Fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest. You will need to have an existing account with the bank of your choice, and then you deposit the sum you want to fix into this account.
You will then need to inform your bank of your intention to fix the said sum for a given number of days. It is very important that before you make your decision, that you check around for the best rates.
The money to be fixed is removed from your account and the interest is paid into your account monthly. So for example, you want to fix ₦500,000 for 60 days and the bank has offered you an interest rate of 7%. You have ₦550,000 in your account. Once you confirm you’re making the arrangement and sign all the necessary documentation, the ₦500,000 will be removed from your account and be fixed, leaving you with a balance of ₦50,000. After 30 days, you get ₦2,625 interest paid into your account. After another 30 days, you get ₦2,625, again plus your initial ₦500,000
If for example you deposit an amount of 500,000 naira into certain Nigerian banks, we will calculate for you below how much you can expect to make on that deposit within given period of time and we will also compare what the rates are with 6 different Nigerian banks,. Mark you, these are top line banks in Nigeria that many individuals love to do business with.
First Bank of Nigeria
If you deposit 500,000 naira with this bank for fixed deposit, the money will increase by 2.5% after just 30 days of the investment. After 60 days, it would have increased by up to 2.7%. The money will, however increase by 30% after 90 days of the investment.
If you invest 500,000 naira with Stanbic IBTC and you leave it for 30 days in fixed deposit account, the money will appreciate by up to 3% after just 30 days of the investment. The money will also appreciate by 3.25% if you leave it for up to 60 days. However, the money will appreciate by 3.5% if you leave it for up to 90 days.
If you deposit 500,000 naira into fixed deposit, it will yield 3% after 30 days of the investment. If you leave it for up to 60 days, the money will increase by 3.25%. If it is left for 90 days however, the money will yield 3.75%.
If you deposit 500,000 naira into fixed deposit, it will increase by 4% after 30 days of investment. After 60 days, the money will increase by 4.35%. After 90 days however, it will increase by 4.5%.
If you invest 500,000 naira into fixed deposit in GTBank for any length of time, the increase is 4.5%, be it for 30 days, 60 days or 90 days
This bank gives the highest rate. Your investment will increase by 5% after 30 days, 5.25% after 60 days and 5.5% after 90 days.