The Fixed Deposit Plan is made for the individual or corporate customer who is looking to earn interest on money invested than a regular savings account, until the given maturity date. With a minimum opening balance of N100,000, this account allows you to determine the tenor of investment at an agreed interest rate.
For some banks in Nigeria, this kind of investment may or may not require the creation of a separate account. For instance, First Bank Zenith bank and some other banks have their separate account called “Fix Deposit Account“. Of course, Fixed Deposit is considered to be very safe investments.
This page concentrated on listing banks in Nigeria and their fixed deposit interest rate, and how to calculate the interest rate. Including having knowledge on how to terminate/cancel a fixed account.
What Is A Fixed Deposit?
A fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest. In other words, this an amount of money you know won’t be using for a preriod of time to yaid you a monthly interest for as long as you want it.
How to Apply for A Fixed Deposit in Nigeria Banks
STEP 1. Open An Account or Have an Existing Account
After going through the “Current Fixed Deposit Interest Rates in Nigeria Banks” and make your choices on which institutions to work with, you can then proceed to any branch in your locality to open an account (that is if you don’t have one). A fixed deposit may or may not have specific kind of account, it all depends on the bank you are investing your money. If you are required to open an account, the requirements for opening such account is still as normal account opening (Utility bill, ID card, Passport, and your money)
You get your interest paid into the account. But before then, the same account you have to deposit the sum into it for the bank to be able to change for the amount you agreed to fix.
STEP 2. Inform Your Bank About Your Interest to Fix You Money
You have to let the bank know what you plan doing with the money in your account. And it just doesn’t end by saying with your mouth, there has to be a written document by you applying for fixed deposit with the so-so amount of money and for so so the period of time. Without this properly done the Bank can’t just carry actions.
So, You will then need to inform your bank of your intention to “fix” the said sum for “X” number of days. It is very important that before you make your decision, that you shop around for the best rates. You are not obliged to fix your money with your existing bank, just because you bank with them. You can earn a significantly higher amount by just picking up the phone.
STEP 3. Now Your Fixed Deposit Is Live
Once your application is accepted, your fixed starts. First, you will notice that the money you want to fix is removed from your account.
STEP 4. You Get Your Interest Paid
This is the moment the interest is paid into your account monthly as agreed with the banks’ interest rate terms.
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Current Fixed Deposit Interest Rates in Nigeria Banks
It is very important to go through the listed banks and their FD interest rate before you conclude on which bank to work with. You should know, that it’s not a must to fix your money with an existing bank you operate with. That is why you check the interest and see which one fevours you better.
|S/N||NAME OF BANK||Demand Deposit||Savings Deposit||Time Deposit|
|Ave. Int Rate||Ave. Int Rate||Ave. Int Rate|
|2||Citi Bank Nigeria||3.20||4.20||7.50|
|3||Coronation Merchant Bank||–||–||12.66|
|8||First Bank of Nigeria||0.00||4.20||7.50|
|9||FBN Merchant Bank||–||–||10.03|
|10||FSDH Merchant Bank||–||–||10.50|
|11||Guaranty Trust Bank||3.11||4.20||7.41|
|13||Keystone Bank Ltd||0.42||4.20||13.93|
|14||Nova Merchant Bank||–||–||10.40|
|16||Rand Merchant Bank Nig. Ltd||5.00||0.00||13.23|
|18||Stanbic IBTC Bank||0.63||4.20||7.91|
|19||Standard Chartered Bank||0.00||4.22||7.50|
|23||United Bank for Africa||0.08||4.20||10.99|
How To Calculated Fixed Deposit Interest Rate in Nigeria
So, for example, you want to fix N500,000 for 60 days and the bank has offered you an interest rate of 7%. You have N550,000 in your account. Once you confirm you’re making the arrangement and sign all the necessary documentation, the N500,000 “disappears” from your account to be “fixed”, now you can calculate how much to be your monthly interest using the steps below;
- Multiply the interest rate by your fixed amount. In the example above, 7% x N500,000 = N35,000.
- Divide the result by 12 months: (N35,000/12 months) to get your monthly payments (N2,916).
- Subtract 10% tax: N2,916 – N292 = N2,624 payable monthly
How To Cancel Your Fixed Deposit Plan
Despite the fact that the money disappeared from your account when you fixed the money doesn’t mean the money isn’t yours. You will get your many anytime you want it. But there is a step to take to achieve that.
If you want to cancel your FD plan in any bank. You also have to;
- Work to the bank
- Tell them (also in writing) that you want to cancel your fixed deposit plan for so-so date and month.
- And once the management in charge reads it, they approve and fix the cancellation to that date you applied for.
Please note that;
⇒ For some banks, You can’t apply for fixed deposit and to cancel the same month it was approved.
⇒ Also note that some banks request that you have given about 1month or 2month up-front notification for the cancellation of your FD plan. Whereas some other banks Amount can be terminated at your (customer’s) discretion.
⇒ Investment period (tenor) is a minimum of 30 days and a maximum of 360 days. But you can decide to extend after the period.
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