent
receipt, telephone bill) - Two independent and satisfactory references should you want to deposit cheques over N2,000,000.00
9. Keystone Bank Plc – HISA (High Interest Savings Account)
Interest rate for HISA is 1.15%.
10. Polaris Bank – Polaris Wise
Polaris Wise is a 3-in-1 high yield savings account that combines the features of a savings, current and fixed deposit account. It encourages you to save more to earn more.
Features and benefits
| DEPOSIT VOLUME | INTEREST RATE (per annum) |
| N0 – N100,000 | 1.15% |
| N100,000 – above | 2% |
- Minimum opening and operating balance of N10,000
- Debit card issuance
- Non-clearing cheque book on request
- Lodgement of cheques/dividend warrants of up to N2million; For cheques above N2million, references will be provided
- Access to e-channel platforms
Requirements
- 2 passport photographs
- Bank Verification Number (BVN)
- Valid means of identification (Int’l passport, Driver’s license, National ID, Voter’s card)
- Proof of Address (PHCN, Water bill, Waste disposal bill, tenement, etc.)
- Resident permit (for expatriates)
- Reference forms (only required to allow customer pay in other banks’ cheques)
11. Standard Chartered Bank – eSaver Account
Standard Chartered offers a high yield savings account that encourages you to save for your future financial goals.
Interest rate on account could get up to 1.25%.
Features and benefits
- Free monthly eStatements, online banking and e-alerts
- Maximum of 2 withdrawals per month
- 24/7 access to your account information and free transactions on our online and mobile banking.
- Access to a variety of investment opportunities that suit your financial goals.
- Zero minimum opening balance. Available in local currency only.
- The more you save the more you earn.
12. Sterling Bank – Sterling Recurring Deposit Account (SRDA)
(SRDA) is an investment account designed for individuals that wants to save towards a specific financial target. Tenor ranges from 6 months – 5 years.
Features and benefits
• Interest rate of 1.15% – 2% p.a.
• Minimum monthly deposit of N5,000
• Premature termination before the end of tenor attracts 50% charge of accrued interest
• Automatic reversal of interest rate to the least rate on the product or regular savings account interest rate (whichever is lower) when the contract expires or if there is a default in any monthly contribution.
• No limit to the monthly deposits 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.
Requirements
• Valid means of Identification.
• Completed Account Opening Forms
• One recent passport sized photograph
• Documentary evidence of address in Nigeria.
• CERPAC- Combined Expatriate Residence Permit and Alien Card (West African nationals excluded).
13. Unity Bank Plc – Target Savings Account
Unity Bank target savings account is a product for all kinds of business who need to put some funds away for ventures and earn interest. High interest savings account 2021.
Features and benefits
- Flexible opening balance of N2,000 and operating balance of N5,000
- Personal cheque and dividend warrant lodgement applicable
- Cash lodgement and payment
- Installment deposit plan to be mutually agreed and fixed based on investor’s financial capabilities and tenor
- Monthly statements of account (by email or surface mail)
- Threshold 1.e. operating balance of N5000.00, flexible deposit options i.e. weekly, monthly, quarterly
- Access to PTA for international passengers (e.g. holy pilgrimages)
Note: the information contained in this article is not static, may be updated from time to time as the banks update their interest rates.
High interest savings account 2021.
