Banks reducing interests on deposits – BoG report

The Bank of Ghana’s latest Average Interests (IA) on deposits report released shows a decrease in the average minimum interests to be paid annually on deposits of customers’ funds logged at commercial banks in the country between May and September 2016.

Figures from the central bank indicate a decrease from 12.3 percent to 12.2 percent.

According to the report indigenous bank UT Bank offers the highest interest on deposits.

This means that if customers of a bank deposit money at UT Bank, they were likely to receive 15.8 percent as interest annually on the deposit with Standard Chartered Bank occupying the bottom of 24th position, offering the lowest interest of 4.4 percent on deposits.

The AI is the true Average interest paid on deposits by banks on deposits over a period.

In second place is South African bank, Stanbic Bank offering 14.7 percent followed by the bank of the year 2015 Fidelity Bank offering 14.5 percent on deposits while First National Bank offers 14.4 percent, occupying the forth place.

Capital Bank, Access Bank and Ecobank all occupy the firth place are offering 14.3 percent interest on deposits.

GT Bank offers 14.1 percent interests to customers ‘deposits.

First Atlantic Bank, GN Bank all offer 14.0 percent while Unibank, Bank of Baroda, Sovereign Bank and UBA all offer 13.8, 13.7, 13.3 and 12.8 percents respectively.

In addition, Bank of Africa and Barclays are all offering the same interests on deposits of 13.4 percent occupying the 10th position.

Also occupying the 13th, 14th, 15th, and 16th positions were Sahel Sahara 12.6 percent, HFC 12.4 percent, and Energy Bank 12.1percent while SG Bank and The Royal Bank all offers 11.0 percent.

Cal Bank’s average interests paid on deposits is 10.7 percent at 17th position, while FBN Ghana offers 10.4 percent, NIB 10.0 percent and GCB Bank 9.8 percent occupying 18th, 19th and 20th positions respectively.

However, indigenous banks, ADB and Prudential Bank Limited and Nigerian based Zenith Bank are among the bottom four banks offering deposits rates below 9.5 percent to the general public.

ADB offers 6.0 percent, Prudential Bank Limited 9.4 percent while Zenith Bank offers 8.7 percent according to the bank of Ghana.

Meanwhile some customers of banks who spoke to the thebftonline.com say the figure published by the central bank does not reflect the situation on the ground.

A customer who spoke us on condition of unanimity said for instance Access bank gives 3 percent as interest on deposits, Cal Bank is said to be offering 2.7 percent, Bank of Africa offers 3 percent, Fidelity 1.5 – 5 percent while customers of ADB, UMB and Barclays Bank say the interests paid on deposits varies per deposits made.