₦airaland Forum

I dey here

Op u shud know d interest are per annum o. For d 60 days. If d bank offer 9%. It means 9% divided by 365 days times 60. Which equals 0.85%.

Tnx op;u js saved me a lot of stress and trouble...now I knw exactly what to do when I"m ready....

Besides, these rates depend on negotiations. They are not fixed. I look at how much you are bringing in and the duration.

Again, these rates are not fixed. We only have fixed limits or benchmarks. Get your facts right.

Why go to the money market when you can also get secured - fixed interest rates from the capital market- have you ever asked where majority of these funds are put into by banks - answer- the capital market* get a very good broker and erhn - you would never think of fixed deposits with a commercial bank again - or simply I.M me - the beauty of it is the interest rates vary depending on the amount from 9.5 to 14% per annum -

Dalby:
The interest rate given is annual not monthly, so the calculations are wrong.
N500,000 at 7% means N35,000 / year.
for 30days i.e 1 month it is N35,000/12 since 12 months make a year N2,916.67. At the end of 30days you have N502,916.67.

Its not worth it jare! its better investing the money.

Nice work. Thanks.

Mentholated:
Sorry, your interest analysis is wrong. The rates are annually.

True, the op's analysis is faulty.

can I fix 2k?

Some bank staff (Access) do not know what the heck is term deposit eh. But their cyber pastime is chock-a-block with the term 'clueless' politician.

I think it will be wiser to go for that of first bank

I also have a fix deposit currently running in GTBank and the rate is correct 6.25 percent.but after the calculation,you can never get up to 5,000 naira talkless of 35k for either 60days duration or 30 days.if you guys care to know how the calculation is done,you can enquire from me.tnx.

uboma:
No bank here in Nigeria will pay you 35k for fixing 500k for 60 days. The Fixed Deposit rates varies from bank to bank. However the more money you invest in FD and the longer the tenor, the more you get...

Thank you my bro, it seems some people still did not understand how banking operates, the 7% they offer you is annual so when calculating your interest the time, (T) will be 0.166667year being 2 months of the 12 months, so your interest on 500k after the said duration will be N5,833.333. Except you have a large sum, many time its not worth it.

naijacutee:
Last month, I happened upon some money from an old investment which had matured. Rather than have it collect “one one naira” in my standard savings account, I decided not to be the fly that follows the corpse to the grave, and put it in a fixed deposit. Fixed deposits are a very popular investment option in Nigeria, and you’ll hear about them 8 times of out 10 if you do happen to ask for advice regarding how to invest money. The attraction to this sort of investment is that returns are guaranteed, and the duration of your investment is flexible. We probably like this sort of investment because they help us mitigate risks – in a country where nothing is guaranteed, we don’t tend to tie money down in long term investments and fixed deposits are the perfect solution to this investment problem. In the course of my search for a decent return on my investment, I “burnt” at least N5,000 in credit, calling banks and waiting in queues for information, and was only able to reasonably compare two banks – GTBank and First Bank.

What is a fixed deposit?
A fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest.
How to put your money in a fixed deposit: You will need to have an existing account with the bank of your choice, and then you deposit the sum into this account. You will then need to inform your bank of your intention to “fix” the said sum for “X” number of days. It is very important that before you make your decision, that you shop around for the best rates. You are not obliged to fix your money with your existing bank, just because you bank with them. You can earn a significantly higher amount by just picking up the phone. It is the more difficult route when you consider call waiting times, credit spent etc but it is worth it, and what’s more I have done some of this hard work for you.

How long is my money fixed for?
Most banks offer flexible periods of 30 days, 60 days, 90 days, 180 days and one year.

How do I get paid?
Usually, the money is removed from your account and the interest is paid into your account. So for example, you want to fix N500,000 for 60 days and the bank has offered you an interest rate of 7%. You have N550,000 in your account. Once you confirm you’re making the arrangement and sign all the necessary documentation, the N500,000 “disappears” from your account to be “fixed”. At the end of 60 days, you get paid back your original N500,000 + an additional N35,000 interest accrued. A simplified version of what really happens behind the scenes is that the N500,000 is given to another customer who has asked for a loan – but he will be charged 20% interest (or N100,000). After 60 days, you get back your N500,000 + N35,000 (7% interest from the other customers N100,000). Not bad business for banks, if you ask me.

Bank interest rate comparisons
For my enquiries, I called First Bank and GTBank.
I rated both banks on customer service quality (pet peeve of mine, because time is money) and interest rates.
tbankvsfirstbank

Interest rates
First Bank
7 days (First bank does not offer this service)
30 days – 9.25%
60 days: 9.50%
90 days: 9.75%
365 days: 10%
GTBank
Available from N100,000 to N1m.
7 days – 3.75%
30 days – 180 days : 6.25%
Some notes:
Call times. My initial contact with both banks was on a Friday afternoon, at about 5.30pm. My second contact attempt with GTBank after the first one proved futile was at 3.20pm on a Sunday.
Omissions. I initially wanted to include Accessbank in this exercise, but have been unlucky in getting through to a knowledgeable person on customer service. The frontline staff I have spoken to, all seem to lack basic knowledge regarding what services their banks offer and where to get information outside the limits of their knowledge. I would recommend that training is provided for all front line staff as a matter of urgency, as customers otherwise have no way of getting informed about competitive rates for your most lucrative services.
Am I an agent? I work for neither of these banks. My selection of this two is purely by chance and accessibility of contact information via the bank websites. I simply picked the banks with the most prominent contact information via websites. My reviews are unbiased, and if I haven’t reviewed any others yet, don’t worry – “life is turn by turn”.

Courtesy: http://www.mrpepe.com/banking/which-is-the-best-account-for-a-fixed-deposit-gtbank-or-firstbank/

I should think those rates are on per annum basis

Caracta:
That's not true pls. Fallacy!

I got #85,000 on #1,000,000 last October so I know what I am saying madam...

naijacutee:
Last month, I happened upon some money from an old investment which had matured. Rather than have it collect “one one naira” in my standard savings account, I decided not to be the fly that follows the corpse to the grave, and put it in a fixed deposit. Fixed deposits are a very popular investment option in Nigeria, and you’ll hear about them 8 times of out 10 if you do happen to ask for advice regarding how to invest money. The attraction to this sort of investment is that returns are guaranteed, and the duration of your investment is flexible. We probably like this sort of investment because they help us mitigate risks – in a country where nothing is guaranteed, we don’t tend to tie money down in long term investments and fixed deposits are the perfect solution to this investment problem. In the course of my search for a decent return on my investment, I “burnt” at least N5,000 in credit, calling banks and waiting in queues for information, and was only able to reasonably compare two banks – GTBank and First Bank.

What is a fixed deposit?
A fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest.
How to put your money in a fixed deposit: You will need to have an existing account with the bank of your choice, and then you deposit the sum into this account. You will then need to inform your bank of your intention to “fix” the said sum for “X” number of days. It is very important that before you make your decision, that you shop around for the best rates. You are not obliged to fix your money with your existing bank, just because you bank with them. You can earn a significantly higher amount by just picking up the phone. It is the more difficult route when you consider call waiting times, credit spent etc but it is worth it, and what’s more I have done some of this hard work for you.

How long is my money fixed for?
Most banks offer flexible periods of 30 days, 60 days, 90 days, 180 days and one year.

How do I get paid?
Usually, the money is removed from your account and the interest is paid into your account. So for example, you want to fix N500,000 for 60 days and the bank has offered you an interest rate of 7%. You have N550,000 in your account. Once you confirm you’re making the arrangement and sign all the necessary documentation, the N500,000 “disappears” from your account to be “fixed”. At the end of 60 days, you get paid back your original N500,000 + an additional N35,000 interest accrued. A simplified version of what really happens behind the scenes is that the N500,000 is given to another customer who has asked for a loan – but he will be charged 20% interest (or N100,000). After 60 days, you get back your N500,000 + N35,000 (7% interest from the other customers N100,000). Not bad business for banks, if you ask me.

Bank interest rate comparisons
For my enquiries, I called First Bank and GTBank.
I rated both banks on customer service quality (pet peeve of mine, because time is money) and interest rates.
tbankvsfirstbank

Interest rates
First Bank
7 days (First bank does not offer this service)
30 days – 9.25%
60 days: 9.50%
90 days: 9.75%
365 days: 10%
GTBank
Available from N100,000 to N1m.
7 days – 3.75%
30 days – 180 days : 6.25%
Some notes:
Call times. My initial contact with both banks was on a Friday afternoon, at about 5.30pm. My second contact attempt with GTBank after the first one proved futile was at 3.20pm on a Sunday.
Omissions. I initially wanted to include Accessbank in this exercise, but have been unlucky in getting through to a knowledgeable person on customer service. The frontline staff I have spoken to, all seem to lack basic knowledge regarding what services their banks offer and where to get information outside the limits of their knowledge. I would recommend that training is provided for all front line staff as a matter of urgency, as customers otherwise have no way of getting informed about competitive rates for your most lucrative services.
Am I an agent? I work for neither of these banks. My selection of this two is purely by chance and accessibility of contact information via the bank websites. I simply picked the banks with the most prominent contact information via websites. My reviews are unbiased, and if I haven’t reviewed any others yet, don’t worry – “life is turn by turn”.

Courtesy: http://www.mrpepe.com/banking/which-is-the-best-account-for-a-fixed-deposit-gtbank-or-firstbank/

I should think those rates are on per annum basis

naijacutee:
At the bottom there, it says that the poster tried with Accessbank and the customer service was so poor that they gave up.

Yeah. You should have asked how to fix weave on to get their attention.....sexist ain't I....

Me do Stanbic Bank Plc. @ 500k. D. Tin no make sense @ all. Oya make December finish make I use d cash make blocks for house.

waleadex:
I got #85,000 on #1,000,000 last October so I know what I am saying madam...

Maybe that was what you were given...not what applies to all. You made it sound like it's a basic rule.
It's possible to get more or even less.

I know because this is what I do everyday.

afanda:
Me do Stanbic Bank Plc. @ 500k. D. Tin no make sense @ all. Oya make December finish make I use d cash make blocks for house.

Fabdedon:
how does this affect the economy of Nigeria...

As the oil price goes down, inflation rises and the CBN raises rates to mop up cash to check inflation meaning they want you saving rather than spending. Be informed. It can change your life.

Reference:
As the oil price goes down, inflation rises and the CBN raises rates to mop up cash to check inflation meaning they want you saving rather than spending. Be informed. It can change your life.

i appreciate!!

Thanks - hope it helps someone.[/quote]it helps a lot, well done job

Keneking:
Really on 500k

No. I don't think the poster is absolutely correct about exactly how much accrues to you. The tenor is different from the rate. All interest is estimated P.A. Tenors can be 2 minutes for all they care.

Fabdedon:
how does this affect the economy of Nigeria...

u nor go tek beta advise now invest ur moni

God bless the OP for this piece , I'm really enlightened!

olaric:
GTBank's rate is ridiculously low; I would rather go for First Bank. Moreover, what's the matter with customer service personnel in Nigeria? From Glo to MTN to other companies; it's a sorry state!

All customer services are phucked up in 9ja. And the average Nigerian has no PR in his genes only bad manners.

Dalby:
The interest rate given is annual not monthly, so the calculations are wrong.
N500,000 at 7% means N35,000 / year.
for 30days i.e 1 month it is N35,000/12 since 12 months make a year N2,916.67. At the end of 30days you have N502,916.67.

Yeah, thanks. 35k on half mill in a month is certainly a Ponzi.

Tenim47:
how does dis ad to my amount? Mtchew

it add to your knowledge, rather

duni04:
10% in 365 days??! When you can make10% in 1 day on equities. Only really ignorant people still subscribe to fixed deposits.

On the other hand you could also easily lose 10% a day in the equities market esp in these endless bearish days.

waleadex:
I got #85,000 on #1,000,000 last October so I know what I am saying madam...

For how long did you invest your 1 million naira on FD Sir?