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Nairaland Forum / Nairaland / General / Investment / This Is Bad News For Fixed Deposit Holder (87885 Views)
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Re: This Is Bad News For Fixed Deposit Holder by Bj5all(m): 9:38am On Oct 19, 2015 |
omonnakoda: pure water business even if you dont want to start with producing can water is still expensive. 2 million naira wont take you anywhere except you want to rent a building and just buy the machines and start production. you still have to register with NAFDAC and CAC. i am about to start one and my budget is around 7 million but in my own case i will buy my land and build factory. |
Re: This Is Bad News For Fixed Deposit Holder by SOJOSEPH(m): 9:39am On Oct 19, 2015 |
That is the good effect of TSA. Public Sector funds are better managed so as not to flood the economy and lead to inflation. This is a good development as the cost of doing business will go down. Funds should be channeled into productive activities by individual than locking the economic resources into short term deposit. This funds should be channeled to the real sector and discourage making the commercial bank growing fat at the detriment if the poor unemployed youths. |
Re: This Is Bad News For Fixed Deposit Holder by omonnakoda: 10:18am On Oct 19, 2015 |
sonssyo:Did you actually believe serious and sensible people will come to Nairaland for advice on what to do with their money? Truly you lack sense |
Re: This Is Bad News For Fixed Deposit Holder by OversightTM(m): 11:50am On Oct 19, 2015 |
omonnakoda:Investing in manufacturing is a two-way thing; you either start up a manufacturing firm of your own, having considered cost implications and future returns of the specific line of business or you plough your funds into an already existing manufacturing firm with prospects. Someone made mention of investing in Dangote cement, 2million naira worth of shares isn't a bad idea... |
Re: This Is Bad News For Fixed Deposit Holder by sammysammy111(m): 12:03pm On Oct 19, 2015 |
my brother thank u for this information cos am collecting my contribution next week I wanted to go and do fix deposit but let me wait till I confirm if the interest rate is dat small (2%) |
Re: This Is Bad News For Fixed Deposit Holder by October1960: 12:04pm On Oct 19, 2015 |
In a country like Nigeria with fraudulent imbalance in wealth what percentage of the population can legitimately invest in treasury funds with money they saved from their salary? Stolen monies have skewed this economy for such a long time. Hopefully successive government will make a start in righting the many wrongs of the past. Angelstartups: |
Re: This Is Bad News For Fixed Deposit Holder by October1960: 12:09pm On Oct 19, 2015 |
sonssyo: Nope. In a true economy money from fixed deposits are part of the capital to make loans for manufacturers. Putting money in a fixed deposit is not laziness. |
Re: This Is Bad News For Fixed Deposit Holder by yomi007k(m): 12:12pm On Oct 19, 2015 |
David0: So banks play fast one on people like that. No more Love. |
Re: This Is Bad News For Fixed Deposit Holder by rubi96(f): 12:18pm On Oct 19, 2015 |
and i had plans of fixing at the end of this month? |
Re: This Is Bad News For Fixed Deposit Holder by sonssyo(f): 12:54pm On Oct 19, 2015 |
October1960: d banking industry industry(commercial banks) have refused to play their role in a real economy,fixed deposits are heavy liability to banks, an bank that's is about to become insolvent will not like to go for fixed deposits rather they will prefer CASA account,current account and savings of which the interest payable are very low ie if there is going to be interest at all,most nigerian's withdraw more than three times in a month which now forfeits interest payable. they keep taking charged,debit and credit alert and bank to bank charges,they smile at this because their profit keep increasing. they keep putting up ATM everywhere, that's income for u. research shows that 85% of Nigerians are unbanked, they should get funds from the grassroot and funds will never be a problem. go to first bank they will price 3% on 1m but if u take d same 1m to unity they can even give u 6%or 7%.forget banks 1 Like 1 Share |
Re: This Is Bad News For Fixed Deposit Holder by David0(m): 12:56pm On Oct 19, 2015 |
yomi007k: Its not about playing fast one, its more about doing business. U dont expect the bank to give u the whole deposit interest rate frm cbn, they must make something from safe keeping the money as well. Thats y thrs room for negotiation when it comes to fix deposit. 2 Likes |
Re: This Is Bad News For Fixed Deposit Holder by amparas(m): 1:27pm On Oct 19, 2015 |
Let's see HW this will affect the future |
Re: This Is Bad News For Fixed Deposit Holder by yomi007k(m): 1:37pm On Oct 19, 2015 |
David0:Aii tnx Never really been an FD fan from d start. 1 Like |
Re: This Is Bad News For Fixed Deposit Holder by Omotakins(m): 4:54pm On Oct 19, 2015 |
this can't be true! if CBN came up with this policy with a view to increasing investments in real sector, it is still not a win situation. This has a chain reaction as it discourages savings and, by implication, reduces banks' lending power. this reduces ability to access loan for investment purpose. Even at that, what economic framework is on ground to encourage investment? |
Re: This Is Bad News For Fixed Deposit Holder by jephito(m): 5:59pm On Oct 19, 2015 |
My less than 1m naira fixed deposit is at 7% interest rate. Should this information holds water, will it affect my savings? |
Re: This Is Bad News For Fixed Deposit Holder by walexy14(m): 7:39pm On Oct 19, 2015 |
@Op this information is not true........Contact me if you need to do FD with your amount and tenor, I work with a Financial institution on the main land that is CBN licence,existing for over twenty four years and offers good interest rate that's far better than banks. |
Re: This Is Bad News For Fixed Deposit Holder by Dexpro: 9:01pm On Oct 19, 2015 |
Opps. Sowie..... Did not check really. malonephill: 1 Like |
Re: This Is Bad News For Fixed Deposit Holder by mamamama2(f): 12:53am On Oct 20, 2015 |
[ Thank you, my brother. I'm surprised nobody as noticed this. Interest for 30 days cannot be more than for 60days. quote author=okitikpo post=39123095]But something is definitely not adding up in what the OP put up there. How can interest rate for 30 days be higher than 60 days. OP are you sure you got the proper gist! [/quote] |
Re: This Is Bad News For Fixed Deposit Holder by dantti2006(m): 6:03am On Oct 20, 2015 |
bodashee: Sorry wrong choice of word. I actually meant to say one of the top banks in Nigeria. And people should stop exhibiting their ignorance on financial matters. Interest rates for commercial banks are guided by the mpr. Last time I checked mpr was @ 15. In macroeconomics u increase mpr 2 draw excess cash outta circulation to stall inflation. CBN's drastic measures lately have looked harsh because we have no finance minister to balance the equation with a well thought out fiscal policy. Those claiming to have gotten interest rates as low as 1 to 3 percent should indicate the bank in question, let's know if it's a commercial bank or a microfinance bank. Please let's not pass misleading information here that harms the public image of the banking sector at large. And lastly do a proper research on Marco economics and how it affects banks before coming to make baseless assumptions here. Even normal saving account in banks attract an interest rate of 2 percent per annum. Lastly it's worthy of note that all interest rates whether for deposit or loans are per annum except when it's compounded for sake of customer but if I tell you 10 percent it's actually 10 percent per annum. We can use compund interest to give you an exact figure of what your earning on that 10 percent will amount to in let's say 30, 60 or 90 days. |
Re: This Is Bad News For Fixed Deposit Holder by Nobody: 7:22am On Oct 20, 2015 |
dantti2006: Boss, Thank you jare for ur crystal clear clarifications...you would really make a good lecturer! |
Re: This Is Bad News For Fixed Deposit Holder by manie(m): 11:19am On Oct 20, 2015 |
Bj5all:The news is real, I was at FBN Airport road for treasury bill. My account officer gave me between 9% and 10% when i asked for the rate on Fixed Deposit........ I was told 2%. This happened less than 24 hours ago. 2 Likes |
Re: This Is Bad News For Fixed Deposit Holder by charlsecy(m): 12:29pm On Oct 20, 2015 |
Bj5all:Something must be wrong with the words in bold. |
Re: This Is Bad News For Fixed Deposit Holder by akintun: 11:19pm On Oct 20, 2015 |
Those rates I read are very good rates. 2.5% interest per month. The rates can't be dat high |
Re: This Is Bad News For Fixed Deposit Holder by Bj5all(m): 7:27am On Oct 21, 2015 |
dantti2006:U have spoken well but ur statement lacks confirmation. Go to FBN, any branch close to u and check out things for urself. |
Re: This Is Bad News For Fixed Deposit Holder by Bj5all(m): 7:31am On Oct 21, 2015 |
charlsecy:There are banks everywhere, go and confirm for urself. Go to the marketing department in any bank and ask for their current fixed deposit rate |
Re: This Is Bad News For Fixed Deposit Holder by charlsecy(m): 1:54pm On Oct 21, 2015 |
Bj5all:2.5% for 30 days and 2% for 60 days? More attractive to fix for 30 days.... A kind of counterintuitive. 1 Like |
Re: This Is Bad News For Fixed Deposit Holder by Nichobabe(m): 3:01pm On Oct 21, 2015 |
saintneo: Please can you explain 4 and 5 further Thanks 2 Likes |
Re: This Is Bad News For Fixed Deposit Holder by deucelaw: 3:07pm On Oct 21, 2015 |
You are correct...For those that wants to invest in Fixed income or bonds, I work with an investment bank and we have lots of funds locked in already, This implies that you can still get a marginal rate between 8 - 14% depending on the volume. You may contact me if you are interested. 08021022255 or tajayi@cowryasset.com Angelstartups: |
Re: This Is Bad News For Fixed Deposit Holder by saintneo(m): 5:36pm On Oct 21, 2015 |
Nichobabe: Ways Banks(bank branches) make money 1. Interests on deposit 2. Interests on loans(branches hardly do deals, most deals are done at the top; thus most branch manager rely on pool-interest rate on deposits) 3. Charge on transactions 4. Service charges 5. Foreign exchange, form A, form M etc Let's take an example Bank X has 200 branches in Nigeria. The pool-interest rate for Bank X is 8%. If Branch Y located in Apapa maintains current accounts with deposits of about average of 600million annually, Branch Y will make 48million for the year based on current accounts deposits only. ... this is pretty 'easy' because they will get this deposits using their (3-to-6)marketers that they will pay 3 million on the average per year. to each marketer. On the other hand, if Branch Y is to chase deals, the loans could go bad if business fails, the loanee bolts away or dies. This could lead to employee termination. This is very challenging, branch managers will prefer the easy way....deposits. Now consider if the deposit rate is low, Branch Y will seek other means to generate revenue or reduce cost by sacking its staff. Consequently, Branch Y will seek genuine entreprenuers with great ideas to support in developing their businesses and earn profit for its services to the entreprenuer. |
Re: This Is Bad News For Fixed Deposit Holder by Nichobabe(m): 9:18am On Oct 22, 2015 |
saintneo: Thanks. You must be a banker. Well explained |
Re: This Is Bad News For Fixed Deposit Holder by saintneo(m): 12:45pm On Oct 22, 2015 |
Nichobabe:I was. BTW, in my explanations i wrote 'pull-interest rate', the correct term is 'pool-interest rate'. |
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