Even if the process of placing a fixed deposit varies slightly from one bank to another, opening a fixed deposit account is still very simple. First, determine how much you want to place in your deposit plan. If you do not have a regular savings account in the bank, you will have to fill-in a deposit mandate form. In some banks, you would also need to fill-in reference forms so you can deposit cheques issued by third parties.


The bank will require; passport photograph, proof of identification, a copy recent receipt from any public utilities and a copy of a residence or work permit for foreign account holders is required. If you have existing account(s) in the bank, you need to just fill-in a form stating the following: account name, account number, deposit amount, duration of deposit.

Advantages

The most important advantage of investing in Fixed Deposit is that, it offers guaranteed return because there are very low risks and uncertainties as compared to investment in stock market. Furthermore fixed deposits are very flexible and convenient in nature because one can have fixed deposit with maturity for 1 month or 1 year with any amount unlike real estate where one needs to invest heavily. In addition, investing in a fixed deposit account earns you a higher interest rate than leaving your money in a savings account as FD’s interest rates are highly negotiable. It is easy to raise a loan against your FD. One can borrow up to 90 per cent of the FD’s amount.

Disadvantages

As attractive as fixed deposits can be, they may not necessarily be suitable for everyone. One of the biggest disadvantages of investing money in fixed deposit is that, its returns are low compared to other investment options and if the inflation is very high fixed deposit investors are the worst hit as the return from fixed deposit may not be sufficient to cover the high expenses due to inflation.

Also, If one invests all of his or her money in fixed deposits, he or she may not enjoy the benefits of diversification which one get if one invests the money in stock market, real estate, gold and other alternate investments. As far as taxation is concerned fixed deposits are taxed at normal rates of taxation and hence one cannot take the tax benefit from this investment, unlike the infrastructure bonds.

Moreover, because your money is locked away with the bank, often for months, you lose the flexibility of a regular, day-to-day savings or current account. If you do withdraw your money from your fixed deposit account before the agreed maturity date, you will likely be penalised in the form of reduced interest or penalty fees.


SOURCE: https://brandspurng.com/advantages-and-disadvantages-of-fixed-deposits/

On point. The banking system is a big rip off.

Very Insightful post, OP!

Front page please...

Tot i knew all about Fixed deposit.
Thumbs up OP

Whats the inflation rate in Nigeria right now?

One of the coded ways the rich keep getting richer. Its for money that is not needed immediately. But then,people would rather opt for MMM.

Everything about money in Nigerian banks is a disadvantage.

Who fixes money again. Pure waste. Remember fixing some cash about ten years ago in UBA. I was even the one paying the bank, not the other way round. Always a story.

Time to get my money back, it became a problem. Took close to two weeks to get it liquidated.

Sometimes , the value of your money gets eroded with inflation, leaving you high and dry.

If the money is huge and you won't need it immediately, buy a landed property or an asset that won't deteriorate fast.

Fixing money is useless...

slay goddess wont come to this thread but if it is to spend a man's money they have Phd in that ...slay mamas come and learn one or two things


btw amazing thread

Banks make so much money off people's funds.Yet they treat the common man like thrash..giving preference to thief's. In fact the way those customer care guys reply you depends on your account balance they are seeing.

ftc

/
There is no benefit to fixed deposit.

/

The only advantage of fixed deposit is that, when the time lapse, you get your money-back no deduction, no story.

All other things are disadvantages!!!

Dis article lack substance, i can bet this op has never fixed his money. . It is subject to 10% wht tax. What is its subject to normal tax . Ur money is locked away(no be u go fix ur money). Beta to-do mutual funds or treasury bills

your money is relatively safe from you at least you wont tamper with it for the time been.

ok

KINGwax007:
The only advantage of fixed deposit is that, when the time lapse, you get your money-back no deduction, no story.

All other things are disadvantages!!!

Mind telling me some of the disadvantages

Thanks Op for this great enlightenment. May God bless everyone endeavors.


Check my signature. You will like those things in there.

splmosixx:
ftc

Yes my brother, you have finally made it to ftc.

I can see your network is super faster..

Just learnt.

For those that knows about investments fixed deposits wouldn't be the best way to invest your money but if you are not familiar with investing , you can go for fixed deposits

Cool


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Oyindidi:
I was advising my brother to put some money in FD, now I know better

Wow,nice color

What abouh if the bank is shutdown whah wil happen to our money*...

Quite informative.

Tahrah:
Wow,nice color

I don join you