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This Is Bad News For Fixed Deposit Holder - Investment (4) - Nairaland

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Re: This Is Bad News For Fixed Deposit Holder by AceVentura: 11:28pm On Oct 18, 2015
The purported news from CBN is false. I'm with one of the new generation banks & I can categorically tell u that your bank is ripping u off.

I have a deposit with Stanbic & the rate is almost 10%.

2 Likes

Re: This Is Bad News For Fixed Deposit Holder by realnas(m): 11:31pm On Oct 18, 2015
Irrespective of what pple might think of the nigerian stock exchange I will maintain my stance that the place to generate wealth that will take care of you and your family is.andStill and the stock market ! A situation where an individual has 5 million naira that person can walk into any brokerage of his choice [dem yapa 4 V.I ] open a brokerage account with 50 k and plough that money into dangote cement . First bank, these r companies that pay juicy dividends it is well known that fbn hav been paying dividends since the 1980s if u add the bonuses they giv their shareholders and also put into consideration the power of compounding u are on ur way to livin a veri comfortable life knowing veri well that ur money is workin 4 u and nt the other way round as for gan cement it is the largest capped stock on the nse ,pays 6 naira dividendand it is trading at a reasonanle pe ratio my brothers and sisters forget about all these fixed deposit poo and invest ur money into the nse.ie after doing your homework of researching good companies that r structurally sound and pay dividends consistently
Re: This Is Bad News For Fixed Deposit Holder by chyket(m): 11:35pm On Oct 18, 2015
I dont believe this because the implementation of the T.S.A has taken away 1.3trillion naira from the commercial banks to the CBN and there is already a brewing liquidity crisis.The cash reserve ratio with the CBN has already been cut down to manage the crisis,so it will be very damaging then to also cut the fixed deposit rate at this point.
Re: This Is Bad News For Fixed Deposit Holder by HAH: 11:38pm On Oct 18, 2015
Any rate given to you that is not equal or above inflation rate is a loss.
Re: This Is Bad News For Fixed Deposit Holder by franktolk(m): 11:42pm On Oct 18, 2015
The rate quoted in loan and deposit agreements by banks is called Nominal interest rate which is as stated below

nominal rate = real interest rate + inflation rate

Its the inflation rate in the country that actually determines what the nominal rate of interest will be . as long as the inflation rate is not below 3% no bank that is into business to make profit will pay an interest rate or return on an Investment (ROI) that will be below or at par with the current rate of inflation .
Re: This Is Bad News For Fixed Deposit Holder by Nobody: 11:46pm On Oct 18, 2015
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.

My dear, better carry your money go make better investment because the opportunity cost of it lying down in the back with that ridiculous interest rate is going to be greater and in reality cost you more. I'm an economist by the way.
Re: This Is Bad News For Fixed Deposit Holder by LondonCool(m): 11:46pm On Oct 18, 2015
The news isn't plausible. The CBN doesn't set fixed deposit rates. The current NIBOR tenor rates doesn't reflect this change either.

1 Like

Re: This Is Bad News For Fixed Deposit Holder by Nobody: 11:53pm On Oct 18, 2015
Sorry, but this is old news.Guess you are not conversant with this.Been[color=#006600][/color] applicable for over 24 months,should not make front page at all.
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.
Re: This Is Bad News For Fixed Deposit Holder by PraiseDLord: 11:59pm On Oct 18, 2015
feelamong:


Treasury bills has already crashed na..

Bills we used to buy at 14% now going for 10.5%

I think it wont last though
Is 10.5% your defination of crash on a completely riskless investment??
Then u can try forex!

1 Like

Re: This Is Bad News For Fixed Deposit Holder by MKO4ever(m): 12:12am On Oct 19, 2015
ogunyooye:
Call me tomorrow 09032756181
I'll find out once I get to the office.
I work with Sterling Bank.
Its Adeyemi
Only the staff of Sterling bank will not know what is happening in his industry. Imagine news since Friday and you only just going to find out when you get to the office 2moro.

2 Likes

Re: This Is Bad News For Fixed Deposit Holder by tunergy(m): 12:22am On Oct 19, 2015
Dexpro:
I'm confused. You visited the bank today Sunday ?

Did you check the date Op opened this thread?
Re: This Is Bad News For Fixed Deposit Holder by obiak4(m): 12:42am On Oct 19, 2015
Caracta:
It's true. I saw the rate guide but I thought it was a mistake.

Treasury bills is next.
yea it's true thank jah have always prefered tbills over fixed deposite for reasons best know to me
though there was going to be a meeting btw cbn and banks directors to review mpc,minimum cash deposite before reviewing fixed deposite and other investment ........
Cbn shoulf try and aviod all this quick fixed measures
just saying my 2cent
Re: This Is Bad News For Fixed Deposit Holder by obiak4(m): 12:45am On Oct 19, 2015
feelamong:


Treasury bills has already crashed na..

Bills we used to buy at 14% now going for 10.5%

I think it wont last though
feelamong it still better pass fixed deposite na u know tbill upfront payment bla bla bla u knw na
Re: This Is Bad News For Fixed Deposit Holder by obiak4(m): 12:47am On Oct 19, 2015
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.
sleek u knw getting dollars now is very hard than passing jamb lolz
Re: This Is Bad News For Fixed Deposit Holder by obiak4(m): 12:54am On Oct 19, 2015
Adesiji77:


But they are better off having the funds in the banks, even at the supposedly low rates.
what of if the bank decide to play skiibi or saraki's hand touch d money
and the government refused to allow us to exchange or hold legal dollars
hmmmm this body odor don dey too much oooo baba use hausa perfume na enough pun
Re: This Is Bad News For Fixed Deposit Holder by tunesoft(m): 12:57am On Oct 19, 2015
Omooo......maka why now, I don die....so my fixed money na waste of time now...jeez..wey my calculator
Re: This Is Bad News For Fixed Deposit Holder by ifyan(m): 1:13am On Oct 19, 2015
Bj5all:
I think the whole essence is to discourage saving so that there will be more money in circulation.


Good one
Re: This Is Bad News For Fixed Deposit Holder by USAutoBuy(m): 1:59am On Oct 19, 2015
Martins301:
The Nigeria economy is ailing and our policy makers are still looking for ways to worsen the situation.

With the crashing of deposit rates, there is going to be scarcity of funds for banks to lend out. This will cause lending rate to increase. Investors will be discouraged from borrowing, as a result, we may witness slow down in new investment vis-a-vis capital accumulation. If investment falls, economic growth falls and unemployment rises. In the end, the economy suffers more because there is already of shortage of investible funds so I don't see why Emiefele will seek to discourage savings at this time. But what do I know? Nigeria has always been a place where theories don't work because of too many imperfections. Lets wait and see.

Beg to disagree. A high deposit rate translates to high borrowing rates for the business people. If banks are paying 15% for example, they will have to lend out at about 20% so that they can cover cost and make money.

When this policy goes across the board, depositors have no choice and will fall in line. And if you still think your money is safer under your mattress, by all means go right ahead

You will find out soon

1 Like

Re: This Is Bad News For Fixed Deposit Holder by Nobody: 2:12am On Oct 19, 2015
bumi10:
hmmmm, now let's see those that have brains and who can take risk.


I have always liken people who do fixed deposit with the bank as people who lack risk taken ability and dull brain people.


I meant no offense guys but how can you give bank your money to make huge interest while they give you peanuts? it is stupidity or u r not informed.

Now is time u get creative as cbn is making FD not attractive again.

take risk ok

Yet on the other hand I blame our so called government. How can government fail to provide infrastructure for SME to strive and yet force people to go into it.? as if dey delibrately want people to lose their money.

ROI is not our govt. concern I must tell u. they will end up chasing investors into other countries were they can at least break even and have better chances of ROI.

stupid govt.
I'm not talking professionally at all...but I think ppl have different reasons 4 opening FDs account...Some might just have some amount of money they'd rather have stacked away somewhere and untouched..It doesn't have to mean they don't have other investments. And 4 some others,perhaps what they have is too small to start up any meaningful investment...say a hundred thousand, so they just keep it aside until they can think up sth beneficial to do with it,or better still, save up some more to augment the little they had. #I'm just saying#
U can put me straight on any wrong notion. I'm willing to learn.
Re: This Is Bad News For Fixed Deposit Holder by ITSaWRAPPP: 2:16am On Oct 19, 2015
Treasury bills is sure the better option expect that the TB rate has also crashed and may even crash further come this Thursday when the next bidding would be taking place.

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Re: This Is Bad News For Fixed Deposit Holder by Nobody: 2:18am On Oct 19, 2015
benpedro:
take your money away from them now anf run as fast as you can to avoid had i known
Because at some point they'll disappear with their money?
Re: This Is Bad News For Fixed Deposit Holder by Nobody: 2:18am On Oct 19, 2015
benpedro:
take your money away from them now anf run as fast as you can to avoid had i known
Because at some point they'll disappear with his money?

1 Like

Re: This Is Bad News For Fixed Deposit Holder by aadejesu: 2:30am On Oct 19, 2015
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.

I also work in a bank, and I can tell you categorically that I helped a customer fix 10million for 90 days @ 10%. Call me tomorrow on 08099337763 and we can talk about the best rates in the industry for your investment

1 Like

Re: This Is Bad News For Fixed Deposit Holder by Truckpusher(m): 2:42am On Oct 19, 2015
Bj5all:
I think the whole essence is to discourage saving so that there will be more money in circulation.
That awkward moment when you read a dumb comment and some folks are hitting a like ,as in seriously ? so what then happens to serious savers who wants to save against tomorrow ? and the same Govt is making an economic policy of currency strangulation ?


Ya'll need to keep quiet and stop making dumb people dumber.

1 Like

Re: This Is Bad News For Fixed Deposit Holder by Truckpusher(m): 2:44am On Oct 19, 2015
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.
Welcome to voodoo economics/economy from Buhariconomics of the planet Nibiru,the planet of an alien race. grin
Re: This Is Bad News For Fixed Deposit Holder by Honadeadek(m): 3:05am On Oct 19, 2015
The bitter truth is lending has dropped as most Banks are not lending to State civil servant as a result of delay salary payment and in this case most banks are running at loss mopping up deposit without lending. I can confirm CATHEGORICALLY from the rate adviced as at Friday that investment exceeding 100 million even comes with interest rate of 1%. Although the new rate doesnt affect existing investment but it will only affect deposits to be rolled over or a new one.
Re: This Is Bad News For Fixed Deposit Holder by t2luv1: 3:43am On Oct 19, 2015
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.


Now I know why banks charge crazy rate when loaning out money in that country. How one can expect to make 10% for 60 days on deposit in beyond comprehension. Annual interest charge in USA is between 1.9% - 3% and the bank then turn around and pay .75% to 1.25% to depositors. How do your expect the economy to expand with those kind of rates. No wonder that country in in such a bad situation. No logic to anything.
Re: This Is Bad News For Fixed Deposit Holder by opalu: 3:53am On Oct 19, 2015
Why on earth would you fix money in bank and get 10% interest in the first place?
Always tie your money to a rock-solid real estate development that will guarantee you 25% Interest.
The reason is simple: With such investment you will SEE the value that your money has created in terms of physical structures there is no way your money can varnish into thin air thru a policy made by CBN as in deposit or varnish thru on speculation by some people as in shares and bonds.
Re: This Is Bad News For Fixed Deposit Holder by GboyegaD(m): 4:03am On Oct 19, 2015
Hope banks will crash down interest rate on risk assets otherwise, CBN has only made monies for the bank and made things worse.
Re: This Is Bad News For Fixed Deposit Holder by Youngzedd(m): 4:13am On Oct 19, 2015
SleekReek:
I really don't understand why anyone in Nigeria will be doing fixed deposit with our inflation rates, you are only making money for the banks, who know how to use your money better than you, this doesn't not make sense. smiley
Re: This Is Bad News For Fixed Deposit Holder by okitikpo: 4:50am On Oct 19, 2015
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!

1 Like

Re: This Is Bad News For Fixed Deposit Holder by PoosPoos: 5:14am On Oct 19, 2015
Dis Buhari sef!na know know go killam! :-

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