Despite numerous financial literacy campaigns and digital banking advancements, Ghana’s national savings rate remains stagnant at just 5%. This figure not only raises red flags about the effectiveness of current financial incentives but also sparks deeper concerns about whether the economic system genuinely encourages citizens to build long-term financial resilience. If saving continues to feel unrewarding—or worse, punishing—then it’s time to rethink how we structure interest rates, tax policies, and banking accessibility for the average Ghanaian
Ghana’s savings deposit rate has remained stagnant at 5% for over a year, discouraging savings, widening bank profit margins, and limiting affordable credit access for the private sector, threatening long-term economic growth and inclusion.
The savings deposit rate in Ghana has been stuck at 5% for at least over a year, a trend that is raising red flags about incentives to save more in the country.
This stagnated savings is also seen to have implications for the operations of commercial banks and credit to the private sector, which is regarded as an “engine of economic growth”.
The Savings Deposit Rate is the interest rate paid on savings accounts, where funds are meant to be saved for a longer period. This contrasted with the Demand Deposit Rate, which is the interest rate paid by a bank on demand deposit accounts, such as checking accounts. These accounts allow customers to withdraw funds at any time without notice.
According to the latest Summary of Economic and Financial Data published by the Bank of Ghana, the interest rate on savings deposits has not budged from the 5% mark since at least March 2024.
For over a year, the interest Ghanaians have been earning on their savings has hovered around just 5%.
This is despite sharp fluctuations in the central bank’s monetary policy rate (MPR), which has hovered around 27-30% during the same period.
This stagnation in the savings rate has the potential to undermine public confidence in the value of long-term deposits and could discourage domestic savings. This is because there are no real returns for the funds kept at the bank, hence becoming a disincentive for Ghanaians to save more.
This situation, which can degenerate to lower savings, has key implications for the banks and the private sector growth. The savings are the key source of affordable capital for banks to support lending, especially to small businesses.
With high inflation and policy rates but the savings rate staying flat sends a strong signal that banks are just prioritizing deposit mobilization from individuals without offering them realistic returns.
It is just a matter of time before people begin to ask, “What’s the point in saving?”
Ironically, while savings deposit rates remain stagnant, the gap between what banks pay depositors and what they charge borrowers continues to widen.
The average lending rate stood at about 30% in March 2025, which is about six times the savings rate. That massive spread translates into windfall profits for banks but adds significant borrowing costs to private enterprises struggling to scale, invest, and create jobs.
This trend further reinforces the perception that the financial system is more geared toward profitability than supporting inclusive growth.
The situation of reluctance of the bank to raise the savings deposit rate partly stems from the limited options for investment by depositors.
Economists and analysts are calling for more competition in the banking sector and for innovative financial products that offer better returns for savers.
Policy analysts also suggest that regulators should do more to encourage financial inclusion and transparency in how banks set their deposit and lending rates.
In a country where informal savings, from susu boxes to under-the-bed storage, still dominate, a persistently stagnant savings deposit rate could erode trust in the formal financial system as an avenue for savings.
Is it worth saving anymore? A positive answer to this question will be determined by how the authorities make sure savings attract realistic returns. But for now, it is not.
Last Updated on April 20, 2025 by samboadu
