What does fixed deposit mean?
A fixed deposit is a kind of bank service also called FD which grants you a guaranteed interest rate which is different from other types of deposits. Since you know exactly how much money you’ll receive in the end, you are expected not to withdraw your funds before the expiration the agreed time of your fixed deposit.
Fixed deposits vary in the length of time. The shortest possible term is a single month, while the longest can go for five years max. What differentiates FD from other kinds of saving investments, is that you do not receive your interest every thirty days, but only once when your contract ends.
Although, there are small interest rates attached, there are also several benefits of this type of investment if you choose to setup a fixed deposit account which include:
- Helps you save money to avoid reckless spending your savings.
- Offers better interest than a normal savings account.
- You are sure of your interest with no risk involved.
- You determine how long you open your deposit.
- You can choose to open several fixed deposits at different banks and reap the interests alone.
Fixed deposit interest rates in Nigeria
Let’s say you’ve decided to invest your money in a fixed deposit, but where do you go from here? It’s rather simple. You take a list of the biggest, most reliable banks in the country, and crunch the numbers to see which one of them offers the highest interest rates. Lucky for you, you can find a list of the Top 6 Nigerian banks with the best interest rates below:
6. FD interest rates at First Bank
The First Bank of Nigeria is one of the oldest and most reliable options on the market. Even though they don’t offer the best interest, you can be 100% sure that they will pay you back every last Naira.
For a sum of half a million you can enjoy the following rates:
- 2.5% for one month
- 2.7% for two months
- 3.0% for three months
Important notice: In some of the banks present on this list, the rate percentage depends on the amount you are ready to deposit. The more you invest – the higher the interest.
5. FD interest rates at Stanbic IBTC Bank
The fifth place for goes to Stanbic. If you choose to go with this option, you’ll enjoy marginally better rates, although the numbers still aren’t as impressive as you would expect. For an investment of half a million Naira, you’ll be presented with:
3% for one month3.25% for two months3.5% for three months
Stambic IBTC Bank pays 0.5% interest on 180 days tenor on N1million as at 10/3/2020
4. FD interest rates at Wema Bank
Just outside of the Top 3, we have the Wema Bank. This is one of the oldest banking establishments in the country, having lived through numerous incarnations and still going strong. For an average deposit of half a million Naira you’ll receive the following:
- 3% for one month
- 3.25% for two months
- 3.75% for three months
3. FD interest rates at Access Bank
The third place goes to the Access Bank, which promises rates almost twice as good as the ones offered by First Bank. For an average deposit of half a million Naira you’ll receive the following:
- 4% for one month
- 4.35% for two months
- 4.5% for three months
2. FD interest rates at GT Bank
For an investment of half a million Naira, you’ll be offered 4.5% interest no matter the period of time you sign up for. While GT offers the same rates as the previous member of our list, it gives an equal opportunity to all deposit lengths.
1. FD interest rates at Sterling Bank
The honorary first place goes to Sterling Bank. As of our last available data, Sterling can offer you the best interest rates in Nigeria. If you choose to open a deposit with them, you’ll be offered:
- 5% for one month
- 5.25% for two months
- 5.5% for three months
Now you know everything about fixed deposit interest rate in Nigeria, and know which bank to visit to get the best offer. Remember that the banking industry is an ever-changing system, so be on the lookout for any new opportunities. Consider sharing this article with your friends, and good luck with your investment!
