Hello house,
         I put this up to tap from people's personal experiences seeing the fine print of details I seek are not found on     
         websites nor newspaper ads.
         Can anyone let me in on the bank with the most attractive rates on a fixed deposit account of about 8-15 mill?
         I read on a thread yesterday about Fidelity Bank able to offer 12-13% interest.
         Any one knows any 9ja bank with current better rates?   

         Also what financial products e.g. specialized saving accounts, current accounts etc do you know of that gives
         great value for money i.e reduced spurious charges & its ilk,ease of transactions etc.?

         Lastly, which 9ja bank offers you the best domiciliary account deal in your own opinion?
         Please post links to answers if possible.
         Thank you.

Please I'm still awaiting those gurus in the area of financial investment to help out O!
I no dey demo O
I've seen some earlier NL threads

https://www.nairaland.com/nigeria/topic-435850.0.html

https://www.nairaland.com/nigeria/topic-386930.0.html

https://www.nairaland.com/nigeria/topic-4682.0.html

but there are sorta old &not really helpful

I think fixed deposit accounts are a waste of time.  The rates offered are unappealing
If you need a risk-free investment, look at FGN Bonds. See also: How To Invest In Nigerian Bonds.

Seun:

I think fixed deposit accounts are a waste of time. The rates offered are unappealing
If you need a risk-free investment, you should look at FGN

Bonds. See also: How To Invest In Nigerian

Bonds.

@ Seun, thanks I'm opening the DMO page already and currently following the thread on Nigerian bonds from Ugo's blog

repost by you.
Also I saw from prior threads many writing off fixed deposits.
Yes I'm gonna do some bonds business
However, I'm looking at financial equity investment portfolio spread over different products
Any more insights from you or others on that?


[s]It's crazy the educational system never trains nor teaches you financial nor investment
intelligence but financial handout dependence not only in 9ja but globally
Training to be a serf for life
Crazy and weird[/s]

Gone are the days when you think Bond are risk free especially federal government bond but now the reverse is the case judging by how much indebted the government have been and they are still borrowing more.It seems you are not in Nigeria and as a result you are not ready to put your money on any risky investment since you are not around,so is good if you fix your money with one of those rescued banks will give you the highest rate which can be more than 10% for now coz the big four will give you low rates.

Fix your fund and wait till the financial climate is clear or till the time that you know what and what you can do with your money in the real sector that can earn you more money.And if you eventually have interest in Bond just buy it through a bank like Union bank,they will give you a good rate and will issue you a proof and with that you can redeem your bond anytime.For savings account also the best bet is Union Bank and they have along record for that.

Banks can fail, but the Federal Government will always be able to 'print' more naira to pay creditors.

Government bonds are less risky than corporate bonds but that does not mean it is totally risk-free. Argentina defaulted some years back and Greece is on the verge of defaulting, how much more Nigeria. Having said that, you stand to have less problems and headaches investing in Government bonds if you are the risk-averse type of investor!

Now its equities but the next bubble that will burst is bond market, Check out Greece and see what investors are going through trying to cash out but the government has no money and they are telling the investors to wait or loose half of their money, Federal government can default!

@Op,Check discount houses,with that kind of money they can maximise profit for you in fixed income securities with good fixed rate of returns.They seems to be the best with very good products and everything that I have said is from experience.

@ all, thanks for your insights.

@ Seun, seems you must have done some deals gone sour in times paste. I'm thinking the stock market crash must have wiped out some of your equity thus your safe approach by sicking to the bond market.

@ sandra5284, thanks on the insights, I'll include your thoughtful suggestions in working out the best choices to make.

Any other insights from others are desirable& welcome.

If my memory serves me well, Nigerian interest rates on FDs, range 4-5% . Lowest amount, i've seen is 500k.

About, the ROI. I think FD, are the best way to "protect" initial investment. And, dont require large amounts of money or long processes.

You just have to understand "compound interest" to make your deposits any "fun".

Basic - Deposit 1- 5M for 30day @ 4% = 200k - now u have 5.2M
Basic - Deposit 2- 5.2M for 30day @ 4% =208K - now u have 5.48M
Basic - Deposit 3- 5.48M for 30 @ 4% = 216,320 - now u have 5.48 + 216,320

Keep doing the maths and you understand why, warren buffet, bill gates, aliko dangote e.t.c are amongst the richest men in the world.

it has nothing to do with hard work, it simple maths - "the power of compound interest"

@UncleJJ, FD are based on compound interests (if you rollover) but just some clarifications

You just have to understand "compound interest" to make your deposits any "fun".

Basic - Deposit 1- 5M for 30day @ 4% = 200k - now u have 5.2M
Basic - Deposit 2- 5.2M for 30day @ 4% =208K - now u have 5.48M
Basic - Deposit 3- 5.48M for 30 @ 4% = 216,320 - now u have 5.48 + 216,320

the interest is per annum and not 30 days as it might look in ur calculations (maybe that wasnt ur intentions). For the first example, the actual amount u'll get after 30 days on 5M at 4% is 200/12 = N16,666, then you rollover the amount and apply the 4% rule and divide by 12 to get the interest for the following month. You see, FD is not a very attractive investment, and these days its rare to have rates up to 4% for 5M. Most banks would give you btw 2.8-3.5%. Like someone said, FD is just for keeping initial investments.

Grassroot:

@UncleJJ, FD are based on compound interests (if you rollover) but just some clarifications

the interest is per annum and not 30 days as it might look in your calculations (maybe that wasnt your intentions). For the first example, the actual amount u'll get after 30 days on 5M at 4% is 200/12 = N16,666, then you rollover the amount and apply the 4% rule and divide by 12 to get the interest for the following month. You see, FD is not a very attractive investment, and these days its rare to have rates up to 4% for 5M. Most banks would give you btw 2.8-3.5%. Like someone said, FD is just for keeping initial investments.

Exactly, he must have ignored the rolling periods and i also agree with you, it is no longer attractive in Nigeria as i heard but i think there are some other institutions that can give one a very good deal as the lady mentioned above. Having said that, he has a good point, i love the power of compounding! As it is said, it is the best thing that has happened to Finance. It is not surprising that, $1 deposited about 2000 yrs ago at a modest 7% interest rate is worth more than the wealth of all nations put together today(present value). What it means is that time is essential to the power of compounding, you reap more from it when you invest for a longer period of time, little wonder, wealthy individuals(millionaires and billionaires alike) prefer to bequeath wealth to their grandchildren rather than their children. My signature says it all!

@IykeD
well said, its no longer attractive since most persons don't have the patience to wait for the investment to compound. Like @sandra5284 said, discount houses give higher interest rates, but I don't think they are very reliable in Nigeria (my opinion). Don't know if they are covered by NDIC scheme when they go broke (are they?) what we need here is safe investment, right? Bonds and bills are safer (FG and State Bonds, dunno abt private bonds, never tried it).

still waiting for the answers to the @OP's question, what are the interest rates and least charges with Nigerian banks?

Dunno for most banks, GTB offers like 2.8% for 5M (30 days), some months ago it was around 3.25%. I saw an offer of around 4.25% on over 10M for 180 days tenor (abt 5 months ago). so far, that's the best I've seen from them.

@Grassroot, you have a good point there, i also doubt if the firms are all covered in case of default or bankruptcy. How much coupons do the FG and State bonds pay? The rates are very low now i agree, I did reap from some of the banks some 2-3yrs ago when interests were a bit high, at least i did 12% with GTB and 11% with Zenith.

As for the rates, i had a good(well relatively) offer from Finbank last year of about 5% and i invested for about a yr, i actually instructed my contact there to liquidate in July when i heard rumors that CBN were going to withdraw their license or whatever was their plan.
GTB's rates are very low, i think about 2%, quite low if you ask me but it's better than losing the money in some get-rich-quick schemes or all these fake land deals going on.

I also heard that Zenith bank's rates for 500k-1.99m is about 2.5% and 2m-5m, 3% and 3.5% for 5m and above, still very low i think but if Nigeria had good infrastructural development, it is good in a way as it will force people to put their money into production and create jobs rather than lodge the money in the bank but running biz in Nigeria is very costly, though i hope things change for the better soon.

In addition to the question raised by the poster, i would like to know if it will be a wise option a to invest such amount like 5million into AIMS ASSEST MANAGEMENT. I realize that the minimum number of years they keep one's money is 5yrs with 12% compounding interest rate.

IykeD:

@Grassroot, you have a good point there, i also doubt if the firms are all covered in case of default or bankruptcy. How much coupons do the FG and State bonds pay? The rates are very low now i agree, I did reap from some of the banks some 2-3yrs ago when interests were a bit high, at least i did 12% with GTB and 11% with Zenith.

As for the rates, i had a good(well relatively) offer from Finbank last year of about 5% and i invested for about a yr, i actually instructed my contact there to liquidate in July when i heard rumors that CBN were going to withdraw their license or whatever was their plan.
GTB's rates are very low, i think about 2%, quite low if you ask me but it's better than losing the money in some get-rich-quick schemes or all these fake land deals going on.

I also heard that Zenith bank's rates for 500k-1.99m is about 2.5% and 2m-5m, 3% and 3.5% for 5m and above, still very low i think but if Nigeria had good infrastructural development, it is good in a way as it will force people to put their money into production and create jobs rather than lodge the money in the bank but running biz in Nigeria is very costly, though i hope things change for the better soon.

@iykeD, Thanks for your contribution, but what i am not cleared with in your post is the time frame for this rates u quoted. 30day, 180 day or 1year. Pls do clarify. Thanks.

@Grassroot,Discount houses are very reliable because just 4 or 5 are licenced by the Central Bank to operate and most of the big four banks owns the discount houses.But if you have from 5Million upward they will give you better rate,e.g kakawa discount house owned by first bank,cdl and few other ones.If you want to fix your money,just dont fix it with the big four as in UBA,ZENITH,GTB and First Bank but try other banks.For 5M they will give you 10% per annum.A friend of mine deposited 4.5M and they give her 88k every 3month which is about 8.something per annum.The rates are still better in Nigeria but with the kind of money Op has,I advice you should try the discount houses and you will make more money and your investment is very secure with them.They are also very liquid because they specialise on bulk trading/investment of fixed income securities.

I say it again,the next bubble or crisis that will happen will be in Bond because the federal government is indebted too much money to local investor than external borrowing.You shouldnt rely so much on the guarrantee of any irresponsible government.

Diamond bank has a high yield deposit account. The interest rates are like 4.5% pa for 5million. U can withdraw ur money anytime, u can operate the account as a normal savings account (without a withdrawal book). There are other rates for lower and higher amounts. It is called HYDA account.

@IykeD, thanks for the info. For FG bonds, not sure about the current coupons, but someone gave this

I just bought #10m worth of FGN Bond maturing in 2016 with 11.49 yearly interest. Every 6 months I get a cheque of #574,500.

recently on https://www.nairaland.com/nigeria/topic-768325.32.html. Not a bad bargain, I think.


@sandra5284

For 5M they will give you 10% per annum.A friend of mine deposited 4.5M and they give her 88k every 3month which is about 8

I guess u were refering to kakawa discount house (or other smaller banks?). This is really good info, best I've seen on deposits lately. Please could you tell us more? I'm interested. Thanks.

Sandra, about bonds, though the govt may be irresponsible in indebtedness,  I think the current outlook suggests that it is still a safe investment in Nigeria. They can always print money to pay their local creditors, its just going to have adverse effects on the economy (high inflation rates, value of naira suffering, etc), but the investor's fund will be safe (even if it wont have the same/better value in the long run).

Access Bank's rates are mouth watering. I SWEAR i just checked it out,
http://www.accessbankplc.com/pages/Page.aspx?Value=135&ln=Gy7UlI4cSJE94Wa2qudbFQ%3d%3d

As for 10% and above you should check one of the discount houses for 5M upward they will attend to you.As for the 8.5% my friend bank with one of the recapitalised banks and once the MPC Rate increase,they increase her rate.The secret about FD is that most banks take advantage of the ignorance of Nigerians and they impose their own rate on them while the staff that will secure the deposit will make profit on you.This is what has been going on,my friend deposit was yielding like 36k on 4.5M every 90days before even when the CBN rate was 6% but one day I advice her to contact the head office and discuss a new rate.Eventually they start applying the CBN rate and they even sacked the girl that was incharge of her transaction previously and another person was appointed.

You dont need to go to bank to shout or ask them anything,just hide behind the computer and ask them anything you want from their head office and they will offer you a better deal.I did most of my transaction online since am not in Nigeria and it was all good,I think they respect things that way and they are afraid to mis-inform you since they wont be able to access you physically.

ogrin:

Access Bank's rates are mouth watering. I SWEAR i just checked it out,
http://www.accessbankplc.com/pages/Page.aspx?Value=135&ln=Gy7UlI4cSJE94Wa2qudbFQ%3d%3d

I dont see what is "mouth watering" here. Am I missing something? with respect to the capital level discussed here, I see 2.25 - 2.50% for 30 days, 2.50 - 2.75% for 60 days, and 2.75 - 3.00% for 90 days. It doesn't seem to be better than the rates from the top banks.

@sandra5284, thanks for the tips

first check the rating of FGN bonds by international rating agencies to know the likehood of default.b/cos with our political climate and also our security issues i feel that it will be a big risk.just check out our rating

ogrin:

@iykeD, Thanks for your contribution, but what i am not cleared with in your post is the time frame for this rates u quoted. 30day, 180 day or 1year. Pls do clarify. Thanks.

@ogrin, sorry it's 30day-rate.
@Grassroot, 11.49 is a good deal really, i wish i had such money at hand right now Nice one! Do those guys handle online transactions, i have a guy who may like to make such an investment, please let me know.

Try a CBN registered microfinance bank. I currently fixed .5m with one for over a yr now @ abt 10% pa @ the end of evry mth I get abt N5208, so with ur money, you can get a better rate. I fixed it wit GTB in 2009 at 10% but around dec 2009 or early 2010, they lowered their rate to abt 2.5%. That was when I changed to a microfinance bank. I think the key is, ur money I'd needed in microfinance banks than in commercial banks. Anytime I go to the bank am highly respected unlike when I m wit GTB.

thuao:

Try a CBN registered microfinance bank. I currently fixed .5m with one for over a yr now @ abt 10% pa @ the end of evry mth I get abt N5208, so with your money, you can get a better rate. I fixed it wit GTB in 2009 at 10% but around dec 2009 or early 2010, they lowered their rate to abt 2.5%. That was when I changed to a microfinance bank. I think the key is, your money I'd needed in microfinance banks than in commercial banks. Anytime I go to the bank am highly respected unlike when I m wit GTB. 

I like the highlighted part . Bro, the thing here is risk- in investment, the higher the risk, the higher the return. While it may not be always true but there's a very high probability that it will always follow that pattern. It's riskier investing your money in those micro-finance banks than the known commercial banks, so they will like to keep you attracted with the higher rate. Enjoy your rates but please keep your ears and eyes to the ground, have a trusted insider and lest i forget, enjoy your kingship too i hope they serve you some coffee whenever you come around

hbrednic:

initial capital + interest rate - inflation = real value
fixed deposit in naija is a NO,NO. unless for capital preservation.

I agree 100%. The interest rate fluctuation is too bad even.
Only people who don't know what to do with their money immediately put it in fixed deposits. It's no investment.

AjanleKoko:

I agree 100%. The interest rate fluctuation is too bad even.
Only people who don't know what to do with their money immediately put it in fixed deposits. It's no investment.

hmm, our Oga is here! Yes sir, inflation may be too high and rates very low but it's better than loosing the money, so as you said, it's good for people who are not on ground to monitor their money put in other forms of investments which go into stories more often than not!

@ all, thanks for all the insights.
I'll try add my own comments too on as many posts I've seen here as much as possible.
Keep it coming even from those reading & yet to contribute to the thread.
I no be Oliver Twist
Only that you take better decisions when you have quality insights.
And I've gotten many here.

In no particular order,
@ Sandra, U R a gem of information.
Was thinking about the Kakawas of this world b4
Definitely will look into them.

@ ogrin,
those rates low O!
Way I figure,I get between 300-325 k for 30 days,325-350k for 60 days and 350-400k for 90 days if I give 'em about 10.5 milli.
The extra 500k is to beat their rates [2.25 - 2.50% for 30 days, 2.50 - 2.75% for 60 days, and 2.75 - 3.00% for 90 days] quoted for 1-10 milli so graciously pointed out by Grassroot.
And from what I've seen, those rates have the tendencies to fluctuate mostly heading south [dropping that is].

@ thuao, microfinance is a no no.
If banks like Intercontinental ,Union and Oceanic could default on their obligations due been spurious, how much more micro-finance banks?
I recall many of them failed Central Banks due diligence tests about some time back with 1 of the failed 1's [if I recall correctly] been headed by Doyin Abiola[MKO's former wife who seemingly is a person of integrity]
Although that rate is tempting& I believe they are better regulated now, 1 can fix under 1 milli take do chop money and get that swollen headed big man feeling when I go the bank
That's if my calculating head can permit my desire for pride and vanity sha