On this blog post is the fixed deposit rates in nigeria 2020, which will help you to know the bank with the best interest rate on fixed deposit account.
LATEST UPDATE 4TH OF MAY 2020
So today i decided to leave my house and go to some banks to make an inquiry based on their fixed deposit rates.
O boy i was highly disappointed at what they offered.
It was very awful and the banks i went to make the inquiry includes;
- Zenith bank
- First bank
The rate zenith bank offered to me for fixed deposit is between 0.5 – 1% on funds between N 100,000 -N 9,900,900 for 30/60/90 days.
First bank and uba offered 0.25 – 3.5% for the same amount, while gtbank offered 0.50 – 4% for the same amount and duration.
I wasn’t pleased with the offer, so i left to check back later.
With time i will update this post with non bank financial institutions which offers such to the Nigerian society.
Before going to the rates, it is good to know and understand what fixed deposit is all about, and how it works.
What is Fixed Deposit Account
For those asking what is fixed deposit account, know that it is a type of savings account, offered by the bank and non bank financial institutions to the public or investors with a high interest rate than the common savings account.
You can as well say that it is a type of account whereby an investor invest money into a financial institution, and can’t withdraw until maturity.
People do complain that the regular savings account has little or no interest at all, so the deposit account come to the rescue but one can’t withdraw the money until maturity else it attracts a penalty.
This penalty can take both the interest and the capital you invested into the bank.
The reason why banks refuses or gives out penalty to an investor that wants to collect the money before maturity is because, the money invested into the bank or non financial institution is been used for loans.
Where do you think banks get the money used in giving out loans to people, it is through this type of savings account and others.
In regular savings account, a bank customer can withdraw the money at any given time which makes it difficult for banks to use it as loans cause the customer can request for his or her money at any given time.
Failure to grant the customer’s request will cause a commotion in the bank.
I always advise people or investors to look for the best deposit rates in Nigeria, and not by the best bank.
Some banks in Nigeria offers poor, average or a good interest rate, short or long term time duration like one month, three months, six months or one year.
Please know that you must not have an account with a bank that you want to fix your money into.
All you need to is to get the bank minimum requirement, go to the bank, request that you want invest in the bank through fixed account, they will give you a form to fill, complete the form, fix or invest your money.
The longer the duration the higher the interest rate. Most banks minimum requirement is N100,000 though the likes of access bank is one million.
I was able to get some banks fixed interest deposit rates, but promises to get more and also update this post with any new changes.
Fixed Deposit Rates In Nigeria 2020
Please note that as at April 19 2020, fixed deposit interest rates are still very much low, which i’m is now caused by the situation we are. After the lockdown and corona brouhaha, let’s see if things will get back to normal.
So there we go and again i only have four complete interest deposit bank rates in Nigeria but i promise to try and complete the list. This rates are as at January 2020.
For better viewing of the tables, if you’re on mobile please switch your browser to desktop view by going to the settings.
Guaranty Trust Bank Rate 2020
Gtbank is one of the banks with list minimum requirement, which starts from N100,000, with term duration of 7 days, 30 days, 60 days and 90 days. Below is the message they sent to me;
Be informed that the minimum amount that can be invested is N100,000.00 and at maturity, funds are automatically rolled over, where there is no instruction by customer to liquidate on Maturity.
More so, the pre-liquidation of time investment prior to maturity date attracts 20percent of the accrued interest as the withholding tax with the bank.
Kindly note that to request for fixed account you are required to fill the investment form at any GTBank branch.
|Range||7 Days||30 Days||60 Days||90 Days||180 Days|
|N1m - N10m||0.15||5.50||5.50||5.50||5.50|
|N10m - N25m||0.25||6.50||6.50||6.50||6.50|
|N25m - N50m||0.25||6.75||6.75||6.75||6.75|
|N50m - N100m||0.50||7.00||7.00||7.00||7.00|
Below is the current gtbank fixed deposit interest rate as at April 2020
|Range||7 Days||30 Days||60 Days||90 Days||180 Days|
|N1m – N10m||0.15||1.00||1.00||1.00||1.00|
|N10m – N25m||0.25||1.00||1.00||1.00||1.00|
|N25m – N50m||0.25||1.00||1.00||1.00||1.00|
|N50m – N100m||0.50||1.00||1.00||1.00||1.00|
FCMB Fixed Deposit Rates 2020
FCMB is one of the bank with good interest on fixed deposit, you can get an interest rate as high as 11%. Be informed that the minimum amount you can invest in deposit is N250,000, and the duration is 30 days, 60 days, 90 days, 180 days and 360 days.
Kindly note that the rate, which is dependent on the tenor and the intend investment amount, is usually communicated at the branch.
FCMB FIXED DEPOSIT
|Range||N250K - N500k||N500k - N1m||N1m - N3m||N3m -N5m||N5m - N10m||N10m - N50m||N50m - N100m||N100m - N250m||N250m - N500m||N500m and above|
Fidelity Bank Rates
Having looked at the interest rate offered by fidelity bank for their fixed account, i will say that it is too poor compared to what others are offering.
The minimum amount required is N101,000 with duration of one month, two months, three months and six months respectively.
Below is the current fidelity bank fixed deposit interest rate as at April 2020
Fidelity Bank Fixed Deposit
|Range||30 Days||60 Days||90 Days||180 Days|
|N101,000 - N999,999||3.00||3.50||3.50||4.00|
|N1m - N4.9m||3.50||4.00||4.25||4.50|
|N5m - N9.9m||4.5||5.00||5.25||5.50|
|N10m - N30m||5.25||5.50||5.50||5.75|
UBA Fixed Rates 2020
Another bank that i have the fixed deposit rates in Nigeria 2020 is united Bank for Africa(UBA) the Africa global bank.
One of the banks that offers a call or demand deposit. Call deposit is another form of investment where there is no duration involved.
The time band is limitless and customer can request for fund at any time. But one disadvantage of it is that it has a small interest rate even if you deposit three hundred million Naira.
A call deposit account has no fixed account period, provides instant access to funds and allows unlimited withdrawals and deposits.
The call deposit also provides the benefits of a savings account through the accrual of interest.
UBA minimum amount required for a deposit starts from N100,000 and it can run for a month, two months or three months respectively.
UBA Fixed Deposit
|Range||Call||30 Days||60 Days||90 Days|
|N100,000 - N9.999m||2.00||5.00||5.50||6.00|
|N10m - N49.999m||2.00||5.50||6.00||7.00|
|N50m - N99.999m||2.50||6.00||7.00||8.00|
|N100m - N99.999m||3.00||6.50||7.50||8.50|
|N200m and above||3.50||7.00||8.00||9.00|
Below is the recent fixed rate for United Bank for Africa (UBA) as March 2020
N100,000 – N9.999M
N10M – N49.999M
N100M – N199.999M
N200 & ABOVE
N100,000 – N9.999M
N10M – N49.999M
N50M – N99.999M
N100M – N199.999M
N200M & ABOVE
Keystone Bank Fixed Deposit Rates
Please note that Keystone bank has increased their minimum requirement to one million naira.
The keystone bank minimum requirement for a fixed deposit account is N1,000,000 just like many others, and they have duration from call, thirty days, sixty days, ninety days and one hundred and eighty days.
According to them, their interest rates are negotiable and you can inquire more from the bank.
Below is their rates as at 7ty May 2020
|Range||Call||30 days||60 days||90 days||180 days|
Note that you can book a fixed deposit on keystone bank mobile app or visit any branch close to you.
Union Bank Fixed Deposit Rates
This is the current union bank fixed deposit interest rates, today being 24th September 2019. The minimum requirement is N100,000 and with a validity up to 365 days or more.
The rates are stated below;
Zenith Bank fixed Deposit Rates 2020
The minimal amount to open the Deposit account with zenith bank is N100,00.00 (one hundred thousand naira).
However, the money can be kept for a period of 30,60,90,180 days and is renewable at an agreed interest rate to be determined by the branch the transaction will be consummated.
Payment of interest is dependent on the tenor and any account holder is qualified to have a fixed deposit with the bank.
In order to open a Fixed Deposit Account you will be required to submit a signed instruction at your preferred Branch (that is if you already have an account) or, if you are not an account owner, you can request for a Fixed Deposit Account Opening Form from any of our Branches.
If you want to fix one hundred to one million naira in Zenith bank for thirty, sixty, ninety days, note that the interest rate you will get is 5.75%. Seriously this is way too poor when i was told about this.
But the worst i’ve seen in the so far is heritage fixed deposit rate, which told me that if i fix one million naira for one hundred and eighty days(180), that the interest rate is 4.25%.
Ecobank Fixed Deposit Interest Rates
Ecobank term/fixed deposit account is an investment account which allows you to invest your available funds for a specified period of time (e.g. 30, 60 or 90 days) at a pre-agreed rate.
The interest rates are negotiable though it starts from one hundred thousand naira.
Below is the current eco bank fixed deposit rate as at April 2020.
First Bank Fixed Deposit Rates 2020
The minimum amount that can be invested in Fixed deposit is N100,000 and the interest rates (fixed deposit) are subject to negotiation at the branch.
|VOLUME( N’ MILLION)||30 DAYS||60 DAYS||90 DAYS||180 DAYS||365 DAYS|
Also note that interest for fixed deposit investment is calculated as (SI=P*T*R/365*100)
To get first bank fixed deposit rate, you’ll need to visit the bank, request for a fixed deposit account and they will issue or inform you of the interest rates, if you’re not okay with the rates calmly disapprove and leave the bank.
From the inquiry that i made, first bank seemed to have similar rates with gtbank.
I will try and get access bank fixed deposit rates though their minimum requirement is one million naira, eco bank, union bank, Keystone bank, Polaris bank, Wema bank, heritage bank, Stanbic IBTC bank and sterling bank.
Below is the current first bank fixed deposit interest rate as April 2020
|Volume||7 day call||30 days||60 days||90 days||180 days||270 days||365 days|
|N100,000 - N1M||0.50%||0.50%||0.75%||1.00%||1.50%||1.75%||1.75%|
|>N5M - N20M||0.50%||0.50%||0.85%||1.25%||1.75%||2.00%||2.00%|
|>N20M - N50M||0.50%||1.25%||1.50%||1.75%||2.00%||2.25%||2.50%|
|>N50M - N100M||0.50%||1.50%||1.75%||2.00%||2.20%||2.50%||2.75%|
|>N100M - N200M||0.50%||1.75%||2.00%||2.25%||2.50%||2.75%||2.75%|
|>N200 - N900M||0.50%||2.00%||2.25%||2.50%||2.75%||3.00%||3.00%|
Stanbic IBTC fixed deposit rates
This is the current stanbic ibtc bank fixed deposit rates as at January 6th 2020.
The bank attracts interest rate for different periods that is 30, 60, 90, 120,150,180 and 365 days.
Also, interest rates which is subject to 10% withholding tax are reviewed on a weekly basis and is open to negotiation (this is dependent on the amount and tenure).
Kindly note that Stanbic IBTC bank minimum opening amount for our fixed deposit is (N100,000) one hundred thousand naira.
Premature termination on fixed deposit attracts a penal rate charge which is calculated on the outstanding number of days to maturity.
This charge will be deducted from accrued interest earned.
Below are Stanbic IBTC bank Fixed deposit interest rate, and so far, they are the best for me.
|NAIRA DEPOSITS||CALL||30 DAYS||60 DAYS||90 DAYS||120 DAYS||150 DAYS||180 DAYS||365 DAYS|
|N1bn & above||3.50||9.50||9.75||10.00||12.25||13.00||13.50||13.75|
Access Bank fixed deposit
Below is the current access bank fixed deposit interest rate as at April 2020, and know that the minimum requirement to open a fixed deposit account with access bank is one million naira.
The have 30, 60, 90, 180, and 365 days plus a call deposit which has a very low interest rate.
How to request for a fixed deposit account in Nigeria
There are some basic thing that you as an investor should look into before agreeing to fix your money in the bank or any other financial institution, they are;
- How reliable is the financial institution
- The interest rate offered
- The duration offered
- Do they offer demand deposit or call deposit
- If they offer rollover on request
After you’re done with the above questions and going through the current fixed deposit interest rates in Nigeria, head to any bank or financial institution of your choice and request that you want to open a fixed deposit account.
The bank will lecture you a bit on their do’s and don’t and after which they will issue a form for you to fill.
You will have to state the amount that you want to invest, the duration you want it to run. For me i always prefer a maximum of six months and least three months.
But if you know that you won’t be tempted to request for a withdrawal or cancelation before maturity, then go for the one year plan and if they offer it.
Complete the form, give it back to the customer service representative and make payment. You can decide to payment in cash or the bank withdrawing the stated amount from your bank account.
When it matures, the bank will pay both the amount you fixed and the interest accrued straight into your account without delay.
How to calculate fixed deposit interest rate in Nigeria 2020
This is one of the basic thing that you should when planning to fix your money in the bank, how to calculate the interest rate on fixed deposit in Nigeria.
I will use fcmb fixed deposit rate. N500,000 for 360 days(one year) with an interest of 7.5%. So let’s do the calculation and see how much you will if you go for this.
500,000 × 7.5 ÷ 100 = 37000
We will further divide 37000 by 12 months in order to get the monthly interest rate.
So it will be 37000 ÷ 12 = 3125
The money which will be fixed for twelve months(12) and that is one year, we will multiply 3125 by 12.
3125 × 12 which gives us 37500 respectively
It still doesn’t end here, fixed deposit rate in Nigeria has a tax fee of 10%, so we will deduct 10% from the 37500.
37500 × 10 ÷ 100 = 3750
So N3750 is the monthly interest rate you will be getting if you fixed N500,000 on fcmb. For 12 months, you will get a total interest rate of N45000 for N500,000 you fixed with fcmb.
This is one of the reasons that people don’t like to go for fixed deposit, imagine fixing a N500,000 for a year and getting only N45000 in return.
Imagine borrowing such amount from fcmb and leaving it for 12 months, you will pay times 20 of forty five thousand naira.
Fixed deposit interest rate for January(s) is usually very low or way too poor, you can wait till February for a better offer.
Stanbic ibtc bank has the highest fixed deposit interest rate in Nigeria as at 2020 so far.
Read Also How to save money as a student
This is where i will end it on fixed deposit rates in Nigeria 2020, your question, inquiry or suggestion are highly welcomed.