A comprehensive guide on fixed deposit interest rate in Nigeria offered by the top Nigerian banks in 2023.
Understand, compare, and choose the best investment option for you.
Fixed Deposit Interest Rate in Nigeria: An Overview of Nigerian Banks in 2023
Fixed deposit rates offer an assured return on investments, making it a popular choice among investors.
When we speak of fixed deposits in Nigeria, the rates are incredibly diverse.
To understand the benefits of these interest rates, let’s dive into the world of Nigerian banking and explore the fixed deposit rates offered by the top Nigerian banks for 2023.
1. Guaranty Trust Bank (GTB)
A prominent player in the banking industry, GTB offers a Fixed/Tenured Deposit account.
This account type is a tenured investment account where a specific amount is invested at a pre-agreed interest rate and tenure. The investment can either be re-invested or returned along with the earned interest amount at the end of the agreed period, which is usually between 30 to 180 days.
An attractive feature of this account is a 4.95% per annum interest rate, plus a 1% bonus interest for customers who maintain a standing deposit order for a year.
2. Access Bank
Next on our list is Access Bank, with its High-Interest Deposit Account.
This account guarantees a fixed interest rate and a fixed maturity date. Your deposits here are safe and can even be used as collateral for a loan.
The interest on this account ranges between 5.25% to 5.45% per annum, allowing a maximum deposit of N50 million.
3. Union Bank of Nigeria
Union Bank stands out in Nigeria by providing a high degree of investment certainty through its fixed deposits. Whether you are looking for short, medium, or long-term investment options, Union Bank offers flexible solutions.
With their fixed deposit accounts, you have the option to reinvest or receive your deposit plus interest after the agreed period.
The bank offers attractive interest rates ranging from 4.2% to 4.5%. The minimum tenor for these fixed deposits is 30 days, and the minimum deposit required is ₦100,000.
If you are considering investing in fixed deposits and want to know more about the fixed deposit interest rate in Nigeria, Union Bank is a reliable choice.
4. Stanbic IBTC
Stanbic IBTC, a bank renowned for its attractive returns, offers a Fixed Deposit Account, perfect for individuals with a lump sum to invest. Depositors can earn interest from periods as short as 30 days to up to a full year, with a withholding tax of 10%.
5. Fidelity Bank
Investors looking for diverse currency options can turn to Fidelity Bank.
It provides fixed deposit accounts in Naira, Dollars, Euros, and Pounds.
The bank offers interest rates as high as 6% for Naira investments and 5% for other currencies, depending on the principal invested.
6. Sterling Bank
Sterling Bank offers a Fixed Deposit account, a well-suited product for individuals and businesses wanting a fixed interest rate over a specific period.
The minimum tenor is 30 days, and investments are renewable upon maturity with an interest rate of 2% – 5% per annum.
7. First Bank of Nigeria
First Bank’s Fixed Deposit account in Nigeria offers a secure and rewarding investment opportunity with a guaranteed interest rate. With this account, you can invest a specific amount of money for a fixed period and enjoy competitive returns.
Whether you choose to roll over the investment or liquidate it with the earned interest amount at the end of the agreed period, First Bank provides flexible options to suit your financial goals.
The Fixed Deposit Interest Rate in Nigeria offered by First Bank ensures that your investment grows steadily. This account is accessible to both individuals and corporate organizations, making it a versatile choice for various investors seeking stability and profitability.
8. United Bank for Africa
With a customer-centric approach, United Bank for Africa’s Fixed Deposit Account is tailored for corporate organisations to maximise their returns for a specific period.
The interest received is not subject to tax and ranges between 3.8% to 4%.
9. Ecobank Nigeria
Ecobank’s Fixed Income Fund seeks to optimize predictable, long-term investments in Africa’s economic growth. This fund also allows
for subscriptions on behalf of children under 18, who can either take over the investment or cash out after their 18th birthday.
10. Polaris Bank
Finally, we have Polaris Bank’s Wise account, a high-yield savings account that combines the features of savings, current, and fixed deposit accounts.
The minimum opening and operating balance is N10,000.
However, interest forfeiture applies on balances below N100,000 or if the withdrawal limit exceeds three times monthly.
In conclusion, the fixed deposit rates among Nigerian banks offer a spectrum of options catering to various investor needs. The diversity in rates provides an opportunity for the investor to select a bank that aligns best with their financial goals.
Frequently Asked Questions
Currently, Fidelity Bank offers the highest interest rates, as high as 6% for Naira investments.
Yes, some banks like Sterling Bank offer negotiable rates on their fixed deposits.
Yes, banks like Access Bank allow the use of fixed deposits as collateral for a loan.
The minimum deposit varies with banks, but for Union Bank, it’s ₦100,000.
Interest earned is not subject to tax in some banks, like the United Bank for Afric