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Advantages and Disadvantages Of Fixed Deposits - Business (2) - Nairaland

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Re: Advantages and Disadvantages Of Fixed Deposits by toprealman: 8:07am On Jun 30, 2017
prof800:
On point.
The banking system is a big rip off.
In naija mainly! You pay for poor quality ATM cards, silly maintenance monthly fee, SMS, email....etc. Whatever happens to Evans should happen to them...."lubish"

1 Like

Re: Advantages and Disadvantages Of Fixed Deposits by Nobody: 8:12am On Jun 30, 2017
I prefer fixing money I don't intend to spend in six months.

The best places to fix money is MFBs. If you can get a solid one, not all these mushroom ones. It's worth it, their interest rate is higher and they use ur money for business.

When it comes to business loans, MFBs dey dish them out daily.

1 Like

Re: Advantages and Disadvantages Of Fixed Deposits by oribi(m): 8:25am On Jun 30, 2017
fixed deposit na sure p depends on where you fix am jare
Re: Advantages and Disadvantages Of Fixed Deposits by mankand(m): 8:26am On Jun 30, 2017
M

You know what I'm thinking?

Mm the way forward
Re: Advantages and Disadvantages Of Fixed Deposits by kingsleyugo41(m): 8:40am On Jun 30, 2017
FD is 100% guarantee unlike others check https://nairabest.wordpress.com
Re: Advantages and Disadvantages Of Fixed Deposits by brightgreat(m): 8:55am On Jun 30, 2017
Oyaaa tell us what you know oooo


Oyindidi:
I was advising my brother to put some money in FD, now I know better
Re: Advantages and Disadvantages Of Fixed Deposits by iamDozzy(m): 9:44am On Jun 30, 2017
If you fixed a 100m upwards you will know its a good investment
Chiefpriest1:
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...
Re: Advantages and Disadvantages Of Fixed Deposits by Omonigeriarere: 9:46am On Jun 30, 2017
tripleY:
Tot i knew all about Fixed deposit.

Thumbs up OP

Don't waste your time on FD; treasury bill is better.

1 Like

Re: Advantages and Disadvantages Of Fixed Deposits by Gaddafithe2nd(m): 10:24am On Jun 30, 2017
Fixed deposit is a lazy man way of making money.
Re: Advantages and Disadvantages Of Fixed Deposits by Nobody: 10:37am On Jun 30, 2017
froz:
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/


Nice post
Re: Advantages and Disadvantages Of Fixed Deposits by mechanics(m): 10:42am On Jun 30, 2017
Will go with the advantage.
Re: Advantages and Disadvantages Of Fixed Deposits by francotorti(m): 11:15am On Jun 30, 2017
just passing....i will comment later
Re: Advantages and Disadvantages Of Fixed Deposits by francotorti(m): 11:17am On Jun 30, 2017
adewumiopeyemi:
What abouh if the bank is shutdown whah wil happen to our money*... cry

your money will be shutdown also
Re: Advantages and Disadvantages Of Fixed Deposits by walexy14(m): 6:29pm On Jun 30, 2017
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Re: Advantages and Disadvantages Of Fixed Deposits by Nobody: 7:41pm On Jun 30, 2017
I rather take quarter of that money and be running M M M.... Before 3months time, I must have realise over 200% of such money than to waste my time with the banks... Can u imagine? I went to the bank today to make enquiry about fix deposit and could u believe that, 500k will earn just N4000+ in 90days period? Rubbish.. Absolutely Rubbish... I rather leave the money like that in my account

1 Like

Re: Advantages and Disadvantages Of Fixed Deposits by Nobody: 7:42pm On Jun 30, 2017
mankand:
M

You know what I'm thinking?

Mm the way forward
Triple M na the best bro
Re: Advantages and Disadvantages Of Fixed Deposits by august2224(m): 1:29am On Jul 02, 2017
i remember being urged by a pretty female marketer in a Nigerian bank to open a fixed deposit account; she spelt out all d advantages, not knowing that i am a finance person. when she was done, i asked - what is d rate of interest? upon which she replied 5%. all d lectures on investments, portfolio mgt n practice of banking i taught to my undergraduate students began to mk me go crazy at these institutional financial thieves.- banks will keep on ripping off those without financial intelligence

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