When you want to open a bank account, there are different types you can go for. Often most people go for Savings and Current accounts as these are the most common. Nevertheless, this article will be of assistance to you if you want to create a fixed deposit account. You’ll find out the best banks for fixed deposit in Nigeria. First of all, let’s learn a little about fixed deposit accounts.
What is a fixed deposit account?
Fixed deposit accounts are special types of accounts that let you deposit money without being able to withdraw until a maturity date. As the account holder, what you get in return for not touching your money until the said date is an interest. The interest rate here is usually high, much higher than your regular interest rates with savings or current accounts.
With a fixed deposit account, the longer the duration of your maturity date, the higher the percentage of profit involved. You can maintain a fixed deposit account for up to 10 years. Nevertheless, you have the option of rolling over your money, to reinvest in another fixed deposit when it’s mature for withdrawal or you could just withdraw and take your profit.
The requirements for opening a fixed deposit account depends on the bank you’re banking with. It’s important to go for the best banks because these are the banks that offer the highest interest rates. With that, here are the best banks for fixed deposit in Nigeria.
1. First Bank
First Bank fixed deposit accounts can be maintained for a minimum of 30 days (1 month) and a maximum of 360 days (1 year). The minimum amount for opening a fixed deposit account with First Bank is N100,000 (One Hundred Thousand Naira Only). First Bank interest rate for fixed deposits is a very attractive one as you can get up to 30% if your tenure exceeds 90 days. Also, the investment is very flexible and you can apply to take your money even if it’s not up to its maturity date but, you won’t take any profit.
GTBank is one of the best banks in Nigeria. With GTBank, you can open a fixed deposit account for a minimum of 30 days (1 month) and a maximum of 180 days (about 6 months). When you create a GTBank fixed deposit account, you get access to different other GTBank online channels without having to pay for it. You get up to 3% of your money as interest with a GTBank fixed deposit account. Unlike most banks, GTBank has a fixed rate for fixed deposits. The duration of your tenure nor amount doesn’t matter.
United Bank For Africa (UBA) offers risk free returns for fixed deposit investments. The investment tenure ranges from 30 days (one month) to 180 days (6 months). UBA didn’t make their fixed deposit rates public. Nevertheless, the rate ranges depending on the duration of your investment. It’s easy for you to reinvest your money along with the profit gained at the end of the investment tenure. Also, when you get paid, you are paid in full as your money isn’t subject to tax. All fixed deposits with UBA secure and you get paid at the exact time it matures.
4. Access Bank
From Access Bank, you get the most flexible fixed deposit investments. The interest rates are relatively high because the higher your investment, the higher the profit you’ll make. When you make a fixed deposit for up to a year, you get daily returns credited into your account and you can withdraw these returns every month. You don’t have to wait till it’s the end of the year. For N100,000 investments, you get 0.5% interest. For investments up to N250 million, you get up to 2.5%. Your investment can be from a month to a year.
5. Zenith Bank
Zenith Bank offers fixed deposit accounts as short term investments. You have the flexible of pitching your fixed deposit between 30 to 90 days. The rate to be paid is fixed and Zenith Bank offers some very competitive rates. You can start a fixed deposit account with Zenith Bank with just N100,000. However, you can withdraw your money before the maturity date. If you do that, you’ll be charged 20% of the amount you’ve invested or a flat N2,000 fee if the 20% is less than N2,000.
6. Sterling Bank
Sterling Bank’s fixed deposit rates are optimized to ensure you get good value for any money you invest. You can set your maturity date to be no earlier than 30 days and at the end of the tenor, you can choose to rollover to continue investing. Sterling Bank’s fixed deposit rates are competitive but most importantly, they are negotiable. Once your money matures, you get paid your savings along with the interest as fast as possible. Furthermore, as a Sterling Bank fixed deposit investor, you’ll receive steady investment advice.
With FCMB, you get access to interesting fixed deposit rates. You can pick any maturity date that’s most convenient for you and, you’ll know the exact amount you’ll receive at the end of the day. Interestingly, the requirements to register for a fixed deposit account with First City Monument Bank isn’t much. They are the same basic requirements you need to open a regular savings account.
If you would like to get some returns on your money, then a fixed deposit account is one of the best options you’ve got. All major banks in Nigeria offer fixed deposit accounts so creating one isn’t very difficult. However, to ensure you get the most out of your investment, you need to register with a bank that offers high interests. This is why I’ve listed out the best banks for fixed deposit in Nigeria to help you pick the best ones.