Fixed Deposit Account and the Benefit| This article contains full details on how to open Fixed Deposit Account in any Commercial Bank of your choice in Nigeria and as well as its benefits. Read through.
In most cases, some people opening a bank account for opening sake just because they want to put in money for safety or security not knowing that by doing, they can also gain interest in their saving.
A fixed deposit is an investment with a specific amount invested at an agreed interest rate and tenor. All banks in Nigeria offer this investment opportunity, however the rates you get when you invest in one bank may differ from what you get from another.
- Fixed deposit rates for most Nigerian banks can earn between 7% and 12% depending on how much you have.
- The more money you have available to invest, the higher your return.
- For example, to get up to 12% you might have to invest in millions of naira.
Opening a Fixed Deposit Bank Account attract some interest in most of the commercial bank like:
- Zenith Bank
- First Bank
- Access Bank
- FCMB Bank
- Union Bank
- Guarantee Trust Bank
- Sterling Bank
Fixed Deposit Account and the Benefit:
In a deposit account, the bank holds the credit balance (as the account cannot by its nature be overdrawn) under obligation to repay it to the customer but to no one else,
upon personal application after a stated period notice and the bank pays an agreed interest to the customer on his/her balance.
Usually, references are not taken when a deposit account is opened unless:
(1) the account is opened with the lodgement of a cheque
(2) there is the likelihood of the lodgement of a cheque in the future.
Requirement needed to Fixed Deposit Account:
- Filled fixed term deposit form which will be provided by the bank.
- Valid means of identification (National ID, Passport, Driver’s license).
- Utility Bill of Applicant (water rate, tenement, rent receipt).
- Two passport photographs.
- Customer investment advice.
How to Calculate Interest on Fixed Deposit:
Fixed deposit investments are usually calculated using simple interest, which means the key elements to take note of include; Principal, tenor and rate.
If Mr Adeyemi invests N1,000,000 in fixed deposit with a Nigerian bank for a 30 day tenor and the bank offers 7%, how much will he make after 30 days?
Principal – N1,000,000
Rate – 7%
Tenor – 30 days
= 1,000,000 x 0.07 x 30/365 = 5753.425.
The interest on this investment will be N5753.425.
- Current Account and the Benefit Click here
- Fixed Deposit Account and the Benefit Click here
- Saving Account and the Benefit Click here
- Deposit Account and the Benefit Click here
Meanwhile, we have listed the instruction code of all banks that can be used to transfer money to other banks.
- Transfer Code of All banks Click Here
- Bank Location in Nigeria Click Here
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