Fixed Deposit Interest Rates in Nigeria – In one of our blogs we discussed Savings Account and current account in Nigeria.

Although these two are fundamentals of account knowledge in Nigeria; they still serve a lesser purpose without the knowledge of Fixed Deposit accounts in Nigeria.

To help with a better understanding of the above topic, we will be discussing the following:

  1. What is fixed deposit account in Nigeria?
  2. Fixed deposit interest rates in Nigeria 2019 / Fixed deposit interest rates in Nigeria 2018
  3. Benefits of fixed deposit account in Nigeria
  4. Conclusion
Fixed Deposit Interest Rates in Nigeria

What is fixed deposit account in Nigeria?

Fixed deposit account in Nigeria is a loan deposit account in which a customer deposits, gives or loans a certain amount of his or her money known as Principal to the Bank for a certain period or Tenor known as time at a certain rate.

At the end of each tenure interest will be paid on the fixed deposit into the customer’s account. There are situations where both interest and principal are rolled over.

This is also the reason why fixed deposit is also called Term Deposit.

The above narrative about fixed deposit account in Nigeria is valid for all fixed deposit account in Nigeria. This now takes us to the nest on the line which is:

Fixed deposit interest rates in Nigeria 2019 / Fixed deposit interest rates in Nigeria 2018

This is one of the major determining factors of how large or small interest on fixed deposit will be on maturity.

It is a fluctuating factor which depends on prevailing market position and condition for its determination and application.

For instance the fixed deposit interest rates in Nigeria 2019 and Fixed deposit interest rates in Nigeria 2018 are not the same. This can also be addressed as fixed deposit interest rate in Nigeria 2018

Same is also applicable for GTBank fixed deposit interest rate 2018 Nigeria and first bank fixed deposit interest rate in Nigeria

Fixed deposit account interest rate in Nigeria is also negotiable. There are situations where rates that are higher than what is obtainable in the bank’s rate guide are given to customers.

For such higher rates interest rate on fixed deposit account in Nigeria to be given, approvals must be secured from the bank’s approval authority.

Finally Nigeria fixed deposit interest rate (Nigeria banks fixed deposit interest rate) are very competitive.

This is because no matter how low or high rates can be, banks can bend their policy to give reasonable rates that will always keep one banking with them.

You can always visit your bank to know what their rate guide says concerning that fixed deposit you are considering right now.

How does a fixed deposit account work?

Do you want to open a fixed deposit account in a bank? Be assured that you can open it either as a customer or non-customer. This section will guide you on how to open a fixed deposit account.

As a Customer:

Please visit your bank and do the following:

  1. Make your request to book a fixed deposit in writing by either filling a form or writing a letter to book a certain amount known as the principal. Ensure you state the tenure you want the fixed deposit to run.
  2. Fund your account with the amount you want to book
  3. Ensure that you negotiated a good rate. This will help you get more revenue.
  4. Submit same to your bank who will debit your account and credit your fixed deposit account with the value.
  5. With this your fixed deposit will run as requested.

As a non-Customer:

Please visit your bank and do the following:

  1. Make your request to book a fixed deposit in writing by either filling a form or writing a letter to book a certain amount known as the principal as a non-customer. Ensure you state the tenure you want the fixed deposit to run.
  2. Provide necessary KYC documentations like valid ID card, Utility Bill and Passport photograph
  3. Ensure that you negotiated a good rate. This will help you get more revenue.
  4. Submit same to your bank who will debit your account and credit your fixed deposit account with the value.
  5. With this your fixed deposit will run as requested.

Benefits of fixed deposit account in NigeriaFixed deposit account advantages and disadvantages

You might be wondering or asking yourself this question what are the disadvantages of fixed deposit?

The following are considered as disadvantages:

  1. Usually small interest revenue return compared to what trading with such money will give under normal circumstances.
  2. Long tying of money to the terms and condition of the deposit even when you got what you need to do with the money. If you force a termination then you must loose part of your interest.

The following are considered as advantages:

  1. It yield higher interest than savings account
  2. It is secured.
  3. It provide returns for people with low business sense

Conclusion:

Fixed deposit account is a good way to raise huge returns for big principal. An investment of about N400m for a rate of 8% and a tenure of 3 months will return about N40m interest revenue yield.

That’s a huge return in deep. Why not read:  Current Account in Nigeria for more understanding.

For Policies on Fixed deposit account, please visit Central bank of Nigeria website www.cbn.gov.ng

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