For millions of Nigerians, saving money is not just about setting aside extra cash, it’s about creating stability, preparing for emergencies, and growing wealth over time. But with inflation rates rising and the cost of living increasing across the country, traditional savings methods like keeping money at home or in informal groups are no longer enough.
This is why many Nigerians are now turning to bank savings plans that pay monthly interest. These plans allow you to earn passive income every month while your money remains safe and accessible in a regulated financial institution. Instead of letting your cash sit idle, your savings can generate consistent interest helping you reach financial goals faster.
According to data from the Central Bank of Nigeria (CBN), savings deposits in Nigerian banks have grown significantly in recent years as more people seek secure, interest-bearing accounts. Many commercial and microfinance banks now offer special savings plans that pay monthly, giving customers flexibility, steady income, and attractive interest rates.
In this comprehensive 2025 guide, we’ll cover:
-
What monthly interest savings plans mean and how they work.
-
The best banks in Nigeria that pay monthly interest on savings.
-
The pros and cons of different savings plans.
-
How to open a high-interest savings account step-by-step.
-
A summary table comparing top savings plans.
-
Practical tips for maximizing your returns.
If you’ve been searching for best savings plan in Nigeria with monthly interest, which bank pays monthly interest in Nigeria, or how to earn passive income from savings, this guide is for you.
What Is a Monthly Interest Savings Plan?
A monthly interest savings plan is a type of savings account that pays interest on your balance every month. Instead of receiving your interest quarterly or annually, you earn a smaller but consistent payout each month.
How It Works
When you deposit money into a bank’s savings account that offers monthly interest:
-
The bank calculates interest based on your balance and the agreed rate.
-
The interest is paid into your account monthly — usually at the end of each month.
-
You can choose to withdraw or reinvest the interest to grow your savings further.
For example, if your bank offers 6% annual interest, your monthly interest rate would be 0.5% (6% ÷ 12 months). So, if you have ₦500,000 in your account, you earn ₦2,500 monthly — without lifting a finger.
Why Choose a Savings Plan That Pays Monthly Interest?
Choosing a bank savings plan that pays you monthly interest has several advantages, especially in Nigeria’s current economy. Here are some key reasons why it’s a smart choice:
1. Steady Monthly Income
You receive a reliable stream of income every month, which can help cover expenses like bills, groceries, or transportation.
2. Compounding Effect
By reinvesting your monthly interest, your balance grows faster — leading to higher future earnings.
3. Safe and Regulated Savings
Your deposits are protected by the Nigeria Deposit Insurance Corporation (NDIC), giving you peace of mind that your funds are secure.
4. Flexible Access to Funds
Unlike fixed deposits, you can withdraw your money anytime without losing all your accrued interest (depending on bank terms).
5. Better than Dormant Cash
Keeping cash at home or in informal cooperatives doesn’t generate returns. With a monthly interest plan, your money works for you.
Types of Bank Savings Plans That Pay Monthly Interest in Nigeria
Different banks offer various types of savings plans designed to suit customers’ financial goals and lifestyles. The main types include:
1. Regular Savings Accounts
These are standard bank accounts where you earn interest monthly or quarterly based on your balance. They are easy to open and suitable for beginners.
2. Target or Goal-Oriented Savings Plans
These allow you to save toward a specific goal (like rent, school fees, or a car). You deposit regularly, and the bank rewards your consistency with monthly or quarterly interest.
3. High-Interest or Premium Savings Accounts
Designed for customers with higher balances, these accounts offer higher monthly interest rates and may include additional benefits such as free transfers or debit cards.
4. Hybrid Savings Plans (Savings + Investment)
These combine the features of a savings account and an investment account, allowing you to earn interest monthly while keeping your funds somewhat liquid.
Best Banks in Nigeria That Pay Monthly Interest (2025 Update)
Below are the top-performing Nigerian banks offering savings plans that pay monthly interest.
1. Access Bank – AccessMore Savings Plan
Interest Rate: Up to 6.25% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
Access Bank’s AccessMore plan rewards consistent savers with competitive interest rates paid monthly. It’s available for individuals, students, and business owners.
Key Benefits:
-
Zero account maintenance fees.
-
Free online banking access.
-
Monthly interest credited automatically.
2. Zenith Bank – EazySave Plus Account
Interest Rate: Up to 5.75% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
Zenith Bank’s EazySave Plus is designed for individuals who want simple access to their funds while earning regular monthly interest.
Key Benefits:
-
No hidden charges.
-
Free debit card.
-
Flexible withdrawals.
3. GTBank (GTCO) – GTCrea8 and SavePlus Account
Interest Rate: 4.9% to 5.5% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
GTBank offers innovative digital savings plans that combine accessibility with regular interest payouts.
Key Benefits:
-
Interest paid monthly.
-
Free mobile app and internet banking.
-
Instant account opening online.
4. First Bank – FirstInstant Savings Account
Interest Rate: Up to 5.75% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
First Bank’s FirstInstant plan is ideal for customers who prefer regular savings and steady monthly income.
Key Benefits:
-
No hidden charges.
-
Works seamlessly with USSD banking.
-
Interest calculated daily and paid monthly.
5. UBA – UBA Savings Plus Account
Interest Rate: Up to 6% per annum
Interest Payment: Monthly
Minimum Balance: ₦2,000
Why It’s Great:
UBA’s Savings Plus account rewards disciplined savers and business-minded individuals who maintain consistent deposits.
Key Benefits:
-
High monthly interest.
-
Free UBA prepaid card.
-
Access to digital banking tools.
6. Fidelity Bank – Smart Savings Account
Interest Rate: Up to 6.5% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
Fidelity Bank rewards regular savers through automated monthly interest payments and financial goal support.
Key Benefits:
-
Consistent interest earnings.
-
Free SMS and email alerts.
-
24/7 online banking access.
7. Union Bank – UnionSave Account
Interest Rate: 5% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
Union Bank’s UnionSave plan provides steady returns while giving easy access to funds.
Key Benefits:
-
Monthly interest payout.
-
Simple account setup.
-
No penalty for withdrawals.
8. Stanbic IBTC – FlexSave Account
Interest Rate: Up to 6.8% per annum
Interest Payment: Monthly
Minimum Balance: ₦1,000
Why It’s Great:
Stanbic IBTC’s FlexSave plan is one of the highest-paying savings plans in Nigeria, ideal for individuals seeking monthly income from their savings.
Key Benefits:
-
High interest rate.
-
Access to Stanbic’s mobile app.
-
NDIC-insured funds.
Summary Table: Best Nigerian Bank Savings Plans That Pay Monthly Interest
| Bank Name | Savings Plan | Interest Rate (Per Annum) | Interest Payment | Minimum Balance | Key Features |
|---|---|---|---|---|---|
| Access Bank | AccessMore Savings | Up to 6.25% | Monthly | ₦1,000 | No fees, mobile banking |
| Zenith Bank | EazySave Plus | Up to 5.75% | Monthly | ₦1,000 | Free card, flexible access |
| GTBank | SavePlus | Up to 5.5% | Monthly | ₦1,000 | Easy online setup |
| First Bank | FirstInstant | Up to 5.75% | Monthly | ₦1,000 | USSD-friendly |
| UBA | Savings Plus | Up to 6% | Monthly | ₦2,000 | Prepaid card, online tools |
| Fidelity Bank | Smart Savings | Up to 6.5% | Monthly | ₦1,000 | Automated interest |
| Union Bank | UnionSave | 5% | Monthly | ₦1,000 | No penalties |
| Stanbic IBTC | FlexSave | Up to 6.8% | Monthly | ₦1,000 | High yield, secure |
How to Open a Bank Savings Plan That Pays Monthly Interest
Opening a monthly interest savings account in Nigeria is simple. Follow these steps:
Step 1: Choose a Bank
Select a reputable Nigerian bank offering monthly interest savings plans.
Step 2: Visit a Branch or Apply Online
Most banks allow online applications. Alternatively, visit a branch with your valid ID, passport photo, and proof of address.
Step 3: Complete the Application Form
Provide accurate personal and contact details.
Step 4: Deposit the Minimum Balance
Each bank has a minimum deposit requirement — usually ₦1,000 to ₦5,000.
Step 5: Activate Your Account
Once approved, your account becomes active, and you can begin earning monthly interest on your balance.
How to Maximize Your Monthly Interest Earnings
-
Keep a High Balance: The higher your savings balance, the more interest you earn monthly.
-
Avoid Frequent Withdrawals: Some banks reduce your interest rate if you withdraw often.
-
Use Digital Banking: Monitor your earnings and track your growth through the bank’s mobile app.
-
Set Automatic Transfers: Automate monthly deposits from your salary account.
-
Reinvest Your Interest: Compound your returns by reinvesting interest into your savings.
Benefits and Drawbacks of Monthly Interest Savings Plans
Benefits
-
Regular income flow.
-
Safe, insured funds.
-
Encourages financial discipline.
-
Flexible withdrawals.
-
Suitable for short- and long-term goals.
Drawbacks
-
Lower rates compared to fixed deposits.
-
Inflation can reduce real value.
-
Frequent withdrawals may affect interest.
Frequently Asked Questions (FAQs)
1. Which bank in Nigeria pays the highest monthly interest?
As of 2025, Stanbic IBTC’s FlexSave and Fidelity Bank’s Smart Savings are among the top-paying plans, with rates up to 6.8% per annum, paid monthly.
2. Can I withdraw my money anytime?
Yes. Most banks allow flexible access, but frequent withdrawals may reduce your monthly interest rate.
3. What is the minimum deposit to start earning monthly interest?
Most Nigerian banks require a minimum deposit between ₦1,000 and ₦5,000.
4. Are savings accounts safe in Nigeria?
Yes. All licensed banks are insured by the Nigeria Deposit Insurance Corporation (NDIC), which protects your deposits.
5. Can students open monthly interest savings accounts?
Yes. Many banks offer student-friendly accounts like GTCrea8 (GTBank) and AccessMore Youth Account with monthly interest.
6. How is monthly interest calculated?
Monthly interest is calculated based on your average monthly balance and the annual interest rate divided by 12.
7. Can I earn interest if I withdraw frequently?
Some banks require a minimum balance or limited withdrawals to qualify for monthly interest. Always check the terms.
8. Is it better than a fixed deposit?
Monthly savings accounts offer flexibility, but fixed deposits usually have higher interest rates if you can lock your money for several months.
9. Can I open more than one savings account?
Yes. You can open multiple accounts across different banks to diversify your earnings.
10. Do banks pay monthly interest automatically?
Yes. Interest is credited automatically to your account every month, often at the end of each cycle.
Final Thoughts: Start Earning Monthly Income from Your Savings
Saving your money in the right place can make a big difference in your financial life. The best bank savings plans in Nigeria that pay monthly interest help you grow your wealth safely while providing regular income and flexibility.
Whether you’re a salary earner, student, entrepreneur, or retiree, choosing a monthly interest savings plan ensures your money is never idle. Start today by selecting a trusted Nigerian bank that fits your goals — and let your savings work for you every month.