How to make money with a Fixed Deposit Account - Tips to Make Money in Nigeria

Posted by Felix Okoli on Tuesday March 27, 2012 10:27:33:

We've talked about making money with a savings account in Nigeria, now let's talk about a banking product that pays much higher than savings. It is called a Fixed Deposit Account.

What is a Fixed Deposit Account? It is an account that is mostly held with a bank that allows you to lock down your money while at the same time get higher returns for doing so.

How do people make money with their Fixed deposit account?
It is quite simple. By means on the higher interest it pays which is better than basic interest in savings. If you have a lot of amount in your savings account that would probably remain unused for a period of about 3 month,s it's better to just lodge it to a fixed deposit account that will earn you more.

Interest on Fixed deposit account
In Nigeria, the interest on savings account is a little bit higher than savings as it can be as high as 10% p.a your capital which you leave untouched for the agreed period of time which could be 7 days to 6 months. How this works is that assuming you have invested N200,000 into a Fixed deposit account that pays an interest rate of 10% p.a, it means that for every year you leave at least N200,000 with your bank, you will earn N20,000 which is 0.1*N200,000.

Let me give an example:
Assuming you have a fixed deposit account with Access bank in Nigeria with the following details

Capital: N200,000
Interest on fixed deposit: 10% p.a
Time: 3 months

Your income from that fixed account which remain untouched for that period will be:

(0.1 * 200,000 = N20,000)*3/12

which will give us N5000 for the 3 months or 1,666 every month. It may look small but it is much higher than what you can earn from savings account.

So if you want to be making N200,000 every year from a fixed deposit account, then maybe you should invest N2,000,000 into that fixed deposit account. So if you really have over N500,000 in your savings account and not really hoping to use in in the next 3 months, then better for you to move it to a fixed deposit account for the time being.

Things to note when operating a fixed deposit account
- Inquire about the terms and conditions
- Get to know the interest rates on fixed accounts and compare with other banks.
- Ask about the minimum opening capital and if rates increase with more capital. You can negotiate if you have more capital.

Steps to open a Fixed Deposit account
- Ensure you already have funds in a savings account
- Go to your bank and ask them for procedures involved in opening a fixed account and documents required.
- Write an application or fill the application form and understand the terms of service

Comments:

Re: How to make money with a Fixed Deposit Account Reply by Samnelson on Saturday May 12, 2012 at 23:57:44:

My mentor u too much God wil surely bless u sir. More greece to ur elbow.

Re: How to make money with a Fixed Deposit Account Reply by uchoke ojor innocent on Saturday July 14, 2012 at 10:33:30:

Thank U sir for all U Done to help the people to understand the difference between saving account and fixed deposit account I personally appreciate ur efforts and courage. Once again thank U sir.

Re: How to make money with a Fixed Deposit Account Reply by Odiba Omoche on Saturday August 11, 2012 at 21:38:9:

Excuse me sir. Do we really have banks in Nigeria that can pay as high as 10% on a fixed deposit of N 200,000.00? My experience with GTBank tells me they offer about 6.75% for such an amount.Plus wen u factor in inflation(which is about 11.5%-Febuary figure), then u'll realise u're loosing money real time. But thanks a whole lot for ur enlightenment cos a lot of Nigerians do not even know if any thing like fixed deposit exists.

Re: How to make money with a Fixed Deposit Account Reply by Japhet Saater Tyonum on Wednesday August 15, 2012 at 23:23:46:

Tnk u sir 4 d wondaful work u have done so far. Pls sir, if I have to invest in a fixed deposit a/c they will be an agreement b/t me and d bank at a particular period (e.g 3,6,12months) of time or hence is after 3 months I can claim d returns at anytime?

Re: How to make money with a Fixed Deposit Account Reply by prince lucky ubani on Sunday January 13, 2013 at 6:57:41:

Thank u sir for ur enlightenment,but for how many month can someone fix he's or her money,is it based on month or years,thanks sir.

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Sunday January 13, 2013 at 6:57:41:

You can fix it for 3 months, 6 months or 1 year. It depends on what you and your bank agree to.

Re: How to make money with a Fixed Deposit Account Reply by eman on Thursday February 21, 2013 at 24:5:40:

pls sir can i be paying into that same fixed account

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Thursday February 21, 2013 at 24:5:40:

I think you can.

Re: How to make money with a Fixed Deposit Account Reply by gbenga on Tuesday April 23, 2013 at 20:18:5:

Please, I don't understand. Somebody mentioned inflation rate earlier-do you have to consider this when going for fixed deposit investment? Please, explain.

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Tuesday April 23, 2013 at 20:18:5:

Inflation rate is something that rises and falls so its not fixed. A fixed deposit account would still give you a better value for your saved money, even in times of inflation and you should know that not all banks pay the same rate. Some of these new generation banks pay higher interest on fixed deposit than others e.g. Access bank, Diamond bank and so on.

Re: How to make money with a Fixed Deposit Account Reply by Kingsley on Saturday August 31, 2013 at 8:19:45:

Sir thank u so much u have do much u jst gve me another method of makeing money.may God straight ur way

Re: How to make money with a Fixed Deposit Account Reply by MBAM ADELINE on Saturday October 26, 2013 at 19:44:3:

Pls. Sir, how can i increase my fixed deposite account if i want to?

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Saturday October 26, 2013 at 19:44:3:

You can probably cancel the first one and then add funds and open a new one.

Comments:

Re: How to make money with a Fixed Deposit Account Reply by J K on Saturday October 25, 2014 at 10:5:36:

Sir pls which bank is currently paying High rate intres on fixes deposite account now

Re: How to make money with a Fixed Deposit Account Reply by frank edet on Wednesday October 29, 2014 at 9:25:27:

this are true and the real Nigerians talking . sincerity in the house. ...thank you all

Re: How to make money with a Fixed Deposit Account Reply by Austine I. on Wednesday December 17, 2014 at 11:27:35:

Pls I ve N200,000 in my saves account and i heard of fixed Deposit account that it pay higher without you labour rather allowing your money do the labour. so i want someone to calculate for me how much will be my profit at the end of 3months if i should invest it

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Wednesday December 17, 2014 at 11:27:35:

Well, if you invest N200,000 at an interest rate of about 8%, it will earn you an additional N4000 after 3 months

Re: How to make money with a Fixed Deposit Account Reply by yemi on Thursday January 22, 2015 at 18:53:45:

please can you mention banks that can allow 3months fixed deposit with 200,000

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Thursday January 22, 2015 at 18:53:45:

First bank allows that.

Re: How to make money with a Fixed Deposit Account Reply by uche on Sunday July 5, 2015 at 21:47:11:

i have 500,000 in my savings account with first bank and i want to invest it in fixed deposit account.what we be my reward?

Re: How to make money with a Fixed Deposit Account Reply by Felix Okoli on Sunday July 5, 2015 at 21:47:11:

You should get at least 7% per annum for it.

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