source: http://www.talkasset.com/guaranty-trust-banks-updated-fixed-deposit-rate

The only downside to fix deposit is inflation. Inflation is the general increase in prices and fall in the purchasing value of money. this means when if you have $10,000 and you wish to fix it from the month of January to December. If there is rise in inflation, the prices of good will increase and that will in turn mean that the quantity of things your money can buy will reduce and because prices of good will increase. This article we aim at covering the the latest fixed deposit rate for Guaranty Trust Bank GTB.
RATE GUIDE FOR ROLLOVERS ONLY 7 DAYS 30 DAYS 60 DAYS 90 DAYS 180 DAYS
VALUE BAND % % % % %
N100,000 – N1mm 0.01 4.50 4.50 4.50 3.50
>N1mm – N10mm 0.01 5.50 5.50 5.50 4.50
>10mm – N25mm 0.01 6.50 6.50 6.50 5.00
>N25mm – N50mm 0.01 6.75 6.75 6.75 5.50
>N50mm – N100mm 0.01 7.00 7.00 7.00 6.00
>N100mm 0.01 7.00 7.00 7.00 6.00

Rate concession should be sought from Treasury for funds above N5.00bn. costumers with cumulative investments above N5.00bn booked within a week are also affected.

In GTB fix deposit start with as little as N100,000 and they have minimum period of 7 days and maximum of 180 days.

Please note that there is a withholding tax (WHT) of 10% on the interest earned on fixed deposit.

source: http://www.talkasset.com/guaranty-trust-banks-updated-fixed-deposit-rate

Why did I go to one of their branches in Port-Harcourt and was informed 4% and was going 2moro 2 fix some money abi na internal arrangement.

I still don't know how this thing works, if I want to fix 100k for 90days, how much will b my interest?

100k for 90 day is 4.5% THIS MEANS 4.5 X N100000 /100 = N4500, NOW THIS N4500 DIVIDED BY 12 MONTHS EQUALS N375 PER MONTH THEN MULTIPLY IT BY 9 MONTHS WHICH IS EQUALS N3375. AFTER THAT, TAKE AWAY 10% TAX WHICH IS N337.5. THE AMOUNT LEFT IS N3037.5.

This your calc get as he be o, why dividing 4500 by 12 months again when 90 days factor u use is 3 month.

anisalome:
100k for 90 day is 4.5% THIS MEANS 4.5 X N100000 /100 = N4500, NOW THIS N4500 DIVIDED BY 12 MONTHS EQUALS N375 PER MONTH THEN MULTIPLY IT BY 9 MONTHS WHICH IS EQUALS N3375. AFTER THAT, TAKE AWAY 10% TAX WHICH IS N337.5. THE AMOUNT LEFT IS N3037.5.

me too I want to know how it works, can someone please explain in lay man language.

I did a 1 miilion fixed deposit wit Gtb n on d 3rd month belive me I stil did nt get more dan 3k on it its,I just cald my acct officer to liquidate d rubish,dis country is funny

That is why it is hard to understand them. but I tell you that is how it is being calculated. the longer you keep it the higher the interest rate

whitecloth:
This your calc get as he be o, why dividing 4500 by 12 months again when 90 days factor u use is 3 month.
me too I want to know how it works, can someone please explain in lay man language.

anisalome:
100k for 90 day is 4.5% THIS MEANS 4.5 X N100000 /100 = N4500, NOW THIS N4500 DIVIDED BY 12 MONTHS EQUALS N375 PER MONTH THEN MULTIPLY IT BY 9 MONTHS WHICH IS EQUALS N3375. AFTER THAT, TAKE AWAY 10% TAX WHICH IS N337.5. THE AMOUNT LEFT IS N3037.5.

Thanks for your responce but where did the 12months and months surface from?

pinkyruledworld:
Thanks for your responce but where did the 12months and months surface from?

from my understanding, I think the 12 months is their default calculating formula. every period has already been multiplied by 12. this means 4.5% for 9 months is actually 3.375%. you can still find out from your account officer for clarification.

pinkyruledworld:
Thanks for your responce but where did the 12months and months surface from?

The 4.5% is a yearly interest rate. He divided by 12 to get monthly returns then multiplied by the number of months you fixed your cash for

So this is how it works. 4.5% is a yearly interest. Thanks 4 d clarification

whitecloth:
This your calc get as he be o, why dividing 4500 by 12 months again when 90 days factor u use is 3 month.
me too I want to know how it works, can someone please explain in lay man language.

this means if you want to fix 100k for 90 days, then the calculation is 100k x 4.5/100 which is = 4500. Since its 90days you want to fix it, then the interest should be in prorata bases. This becomes 4500 divided by 365days = 12.328767.your interest daily is 12.328767. Now multiply it by the 90days you wish to fixed it . It becomes 12.328767 X 90days = #1109. that is your interest for the 90days. Now you can remove 10% withholding from it to get final interest