uboma:


For how long did you invest your 1 million naira on FD Sir?

12months

The N35,000 is for one year, not 60 days. Secondly, a 10% tax is deducted from your interest and you finally get N31,500 in the 365-day period.

After all i lost, i wouldn't go near equities again.

emperoracro:
I don't know how anyone in his right mind will go and fix a sum of money below #1M as fixed deposit, when there are several other ways of increasing ur money. FD pays very low interest. On 500k, u will get less dan 6K for 2months, wen one can get over 70k investing in other tins. Treasury bill is better,but still no worth it to me, and Equity is quite risky cos most Nigerian company are shrouded in secrecy.

Other ways like?

duni04:

Funny u mentioned 2008 cos after the burst that year, many people bought equities at record lows and turned into overnight billionairs from 2009 to 2011, while people like you were screaming that venturing into the stock market would lead to suicide.

Turned into overnight billionaires, huh? LOL. You sure have a talent for hyperbole. The equities market that I personally remember post-2008/9 is one in which several players became very shy and moved whatever was left of their huge losses into other asset classes such that as late as 2012 or so the House of Reps was still lamenting about the non-recovery of the stock market while blaming SEC for not doing enough. Now, to make matters worse, all alleged paper billionaires have again seen their imaginary gains erased these past few months that there are now serious talks in credible circles of another imminent stock market crash. As they say in the equities market these days, those who have cash are king. And so apt, that.

naijacutee:
Last month, I happened upon some money from an old investment which had matured. Rather than have it collect “one one naira” in my standard savings account, I decided not to be the fly that follows the corpse to the grave, and put it in a fixed deposit. Fixed deposits are a very popular investment option in Nigeria, and you’ll hear about them 8 times of out 10 if you do happen to ask for advice regarding how to invest money. The attraction to this sort of investment is that returns are guaranteed, and the duration of your investment is flexible. We probably like this sort of investment because they help us mitigate risks – in a country where nothing is guaranteed, we don’t tend to tie money down in long term investments and fixed deposits are the perfect solution to this investment problem. In the course of my search for a decent return on my investment, I “burnt” at least N5,000 in credit, calling banks and waiting in queues for information, and was only able to reasonably compare two banks – GTBank and First Bank.

What is a fixed deposit?
A fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest.
How to put your money in a fixed deposit: You will need to have an existing account with the bank of your choice, and then you deposit the sum into this account. 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. It is the more difficult route when you consider call waiting times, credit spent etc but it is worth it, and what’s more I have done some of this hard work for you.

How long is my money fixed for?
Most banks offer flexible periods of 30 days, 60 days, 90 days, 180 days and one year.

How do I get paid?
Usually, the money is removed from your account and the interest is paid into your account. 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”. At the end of 60 days, you get paid back your original N500,000 an additional N35,000 interest accrued. A simplified version of what really happens behind the scenes is that the N500,000 is given to another customer who has asked for a loan – but he will be charged 20% interest (or N100,000). After 60 days, you get back your N500,000 N35,000 (7% interest from the other customers N100,000). Not bad business for banks, if you ask me.

Bank interest rate comparisons
For my enquiries, I called First Bank and GTBank.
I rated both banks on customer service quality (pet peeve of mine, because time is money) and interest rates.
tbankvsfirstbank

Interest rates
First Bank
7 days (First bank does not offer this service)
30 days – 9.25%
60 days: 9.50%
90 days: 9.75%
365 days: 10%
GTBank
Available from N100,000 to N1m.
7 days – 3.75%
30 days – 180 days : 6.25%
Some notes:
Call times. My initial contact with both banks was on a Friday afternoon, at about 5.30pm. My second contact attempt with GTBank after the first one proved futile was at 3.20pm on a Sunday.
Omissions. I initially wanted to include Accessbank in this exercise, but have been unlucky in getting through to a knowledgeable person on customer service. The frontline staff I have spoken to, all seem to lack basic knowledge regarding what services their banks offer and where to get information outside the limits of their knowledge. I would recommend that training is provided for all front line staff as a matter of urgency, as customers otherwise have no way of getting informed about competitive rates for your most lucrative services.
Am I an agent? I work for neither of these banks. My selection of this two is purely by chance and accessibility of contact information via the bank websites. I simply picked the banks with the most prominent contact information via websites. My reviews are unbiased, and if I haven’t reviewed any others yet, don’t worry – “life is turn by turn”.

Courtesy: http://www.mrpepe.com/banking/which-is-the-best-account-for-a-fixed-deposit-gtbank-or-firstbank/

thanks a lot sir for d info. So if i shuld av 300k n want to fix deposit it wit my bank(gtb), al i av to do is to visit d bank n discuss d issue wit an enlightened management staff?? What interest wuld i get if i fix deposit 300k for two months ?

Franky9584:
If u say Gtbank z more of reatail banking, wot would u say abt Access,uba n co?

The comparison was between FirstBank and GTB,that's why I mentioned only GTB..its not a bad thing to be focused on retail banking, I love GTB services, the Gtpay, internet banking , the mobile phone recharge feature,the fast trax et al ...
Fixed deposits isn't just their thing

Caracta:
After all i lost, i wouldn't go near equities again.



Other ways like?

I started trading equities when I was 20 and i've never lost anything. Its when you ignorantly buy into a company without checking the history or fundamentals that you get burnt. Even if you ignorantly buy into a stock and the price dips, you only lose when you sell prematurely. If you're patient enough to wait for the price to climb back while enjoying the divends they pay you, where's the loss?

Caracta:
After all i lost, i wouldn't go near equities again.



Other ways like?

Flipping real estate
Investing in startup biz
Micro lending
Forex trading
Commodities etc

DonDiego:


Turned into overnight billionaires, huh? LOL. You sure have a talent for hyperbole. The equities market that I personally remember post-2008/9 is one in which several players became very shy and moved whatever was left of their huge losses into other asset classes such that as late as 2012 or so the House of Reps was still lamenting about the non-recovery of the stock market while blaming SEC for not doing enough. Now, to make matters worse, all alleged paper billionaires have again seen their imaginary gains erased these past few months that there are now serious talks in credible circles of another imminent stock market crash. As they say in the equities market these days, those who have cash are king. And so apt, that.

Lol very ironic! Oga if you have money now better go and start buying stocks because they're currently trading at their cheapest prices. Future billionaires are stocking up on stocks now. Like 2008, many stock market billionaires will emerge in 2015.

duni04:
10% in 365 days??! When you can make10% in 1 day on equities. Only really ignorant people still subscribe to fixed deposits.

Pls educate me on this equity thing

duni04:

I started trading equities when I was 20 and i've never lost anything. Its when you ignorantly buy into a company without checking the history or fundamentals that you get burnt. Even if you ignorantly buy into a stock and the price dips, you only lose when you sell prematurely. If you're patient enough to wait for the price to climb back while enjoying the divends they pay you, where's the loss?

Y do u keep painting equity as if its risk free!??
Pls b realistic ok?
Just as av said its a gud investment but not meant for amateurs!

emperoracro:
I don't know how anyone in his right mind will go and fix a sum of money below #1M as fixed deposit, when there are several other ways of increasing ur money. FD pays very low interest. On 500k, u will get less dan 6K for 2months, wen one can get over 70k investing in other tins. Treasury bill is better,but still no worth it to me, and Equity is quite risky cos most Nigerian company are shrouded in secrecy.

"wen one can get over 70k investing in other tins". What investments would you recommend?

Caracta:


9.75%

Thanks

duni04:

Lol very ironic! Oga if you have money now better go and start buying stocks because they're currently trading at their cheapest prices. Future billionaires are stocking up on stocks now. Like 2008, many stock market billionaires will emerge in 2015.

hahahahahahhahahahahhahahahaha pls u sound lik a stock broker, are u one, if yes lets connect,wanna ask u some question.

duni04:

I started trading equities when I was 20 and i've never lost anything. Its when you ignorantly buy into a company without checking the history or fundamentals that you get burnt. Even if you ignorantly buy into a stock and the price dips, you only lose when you sell prematurely. If you're patient enough to wait for the price to climb back while enjoying the divends they pay you, where's the loss?

I started when i was 19. I still have some but the dividends are almost as good as nothing. I'm going to trade them off soon sef. I just keep praying a miracle happens and the values go up.

emperoracro:

Flipping real estate
Investing in startup biz
Micro lending
Forex trading
Commodities etc

Real Estate = Good, really good.

Startup biz= Too risky

Micro lending = Not bad, not too good.

Forex trading = No, no for me. Being there, done that.

Commodities = Good

emperoracro:
I don't know how anyone in his right mind will go and fix a sum of money below #1M as fixed deposit, when there are several other ways of increasing ur money. FD pays very low interest. On 500k, u will get less dan 6K for 2months, wen one can get over 70k investing in other tins. Treasury bill is better,but still no worth it to me, and Equity is quite risky cos most Nigerian company are shrouded in secrecy.

So what do u suggest

Dalby:
The interest rate given is annual not monthly, so the calculations are wrong.
N500,000 at 7% means N35,000 / year.
for 30days i.e 1 month it is N35,000/12 since 12 months make a year N2,916.67. At the end of 30days you have N502,916.67.

Thks a lot for taking your time to enlighten many of us..I was having faith in that erroneous calculations until Diamond Bank brought in their own.So for the potential investors,the interest rate is calculated on a yearly basis.

BiniShrine:
thanks a lot sir for d info. So if i shuld av 300k n want to fix deposit it wit my bank(gtb), al i av to do is to visit d bank n discuss d issue wit an enlightened management staff?? What interest wuld i get if i fix deposit 300k for two months ?

3082.19. U will be charged 10% of this as withholding tax

THEHEALER:
"wen one can get over 70k investing in other tins". What investments would you recommend?

I have listed dem out bfor

FKBZ:

So what do u suggest

Pls any genuine business idea will be well appreciated..Thats why we are here to cross pollinate our ideas

waleadex:


12months

What year did you invest the 1 million Naira? And what bank pls?

It's the same ARM. The one and only ARM in Nigeria.

Caracta:


Same ARM pensions that i know? Or another ARM?

duni04:
10% in 365 days??! When you can make10% in 1 day on equities. Only really ignorant people still subscribe to fixed deposits.

Pls enlighten me on equity

jtkoko9:
It's the same ARM. The one and only ARM in Nigeria.

If i hear say i trust them

duni04:

Lol very ironic! Oga if you have money now better go and start buying stocks because they're currently trading at their cheapest prices. Future billionaires are stocking up on stocks now. Like 2008, many stock market billionaires will emerge in 2015.

I agree that a lot of stocks are undervalued right now on the NSE and I am studying quite a few right now. But the market continues to tank as we speak and there is still the chance that in the coming days up till Jan/Feb next year one could yet get even better bargains. The stock market is goldmine I have to admit but one has got to have the training and experience to play it shrewdly and successfully. Otherwise the less risky investment classes such as the bond or money markets may just suffice for novices.

Even if you want to do fixed income, there are fixed income securities that peg the interest they pay to the CBNs MPR rate which currently stands at 13%. Earning 7% or 8% a year is just scandalous, too scandalous!

FKBZ:

So what do u suggest

i have listed dem out bfor and caracta has given an above average analysis of them.

@caracta every biz has some level of risk attached to it. Learning about the biz bfor jumpin into it is very important.
As par start up biz, they ar very risky but u can reduce ur risk by knowing wat goes on behind d scene bfor investin ur money, am sure u knw dis already.
And as par forex trading, dia ar ways u can minimise ur risks am sure u knw take profits and stop loses.
All in all am impressed wt ur analyses.

duni04:
Even if you want to do fixed income, there are fixed income securities that peg the interest they pay to the CBNs MPR rate which currently stands at 13%. Earning 7% or 8% a year is just scandalous, too scandalous!

Seriously! 7% is just off. Haba! Ontop wetin?

Caracta:


Seriously! 7% is just off. Haba! Ontop wetin?

7% on how much for how long?

emperoracro:


i have listed dem out bfor and caracta has given an above average analysis of them.

@caracta every biz has some level of risk attached to it. Learning about the biz bfor jumpin into it is very important.
As par start up biz, they ar very risky but u can reduce ur risk by knowing wat goes on behind d scene bfor investin ur money, am sure u knw dis already.
And as par forex trading, dia ar ways u can minimise ur risks am sure u knw take profits and stop loses.
All in all am impressed wt ur analyses.

You are right. Especially when the business is illegal. Feasibility studies can help too. Trust is also important. I try not to invest in start up businesses because I can't shout. Growing businesses offer lesser risks. Even some banks don't give loans to new businesses.

Forex trading? Hmmm. I don't want to go there. Lol. Maybe I've just been unfortunate. Isn't it gambling in a well-packaged form?