Amusaopeyemi:

I really hope it's not true o.

It's not true.
If CBN have done a thing like dat, u shud hv heard dat in d financial news already.

benpedro:
take your money away from them now anf run as fast as you can to avoid had i known

why? I know this guys as a reputable business folks for a while now. Give me reasons why I should take my money from them

GudluckIBB:


FD Is not savings, its investment.

It's technically savings.

ogunyooye:
Call me tomorrow 09032756181
I'll find out once I get to the office.
I work with Sterling Bank.
Its Adeyemi

There's really nothing here to confirm.

The news is fake.

David0:
It's not true please. Am a banker, n I can confirm it's not true. It is possible d bank op visited wants to play a fast One on him, by reducing d interest rate so d bank gains more from his investment.

I have similar concerns too but decided to keep an open mind.

A banker would do "anything" to retain deposits, especially now with the implementation of the TSA.

Can CBN unilaterally fix the cap for FD rates?

Waiting to see a circular (if any) to that effect.

First, OP I doubt this story. My reason is because, since CBN's directive for the Treasury single account (TSA) and the Increase in banks Cash reserve ratio (CRR), our banks have less cash to operate with. So they only can win cash by enticing us with their interest rates. Moreover Fixed deposits rate cannot be 3% when Inflation is standing at 9% currently, its against the monetary policy school of thought. For those of you criticizing Fixed.deposits, if a bank offers u 11%, u r not foolish as pple are writing here, coz its well above Inflation rate that just rose to 9%. U are not losing money!!!....I know of a bank that offers 12% just as high as in T.bills, everytin lies on INFO. I'm not an economist, but I doubt this story OP!

wow. ok, from my lil knowledge of economics, this move has its advantage and disadvantage.
advantage in the sense that time deposit investors will now shy away from saving excess cash and invest it in their businesses thereby driving the economy.
But then not everybody is business minded which makes their consumption higher than their savings which can result into excess cash in the economy with higher inflation as a resultant effect.
that na the lil economics wey i know o. perhaps there are other better analysts here.

Yes lest i forget, a lot of bankers will now have suicide tots cos their jobs will be on the line especially 'bank salesmen' just becos more pressure will be on them to shore up more deposits.
.

If u have surplus fund and u r looking for business to invest in and make profit,also create jobs.........................SUIT BIZ is the answer!check my signature

This will be a great policy from the CBN; if and only if it is true.

1. This will discourage people from hoarding money.
2. This will discourage government officials from fixing government funds in personal accounts.
3. It will encourage entreprenuers and entreprenuerships.
4. Banks will be forced to loans available since the profit from deposits will be very low.
5. If banks don't give out loans at low interest rates, their profitability will drop.
6. Bank workers such as marketers 3will be driven to pursue deals instead of monetary deposits.
6. Money for innovative people. Bank go beg for creative people to come up with ideas.
7. Banks will no go abroad to borrow excessively from foreign financial institutions.
8. Every business idea will count.
9. No more lazy methods of making money cheaply.
10. Add yours!!





Yipeeeeeeeeee!

dantti2006:
Take this from a banker with an apex bank. It's not true. Although at my bank the minimum you can fix is 5 million. Rates have dropped but not to the ridiculous levels stated here. Contact me if you need to do a fixed deposit with your amount and tenor let's discuss.

What type of bank sets N5m as the minimum amount for fixed deposit?

No need of disturbing urself just tell dem u wanr invest in treasure bills,with dis u are dealing with CBN direct and ur money is more secured Dan even fix Dep. We don't tell pple dis in d bank because u have higher interest.

ministeriallist:

Government want to encourage productive investment leading to more jobs. Good move!

no its not a good move,discouraging savings will only channel money out of the rich's pocket and take it to the poor,and with low tendency for the poor to save and invest,It will deeply retard development which is needed for growth,this was the area I really commended gej'$ effort.... this will also spike up inflation and God help us if it's just a demand pull inflation coz if it's the other one(name withheld) then pmb is up for a mission impossible

Bj5all:
I think the whole essence is to discourage saving so that there will be more money in circulation.

which will intirn lead to inflation, trust me if Pakistan couldn't do well with a very high demand pull inflation an I wounder the miracle that can happen here.....gej was a real hero I must say,look the way he arranged the economy's financial stability,wouldn't you agree?

this is a very irrational move by the CBN,where iuld now be the source of loan for the business me to run importations and do foreign exchange? I for see a future of $1=#600 if its not quickly reversed

Bj5all:
I was at the bank this morning to monitor one of my fixed deposit accounts and also to open another one when a news came to the bank via their mailing portal that CBN as changed the fixed deposit rate for all deposit holder.

The interest rate for deposit between 100k to 50 million is now 2.5% for 30 days and 2% for 60 days and above. For deposit from 50 million and above is 3% as against the 10% ihave been dealing with the bank.

I don't know if this is the same for other banks but i think it is bad news for Fixed Deposit holder.

Please i will want our financial analyst here on nairaland to explain the implications of this decision on the economy.

I left the bank feeling very bad.

The rational is that people will be discouraged from just keeping monies in the bank and the money will go back into circulation through investments and business. Cyclic effect is the creation of employment and jobs and control on inflation.

Activa:


CBN does not fix the interest rate on fixed deposit for banks. It only sets the MPR and banks take a cue from there.

How do you 'monitor' your fixed deposit accounts?

Were you at the branch or the head office when the news came?

Now to other issues.

Given the current inflation rate of over 9%, the rates you've quoted aren't possible. If those rates happen with the inflation rate like that, the 'savings' side of the income equation will collapse.

If everybody spends his money what do u think to the bank's ability to lend?

Conclusion: the story you've written here appears fake.

I agree with you Activa. My was maintained at the last Banker's Committee meeting at 13% meaning interest on saving which is 30% of more is 3.9%. For all banks that is the minimum. So fixed deposit should go for above 4% to 10%. 4% is ridiculously low. The op bank may be distressed. Please name the bank and this would be a malicious and dangerous rumor if the info is not true.
Thanks

SleekReek:


It is only investment if you fix it in dollars certainly not in Naira, fixed deposit is a loss eventually due to our inflation rate.

please read your economics again,fixing money is investment,it help banks to have liquid cash to borrow investors.If this is true wahala dey.God we dey your hands

It simply means ur interest wil reduce d dates it was approved by d CBN, all oda ones got b4 dis notice wont be touched, so u get any business idea, u ave to withdraw d money and put it into use.

Don't invest in fixed deposit, only feeble-minded people do. They trade with ur money and give u less dan 1% of what they make.
Im an expect forex trader. Visit my blog
www.aheadmarket.com
call me so we can do business
08060295965

@Op, please, can u tell us the precise bank?

Ffg

January!January!!January!!! Nigerians go hear am!!! I look and laugh

I think u are not getting it right @op.... 2.5% u said it's monthly rate, while the initial 10% is a yearly rate.

Which bank pls

megainvest:
Welcome to the stock market where you can earn interests in thousands of percents and risk losing only 99.99% of your funds. Can you handle it?

Stock market wey dem sabi inside trading?
Bought some blue chip stocks: Cadbury, Unilever, Oando & PZ, way back then not knowing that the market was artificially inflated; they had since crashed and worth pittance compared to their former value; I have long given up hope of any recovery, not even bothering to check, maybe one day my children may inherit them in time to make money.

fe

Bj5all:
I think the whole essence is to discourage saving so that there will be more money in circulation.

This doesn't make any sense. But then again I wonder why someone with that much money will choose to do FD. Investments banks are there with their various products.

Diamond Bank has always done 5 mil as her minimum fixed deposit but we do have other products for customers with less than 5 mill like our HIDA account which is a high interest deposit account and you can fix from 1 mill upward with your online banking platform only.

Meanwhile would this also affect banks' lending rates?

Bj5all:
I was at the bank this morning to monitor one of my fixed deposit accounts and also to open another one when a news came to the bank via their mailing portal that CBN as changed the fixed deposit rate for all deposit holder.

The interest rate for deposit between 100k to 50 million is now 2.5% for 30 days and 2% for 60 days and above. For deposit from 50 million and above is 3% as against the 10% ihave been dealing with the bank.

I don't know if this is the same for other banks but i think it is bad news for Fixed Deposit holder.

Please i will want our financial analyst here on nairaland to explain the implications of this decision on the economy.

I left the bank feeling very bad.

If so i will be half luck and swith to Fbncapital money market fund...
thanks for these insight.

ItsMeAboki:


Stock market wey dem sabi inside trading?
Bought some blue chip stocks: Cadbury, Unilever, Oando & PZ, way back then not knowing that the market was artificially inflated; they had since crashed and worth pittance compared to their former value; I have long given up hope of any recovery, not even bothering to check, maybe one day my children may inherit them in time to make money.

ItsMeAboki:


Stock market wey dem sabi inside trading?
Bought some blue chip stocks: Cadbury, Unilever, Oando & PZ, way back then not knowing that the market was artificially inflated; they had since crashed and worth pittance compared to their former value; I have long given up hope of any recovery, not even bothering to check, maybe one day my children may inherit them in time to make money.