On my previous posts on fixed deposits, I have been repeatedly asked for current rates as there is a lot of conflicting information out there. As a result of this, I have contacted a few banks directly in order to get current fixed deposit rates. The rates provided below are valid as at 16th of February 2016.

Recap: how do fixed deposits work?

A fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest.

You will need to have an existing account with the bank of your choice, and then you deposit the sum you want to fix 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.

The money to be fixed is removed from your account and the interest is paid into your account monthly. So for example, you want to fix ₦500,000 for 60 days and the bank has offered you an interest rate of 7%. You have ₦550,000 in your account. Once you confirm you're making the arrangement and sign all the necessary documentation, the ₦500,000 "disappears" from your account to be "fixed", leaving you with a balance of ₦50,000. After 30 days , you get ₦2,625 interest paid into your account: [(7% x ₦500,000) / 12] - 10%. After another 30 days, you get ₦2,625, again plus your initial ₦500,000.

Fixed deposit rate comparison: GTBank, First bank, Diamond bank, Sterling bank, Stanbic, Wema


That's it. It looks like Sterling bank offers the most competitive rates for now, but it's a good idea to always check before making a commitment.

Am I an agent? I work for neither of these banks. My selection of these banks 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".

EdDave:
These banks are very funny. You had better call them.
Naijacutee, hope u know you will be taxed on the interest?

doomsdayII:

Seriously? Do u mean just interest or the capital and shed a Lil light. It'll enable me to fold up if not favourable or not

Ryder306:


Its the normal withholding tax of 10% of ur interest. Your advised letter of your fixdeposit must have shown that detail there. Confirm IT

doomsdayII:

I wasn't given any letter

YoungExec:
seriously?! Some people still do Fixed Deposit?!

doomsdayII:
I still don't get why gtb didn't pay my interest last month. I fix for every 30 days or rollover. I did a rollover this month cos I didn't have much to extend and they didn't pay my interest for last month.
Any ideas naijacutee? I will appreciate

doomsdayII:

Seriously? Do u mean just interest or the capital and shed a Lil light. It'll enable me to fold up if not favourable or not

EdDave:
These banks are very funny. You had better call them.
Naijacutee, hope u know you will be taxed on the interest?

nnamdiosu:



they probably did. but what gtb does is they add the interest to ur principal and fix the whole sum.....that's if the money is being rolled over

Ohonba:
I know of reliable place that will give as much as 11% for 1m,
want to know how? reach me on hnb_matthew@yahoo.com

Ryder306:

Share it here

doomsdayII:
I still don't get why gtb didn't pay my interest last month. I fix for every 30 days or rollover. I did a rollover this month cos I didn't have much to extend and they didn't pay my interest for last month.
Any ideas naijacutee? I will appreciate

freeman67:


GTB Normally send investment advice/notice for transactions like this. You can check you e-mail to see if it was sent probably it was rolled over with the interest. You are free to go and ask them how much was rolled over if they didn't send.

ernie4life:


I don't understand why people do fixed deposit with banks when we have investment houses offering better and more juicy rates. why do we find it hard to do a market survey before taking a decision. Even mutual funds offer better yields than fixed deposit and to think there is a thread on fixed deposit in this section.

doomsdayII:

It'll be appreciated if you share us your advice. Everyone is trying to grow please

zamirikpo:
@ernie4life pls wots mutual fund, people cant invest in what they dont know about. enlighten us pls......fixed deposit i know, treasury bills i know.......mutual funds......i dont.....also enlighten us on other credit houses that offer more.....with 0.01% risk like with fd

ernie4life:


I don't understand why people do fixed deposit with banks when we have investment houses offering better and more juicy rates. why do we find it hard to do a market survey before taking a decision. Even mutual funds offer better yields than fixed deposit and to think there is a thread on fixed deposit in this section.

freeman67:


people still invest in fixed deposit because;

1. There already have account with the bank they transact with no need of going through the stress of opening account with the investment house u want to transact with again.

2. There can easy access their money when the need arises. At most 24hrs whether it matures or not and your capital will be safe.

3. when it matures and you don't want to roll over capital and interest will be dropped in your account.

4. All term and conditions are well spelt out, no fluctuations on that particular transaction.


You cannot get all these from investment houses.. The worst of them all is that mutual funds. You can't just liquidate it at will and not all has a guaranteed interest.

ernie4life:


money market mutual funds are a lot more stable than capital market mutual funds.

no 1 it's an investment account not bank account meaning you are not expected to have a minimum balance, and procedures for opening it is same with your normal bank account.

no 2 when you fix your money with an investment house( am not talking of mutual funds) you can always get your money within 24 hours.

No 3 at point of investment you can give instructions that upon maturity your money should not be rolled over automatically.

No 4 all terms are spelt out when dealing with an investment house ( remember they are regulated by SEC) and there is no fluctuations because most of them give you an investment letter showing how much you've invested and how much the exact yield would be upon maturity.

No 5 some mutual funds have a guaranteed interest rate


get the facts right

freeman67:


so what is/are the name of the investment house(s) you propose for the house and what the deals they have?

glamk:
Hello house,
I'm a university graduate currently running a boutique, I need an investor to enlarge the business, it's profit yielding because I travel to Lagos or Onitsha to buy things and resell in a university in d northeast, the competition is low here due to the insecurity. If you are interested, kindly call me on this line so i'll proof everything I need to so you'll be sure i'm for real-09056313676 joy

nitrogen:


Hi, did you just say Northeast? Wow, anyway, am ready to invest, so far returns will be high, what rate are we looking at and how much do u want to raise for the expansion?

Regards.