Fixed Deposit Rates in Nigeria 2026: Which Banks Pay the Most?

Nigerians parked an estimated ₦28.4 trillion in bank term deposits at the close of the first quarter of 2026, according to the Central Bank of Nigeria's latest money and credit statistics. That number is remarkable for two reasons. First, it represents a near-tripling of the figure recorded in the same period of 2023. Second, the bulk of that money still earns rates that struggle to keep pace with headline consumer price inflation, which the National Bureau of Statistics (NBS) clocked at 15.91% year-on-year in June 2026, the first half-year of genuine disinflation since the CPI was rebased.

The arithmetic has finally turned. A depositor earning 18% per annum on a fixed deposit (the rough median across Tier 1 banks in 2026) now clears headline inflation by roughly two percentage points, the first positive real margin since 2023. The margin is thinner against food inflation, which is what most households actually feel, and it only exists at the rates banks will negotiate rather than the ones they advertise. Understanding where the higher rates actually sit, and what conditions attach to them, is therefore not a theoretical exercise. It decides whether your savings finally grow in real terms or keep shrinking quietly.

What Rate Does the CBN Actually Mandate?

The CBN does not set fixed deposit rates directly. What it controls is the Monetary Policy Rate (MPR), currently at 26.50% after the Monetary Policy Committee began easing in 2026; at its 305th meeting the Committee held the rate there unanimously. The MPR acts as a ceiling of sorts on the cost of funds, though banks retain substantial discretion in what they pass through to retail depositors.

Under the CBN's existing framework, the minimum interest payable on savings deposits is 30% of the MPR, which currently works out to a floor of 7.95%. CBN data show most large banks sitting exactly on that benchmark, with a second tier quoting 8.00% to 8.25%. Fixed deposits carry no mandated floor and are priced entirely at each bank's discretion. In practice, banks use their current liquidity position, their deposit-to-loan ratio targets, and competitive pressure to set term rates. When systemic liquidity is tight, as it has been through most of 2025 and into 2026, the rates on offer tend to rise.

The CBN's Banking Supervision Annual Report 2025, published in February 2026, confirmed that the average deposit rate across the banking system rose to 15.4% in 2025, up from 10.9% in 2024. That aggregate, however, masks a wide dispersion between banks and across tenors.

Which Banks Are Paying the Most in 2026?

The competitive landscape for fixed deposits in Nigeria in 2026 clusters around three broad groups: large Tier 1 banks that offer volume and safety but typically moderate rates; mid-sized commercial banks that compete aggressively on rate to attract deposits; and digital-first banks and microfinance institutions at the upper end of the scale.

Tier 1 commercial banks (GTBank, Zenith, Access, UBA, First Bank)

Rates among the five Tier 1 banks have converged in a band broadly between 17% and 22% per annum for tenors of 90 to 180 days as at June 2026. Guaranty Trust Bank (GTBank) and Zenith Bank sit at the lower end of this band, typically quoting 17.5% to 19.5% for retail clients on tenors up to six months, with negotiated rates available on deposits above ₦50 million. Access Bank and UBA have been slightly more aggressive, with published retail rates of between 19% and 22% for the same tenors. First Bank's FBN Fixed Deposit product has been quoted at around 18% to 20.5% for 90- to 365-day tenors, with a promotional 21% floor periodically offered on deposits of ₦5 million and above.

All five banks require minimum deposits in the range of ₦100,000 to ₦500,000 for retail fixed deposit accounts opened through digital channels.

Mid-tier and commercial banks

Stanbic IBTC, Sterling Bank, Fidelity Bank, Polaris Bank and FCMB have been quoting rates in the 21% to 26% range for comparable tenors. Fidelity Bank in particular has historically competed on deposit rates and in the first half of 2026 has continued to offer promotional 90-day rates approaching 25% for deposits above ₦1 million. Sterling Bank's Specta investment products, while technically structured savings instruments rather than pure fixed deposits, have offered returns in the 22% to 27% range.

Digital banks and high-yield savings products

Kuda Bank's Term Deposit product, PalmPay's Flexsave, and Opay's OWealth product have all offered rates above 18% on short-term placements, with some promotional offers touching 28% to 30% annualised on 30-day locks. Carbon's fixed savings product has been quoted at around 20% to 25% depending on tenor. Piggyvest's Safelock feature, which is technically a contractual savings lock rather than a licensed deposit product, has quoted effective annualised returns of approximately 12.5%, which is materially lower than bank fixed deposits at current market rates.

It is worth noting that the higher-rate digital offers often come with important conditions: no early withdrawal, automatic rollover unless cancelled within a narrow window, and in some cases NDIC deposit insurance cover that differs from the ₦5 million per depositor limit that applies to licensed commercial banks.

| Bank / Platform | Tenor | Rate (p.a., June 2026) | Minimum Deposit | |---|---|---|---| | GTBank | 90–180 days | 17.5% – 19.5% | ₦100,000 | | Zenith Bank | 90–365 days | 17.5% – 20.0% | ₦100,000 | | Access Bank | 90–365 days | 19.0% – 22.0% | ₦100,000 | | UBA | 90–365 days | 19.0% – 22.0% | ₦250,000 | | First Bank | 90–365 days | 18.0% – 21.0% | ₦500,000 | | Fidelity Bank | 90–180 days | 22.0% – 25.0% | ₦1,000,000 | | Sterling Bank | 30–365 days | 21.0% – 26.0% | ₦50,000 | | Kuda / PalmPay | 30–180 days | 18.0% – 30.0%* | ₦1,000 |

*Promotional rates on digital platforms are subject to change without notice and are not guaranteed beyond the stated term.

How Inflation Erodes What the Rate Advertises

The NBS CPI report for June 2026 put headline inflation at 15.91% and food inflation at 17.52% year-on-year, with food prices still accelerating at 3.75% month-on-month. At those levels the upper end of the fixed deposit band comfortably clears headline inflation, and even mid-band Tier 1 rates now preserve purchasing power against everything except the fastest-rising food items.

The concept that anchors this calculation is the real interest rate: the nominal rate minus the inflation rate. At 22% nominal and 15.91% headline inflation, the real rate is positive 6.1%. Even against food inflation at 17.52%, a 22% deposit clears 4.5 points. Both numbers were unthinkable a year ago. On top of that real margin, fixed deposits offer liquidity certainty for a defined term and NDIC-backed capital protection. Those are genuine and non-trivial advantages relative to holding physical naira in a current account earning 3% to 4%.

For context, the NBS Household Living Standards Survey data suggest that the median Nigerian household keeps the equivalent of roughly 1.5 to 2 months of income in accessible cash or savings accounts. Moving even a fraction of that balance from a current account to a 90-day fixed deposit generating 20% versus 4% represents a meaningful improvement in the rate of nominal preservation, even if real preservation remains elusive.

What to Check Before You Lock In

The rate advertised in a bank's branch or on its app is rarely the rate available to all depositors on all ticket sizes. Several variables determine the actual offer:

Tenor: Rates rise with tenor in most banks' schedules, but not always linearly. A 180-day rate is often 1 to 2 percentage points above a 90-day rate. Rates on tenors above one year have in some cases been lower than 180-day rates in 2026, as banks have been reluctant to commit to long-dated liabilities in an uncertain rate environment.

Ticket size: Most banks operate at least two tiers: retail (below ₦5 million to ₦10 million) and wholesale or high-net-worth (above that threshold). Negotiated rates on large deposits can exceed published retail rates by 3 to 5 percentage points.

Early withdrawal penalties: The standard CBN-era practice is to apply the savings deposit rate (rather than the agreed fixed rate) on any amount withdrawn before maturity. Some banks apply an additional penalty of 1% to 3% of the principal for premature termination. Read the account terms, not just the headline rate.

Withholding tax: Under the Personal Income Tax Act as amended, interest income from fixed deposits is subject to 10% withholding tax at source. This is deducted by the bank before credit and is a final tax for individuals. FIRS confirmed in a 2023 circular that the 10% WHT on investment income applies regardless of whether the depositor is resident or non-resident. A 22% gross rate becomes an effective 19.8% net-of-tax rate. All rate comparisons should be made on a post-WHT basis for accuracy.

NDIC cover: The Nigeria Deposit Insurance Corporation protects up to ₦5 million per depositor per bank as at 2026. Depositors with balances materially above that threshold should consider spreading deposits across institutions rather than concentrating in a single bank.

For a broader view of how naira savings products sit within the landscape of inflation-protection options available to Nigerian households, including dollar-denominated instruments and the growing stablecoin deposit market, see our complete guide to protecting your savings from naira inflation.

The Rate Environment Looking Forward

The outlook for fixed deposit rates through the remainder of 2026 depends heavily on the CBN's next moves on the MPR. Market consensus, as reflected in the NGX bond market and in commentary from analysts at CSL Stockbrokers and Coronation Research, is that the Committee will begin a gradual easing cycle in the second half of 2026 if the NBS CPI prints for May and June 2026 confirm the disinflation trend visible in the April data.

If the MPR falls by 100 to 200 basis points before year-end, fixed deposit rates at Tier 1 banks will likely compress towards the 15% to 18% range. That compression may come faster at the digital banks, which have been more willing to adjust rates rapidly in line with prevailing liquidity conditions.

The implication for depositors is straightforward: locking in a 12-month fixed deposit at current rates before the MPR starts falling locks in today's higher nominal yield for the full term. Whether that is the right strategy depends on individual liquidity needs and one's view on the inflation trajectory. The NBS data will be the guide.

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Regulatory note: Fixed deposit products referenced in this article are regulated by the Central Bank of Nigeria under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the CBN Guidelines on Deposit Interest Rates. Interest income is subject to 10% withholding tax at source under FIRS rules. The Nigeria Deposit Insurance Corporation (NDIC) insures eligible deposits up to ₦5 million per depositor per licensed bank. The Cowrie is an independent editorial publication. It does not hold a financial services licence issued by the CBN, the Securities and Exchange Commission (SEC Nigeria), or any other regulatory authority. Nothing published here constitutes financial advice, an offer of financial products, or a solicitation to invest. Readers should seek independent financial advice before making any investment or savings decision.