The best bank in Nigeria for fixed deposit is the bank that though live with the consciousness that other banks refuse to repay fixed deposit before the expiry of the deposit, yet does decide to pay to customers with considerations to emergencies. It is one of the best ways by which individuals and businesses can secure the future. In case you do not an idea what difference is there between fixed deposit and savings account.
Of course, there are ample difference! This is because fixed deposit is a financial platform which is made available by banks to interested customers who are prepared to make profits at a higher rate of interest than someone with a regular savings account. This profit certainly is made over some stated or documented maturity date as agreed between the bank and their customer.
Fixed deposits are high-interest-yielding term deposits offered by banks. The most popular form of term deposits are fixed deposits, while other forms of term deposits are recurring deposit and Flexi Fixed deposits. The latter is actually a combination of demand deposit and fixed deposit.
With regards to length of time however, it is generally believed that the longer the term of deposit, the higher is the rate of interest but a bank may offer a lower rate of interest for a longer period if it expects interest rates, at which the Central Bank of a nation lends to banks (what is termed Repo Rates), will dip in the future. An interest that is re-invested in the fixed account is called Cumulative Fixed Deposit; thus, the interest that comes out at the end of the day accrues at the time of payment to the invested amount on maturity of the deposit at the end of the term.
It is also to be believed that in recent time, banks have found a way of transferring interests accrued on fixed amounts to be credited to customer’s savings account when needs arise to withdraw usually at the end of the term of agreement.
Below are some of the BENEFITS of Fixed Deposit Account Holders:
Having such investment as fixed deposits is such a very profitable idea because majorly and undeniably fixed deposits are helpful and reliable as they make their holders restful without making them keep restless nights in fear of its risks. Fixed deposits offer better financial return than savings accounts, Nonetheless, the benefits of fixed deposit are far beyond just the interest rates:
- Investing in a fixed deposit earns customers a higher interest rate than depositing money in a saving account.
- Customers can avail loans against fixed deposits up to 80 to 90 percent of the value of deposits. The rate of interest on the loan could be 1 to 2 percent over the rate offered on the deposit.
- Residents can open these accounts for a minimum of seven days.
- Tax saving fixed deposits are a type of fixed deposits that allow the investor to save tax under Section 80C of the Income Tax Act.
This article is providing you with the very small list of banks that are considered best for your fixed deposit financial plan. Check below:
Best Bank in Nigeria for Fixed Deposit.
The best bank in Nigeria for fixed deposit is linked directly to its website so you may have enough information about how their fixed deposit account is run and why it is the best:
- First Bank PLC
- Stanbic Bank
- Sterling Bank
- Heritage Bank
- Providus Bank
- Zenith Bank
- Access Bank
- Wema Bank
Each of the highlighted banks qualify to be our best bank in Nigeria for fixed deposit because of the following features and idiosyncrasies:
- Investment period (tenor) is a minimum of 30 days and a maximum of 360 days
- Minimum opening balance is N100,000
- Amount can be terminated before maturity but accrued interest will be forfeited
- Amount can be terminated at customer’s discretion
- Attractive interest rate
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