I Heard Interest Rate On Fixed Savings Account In Nigeria Is High. Is That True? I need to know the lowdown on this. Please enlighten me on this topic.

The highest i ever heard was 16% per annum- First Atlantic Bank but the bank no longer exist. I think the rates varies btw 8-12% per annum depending on duration.

I was told that I can earn just 7% on a fixed deposit account, which is nowhere near the rate of inflation.

actually seun that depends on the bank, the amount you deposit, and the duration of your deposit, more money+longer duration = higher interest rates (usually), plus if you have enough dough you can negotiate better terms. for more info check out some of the bank websites

www.ibtc.com www.gtbplc.com those are the ones i know off the top of my head

So unless you're depositing huge amounts of money, you can't even top the inflation rate, what a ripoff. No wonder so many rich Nigerians take their money abroad.

i will advise instead of depositing on a fixed deposit for 5-year duration and get 12% per annum, depending on the bank. Why not go for stock like Guinness, Taxaco etc., check what your turnover will be after 5 years.

don't be deceived, by the time the bankers do their compounding of the money you intend to deposit; you will discover its not worth a candle. If you like fix 10 million in any bank, you will make more money using that money to sell MTN recharge cards.

selling MTN carsds is not no way way out.

what's our inflation rate?

zebudaya:

what's our inflation rate?

15.6 % in 2005

15.6% sucks so even if you get a 16% deposit you're still not going to make money.

y'all should know that fixed deposits is not a way of making much money, unless you already have a lot of it, you can use it to keep your money from depreciating, but if u really want to make some money, you'll have to take some risks, e.g stock market investment, starting a bizness or something like that before you can expect to make real dough.

Don't know what you do with money anymore, okay,

Breed Ducks or pigeons, no more bird flu, damn, you could be a billionaire before the next elections

Fixed Deposit ma ass. I'd rather buy all the plots closest to the Island and sell them in 5 years, there;s no better deal than that in Nigeria, anyone got better investments then Landed Property - Fix your ass in a bank instead

We all know that fixed deposit is not a way to make money, but when the fixed deposit rate is 7% and inflation rate is 15%, that means that you cannot even prevent your money from depreciating by using fixed deposit accounts.

like i said, it depends on the quantity of money you have, i'm sure there are banks offering better rates than 7%, do your research

Like its bin said earlier,the facts are these:
U dont make much money using a fixed deposit facility
U cant stop ur money from depreciating using fixed dep
U can get some higher % though depending on d amount and tenor
Am aware u can get btw 9%-12% depending on amount invested and tenor.
I dig d idea of Landed property.Its d rave now and am into it,L-I-V-E
Take care.

The interest rates are between 9.5% and 15%.Unless you can fix about 10m and above,the interest gained is not too attractive.

the fixed deposit thing, is not really working

See they say you get 8-10 percent interest per annum which means

your money/100*10/12

I hope i got that right. its close to getting nothing, even if i invest in one peper business or the oda, i ll sure get more than 12% in a year and remember, should incase you have need to withdraw when your money is still fixed, the bank ll charge you and d only advantage is that, it helps you keep your money at that time and instead of paying the bank ur kobo they ll pay you some coin this time!

kellybaba, you can use FIxed deposits to prevent your money from depreciating outside Nigeria.

I was obviously mistaken, because I thought Nigerian banks offered a more attractive rate on Fixed deposit than their American counterparts. With the high rate of inflation back home, then, it probably does not make economic sense, to deposit your money in fixed deposit, because your Naira would depreciate in the long run. Some banks, like WAMU and HSBC are offering rates of 5 and 6%, which actually boosts the value of your money, because inflation in the states generally isnt high, it is around 2-3 percent, for consumer goods.

Still, there are other ways of beating inflation, if you have the money. Mutual funds and the stock market are one of the ways of combating inflation from depreciating the value of your money.

nigerian banks offer far more than the british banks,
that i am very sure off,

i have a fixed deposit in nigeria where i earn 12% interest and my acct with lloyds TSB here in england gives me only 4% on my money.

Tmoni, you have to tie in the inflation rate with the performance of the interest rate. So, while we may be rejoicing that Nigerian banks would pay you 12 percent on your cash, remember, as one member wrote, the inflation rate is about 15 percent, which means that your money is depreciating. On the other hand, if the inflation rate in Britain is less than 4 percent a year, and your funds yields about 4 percent interest, accrued from the bank, then you are better off investing in the UK banks. Remember, it is not how much money you have, but the value of your currency.

@ndipe,

fair enough, stock is getting the jitters now

@Tmoni

You also need to factor in Exchange rate, last November it was around 248 now it is 256, plus there are still some accounts in uk offering 6% and above Barclays currently has 6.5% for their ISA (which is Tax Free). Alliance is offering 12% but you need to open a premier current account.

So UK bank ain't that bad and has the added advantage of being within easy reach (although this is a downside if you are a big spender).

i am going to withdraw my money with that Lloyds Tsb,

the bank of england rate is about 5.25% so hw can a bank give interest at 6-12%, surprising?

I do think there is a limit to how much can be saved, check their website for details.

Tmoni:

the bank of england rate is about 5.25% so hw can a bank give interest at 6-12%, surprising?

R u buvered, just collect the interest jeje.

Which bank in Nigeria did u say is giving you the 12%?

i also have investments in treasury with my stock broker and it hs nt been bad, i do nt even pay tax on it.
if u are really interested, send me a mail and i would send u their addy,

i presume u are in the Uk, they also send daily reports of the stock market to me so its nt been to bad

@tmoni

Yes I have strong ties with the Queen, send to dollypno1@yahoo.com

@Tmoni------------- im interested in the treasury bills thing.

Interest rates do not really reflect the best you can make out of your hard earned money. You could use some of that to buy a computer, hook up to the internet and learn the tricks of the masters who make money daily. As long as what you earn from your deposits does not beat inflation, all is a waste of time. Discover some of these tricks at www.9jasfinest.com Hit me back

Wow Great


Thanks

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