One of the most familiar ways to dispose of the banana scraps is to compost. Decayed vegetable wastes are really the best natural fertilizer for your growing plants and vegetables. Banana peels are rich in the nutrition that your plants crave! The other way to make a banana-peel-fertilizer is to dry them in the sun. Grind the dried-peel or just add it directly into the soil, giving the plants a natural boost.