If you are interested in activating that interest-generating instrument, then the fixed deposit accounts may be your surest bet. Nigeria is known to have a robust banking sector that has evolved over the years. There are various commercial and investment banks in the country, ranging from small to large corporations. These banks provide various financial services such as savings and current accounts, loans, mortgages, and investments.

What is a Fixed Deposit Account?

A fixed deposit account is a type of investment account offered by banks. It is a savings account that allows you to invest a lump sum of money for a specific period, usually ranging from 30 days to 365 days. The interest rate on a fixed deposit account is fixed and higher than that of a savings account. Fixed deposit accounts are suitable for individuals who want to save money for a specific purpose or those who want to earn higher interest rates than savings accounts. The interest rate on a fixed deposit account is determined by the amount invested, the duration of the deposit, and the bank's policies.



Fixed Deposit Rates Among Nigerian Banks

The interest rates on fixed deposit accounts in Nigerian banks vary significantly. Here is a list of the top Nigerian banks and their fixed deposit rates for 2023.

1. Guaranty Trust Bank

GTB has a Fixed/Tenured Deposit account which is a tenured investment account with a specific amount invested at an agreed interest rate and tenure. At the end of the agreed period (tenure), and based on the account holder’s instructions, the investment can either be re-invested or returned with the interest amount earned. The tenure is usually 30 days minimum, or 180 days maximum. This account offers a 4.95% interest rate per annum and an additional 1% bonus interest to customers who maintain a Standing Order deposit for 1 year.


2. Access Bank

Access Bank’s High-Interest Deposit Account is an investment account made at a fixed interest rate and fixed maturity date. The investment can be used as collateral for a loan while the interest on deposits is guaranteed. Interests on this account range from[b] 5.25% p.a. to 5.45% p.a.[/b]
The maximum amount held in the account is N50 million.


3. Union Bank of Nigeria

As with all its financial products, Union Bank’s fixed deposits, whether short, medium or long-term, offers a high degree of investment certainty to its customers. The termed deposits can either be re-invested or paid to the customer with the earned interest at the agreed amount of time. With a minimum tenor of 30 days and a minimum deposit of ₦100,000, interests on this account range from 4.2% to 4.5%.


4. Stanbic IBTC

Stanbic IBTC’s Fixed Deposit Account is perfect for those who have a lump sum of money to invest and desire amazing returns. The Fixed Deposit Account can earn depositors more interest on their money from a period as short as 30 days to up to a full year. With competitive interest rates, depositors can receive either interest only or interest plus principal at the expiration of the term. The interest rate subject to withholding tax is currently at 10%.


5. Fidelity Bank

Fidelity Bank’s fixed deposit accounts offer investment options in various currencies; Naira, Dollars, Euros and Pounds. It offers interest rates as high as 6% for Naira investments, and 5% for other currencies depending on the principal invested.


6. Sterling Bank

Fixed Deposit, a product by Sterling Bank is an investment account designed for individuals and businesses that wants to enjoy a financial instrument that pays a fixed rate of interest for a given period. It comes with a minimum tenor of 30 days, negotiable and competitive rates and interest is paid at full maturity. Investment is also renewable on maturity with an interest rate of 2% – 5% p.a.


7. First Bank of Nigeria

First Bank grows your money with its Fixed Deposit account which lets you invest a specific amount of money for a fixed period of time at an agreed interest rate. At the end of the agreed period, the investment can either be rolled over or liquidated with the interest amount earned. Individuals and Corporate organisations can operate this account.


8.UBA
United Bank for Africa’s Fixed Deposit Account is designed for corporate organisations to maximise returns and earnings on their funds for a specific period. Its interest rate and tenure are subject to the customer’s preference. Interest with the principal can be re-invested immediately after the end of the agreed tenure. Interest received is not subject to tax and ranges between 3.8 % to 4%.


9. Ecobank Nigeria


Fixed Income Fund, a product of Ecobank, aims to optimise predictable, long-term investments in Africa’s economic growth so that you can invest more confidently. The fund also allows holders to subscribe to units on behalf of children under the age of 18, who can either take over the investment or cash out after their 18th birthday.


10. Polaris Bank

Polaris Wise is a 3-in-1 high-yield savings account that combines the features of a savings, current and fixed deposit account. It encourages depositors to save more to earn more. It has a minimum opening and operating balance of N10,000. Interest forfeiture applies on balances below N100,000 or if the withdrawal limit exceeds the maximum of three times monthly.

Want more valuable content like this? Visit nairaCompare to compare fixed deposit rates of Banks in Nigeria and select the one that’s best for you!

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