Top 10 Best Banks for Fixed Deposit in Nigeria

Are you looking to invest your money in Fixed Deposit Accounts in Nigeria? Choosing the right bank is crucial to ensure maximum returns and a hassle-free experience. In this article, we have compiled a list of the top 10 best banks for Fixed Deposit in Nigeria.

Whether you are a beginner or an experienced investor, this guide will help you make an informed decision.

What is a Fixed Deposit Account?

A fixed deposit is a savings product that allows you to earn interest on your money for a fixed period of time. The interest rate you earn will depend on the term of your deposit and the amount of money you invest.

When your fixed deposit matures, you will have the option to withdraw your money or reinvest it. If you choose to withdraw your money, you will be paid the principal amount plus the interest that you have earned.

Requirements for opening a fixed deposit account

To open a fixed deposit account in Nigeria, you will need to provide the following information:

1. Name.
2. Address.
3. Phone number.
4. Email address.
5. National ID card or passport.
6. The amount of money you want to invest.
7. The term of your investment.

Once you have opened your account, you will start earning interest on your money immediately. The interest will be credited to your account on a monthly basis.

Types of fixed deposit accounts in Nigeria

There are various types of fixed deposit accounts available in Nigeria.

These accounts help individuals to invest their money and differ in terms of duration, interest rates, and other features.

Some common types of fixed deposits in Nigeria include.

● Standard Fixed Deposit

This is the most common type of fixed deposit account where you deposit a specific amount for a fixed period of time. The interest rate is predetermined and remains constant throughout the tenure.

● Flexi Fixed Deposit

This type of fixed deposit allows you to withdraw a portion of your funds before the maturity date without incurring penalties. It offers flexibility while earning interest on the remaining balance.

● Fixed Deposit Plus

Fixed Deposit Plus is a type of account that provides higher interest rates compared to standard fixed deposits. However, it usually requires a higher minimum deposit amount and longer tenure.

● Joint Fixed Deposit

This type allows multiple individuals to open a fixed deposit account together. The interest earned is distributed among the account holders according to their share of the deposit.

● Foreign Currency Fixed Deposit

Some banks in Nigeria offer fixed deposit accounts in foreign currencies such as US dollars, British pounds, or euros. This can be beneficial for individuals who have foreign currency holdings and want to earn interest in that currency.

● Islamic Fixed Deposit

Islamic banks in Nigeria offer Sharia-compliant fixed deposit accounts. These accounts follow Islamic principles, such as not charging or paying interest. Instead, profits are generated through sharing income from permissible activities.

● Corporate Fixed Deposit

Banks also offer fixed deposit accounts specifically designed for corporate entities. These accounts have features tailored to meet the needs of businesses, such as higher deposit limits and flexible terms.

10 Best Banks for Fixed Deposit in Nigeria

Before opening a fixed deposit account, it is important to note that specific terms and conditions, including minimum deposit amounts, interest rates, and tenure, may vary between banks and financial institutions in Nigeria.

It's advisable to check with individual banks for the latest information on their fixed deposit offerings.

Below are some of the top best banks for fixed deposits in Nigeria.

1. United Bank for Africa

United Bank for Africa’s Fixed Deposit account is suitable for short, medium, or long-term investments, offering certainty and security. With a minimum deposit requirement of ₦100,000, the account provides an annual interest rate of 8%.

The advantages of UBA's Fixed Deposit Account include higher interest rates, fixed returns, flexible tenure options, secured funds, and automatic renewal. However, there are also some disadvantages, such as fixed interest rate, inflation risk, limited flexibility, and the minimum deposit requirement.

2. DLM Asset Management Limited

DLM Asset Management Limited offers a Fixed Income Fund account with a minimum investment of N10,000. This account promotes a savings culture by allowing investors to top up with N10,000 at any time. Withdrawals after three months do not incur penalty fees, and there are no hidden charges.

The account offers an annual interest rate of 15%. The benefits of DLM's Fixed Income Fund include investment opportunities in private equity, real estate, and capital markets, an experienced team, personalized service, and in-depth knowledge. However, there are drawbacks such as limited liquidity, potential for losses, and management fees that reduce investor returns.

3. First Bank of Nigeria

The First Bank of Nigeria’s Fixed Deposit Account has a minimum savings amount of ₦10,000 and offers an annual interest rate of 8%. The advantages of First Bank's Fixed Deposit Account include guaranteed returns, flexible terms, easy account opening, and high interest rates. However, there are limitations on liquidity, early withdrawal penalties, and it may not be suitable for all investors.

4. Globus Bank

Globus Bank offers Fixed and Tenured Deposits, allowing customers to place cash with the bank for a set period of time. The account can be opened with a minimum sum of ₦10,000 and a savings duration of three months, providing an annual interest rate of 7%.

What you stand to gain from Globus Bank's Fixed or Tenured Deposit include guaranteed returns, flexible terms, easy account opening, and high interest rates. However, there are downsides such as limited liquidity, early withdrawal penalties, and it may not be suitable for investors needing short-term access to their money or high levels of growth.

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5. Zenith Bank

Zenith Bank offers a short-term investment called Zenith Bank Fixed Deposit, which has an agreed or fixed rate with a tenor of 30-90 days. It provides competitive interest rates for customers saving towards future projects. The account can be opened with a savings amount of ₦10,000 or more and offers a yearly interest rate of 7%.

Benefits of Zenith Bank Fixed Deposit include higher interest rates, fixed returns, flexible tenure options, security, and automatic renewal. However, there are disadvantages such as locked-in funds, a fixed interest rate, inflation risk, limited flexibility, and a minimum deposit requirement.

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6. Sterling Bank Plc

Sterling Bank Plc offers a long-term investment account called Sterling Bank Fixed Deposit, which provides a competitive rate over a period of not less than 30 days. Customers can also choose to rollover their investment at the end of the agreed tenor. The account can be opened with a minimum amount of ₦100,000 and has an annual interest rate of 7%.

The advantages of Sterling Bank Fixed Deposit include guaranteed returns, flexible terms, easy account opening, high interest rates, and tax benefits. However, there are limitations on liquidity, early withdrawal penalties, and it may not be suitable for all investors.

7. FCMB

FCMB (First City Monument Bank) offers a fixed deposit account with competitive interest rates ranging from 7% to 8% per annum. With a minimum deposit of N10,000 and a maximum deposit of N500,000,000, customers have flexibility in choosing their investment amount.

The tenure options range from 1 month to 3 years, allowing customers to align their investment with their financial goals. Additionally, FCMB is a member of the Nigeria Deposit Insurance Corporation (NDIC), providing deposit insurance coverage up to N500,000 for added security. While FCMB's fixed deposit account offers guaranteed returns, it's important to note the limited liquidity and potential penalties for early withdrawals.

8. GTBank

GTBank's Fixed and Tenured Deposits offer individuals and businesses an opportunity to save cash for the future on a long-term basis. The account provides flexible terms, allowing you to choose a tenure ranging from a minimum of 30 days to a maximum of 180 days. Moreover, GTBank's fixed deposit account grants access to all of their electronic channels at no additional cost.

Some of the advantages of this account include guaranteed returns, flexible terms, ease of account opening, high interest rates, and access to GTBank's electronic channels. However, it's important to consider the limitations, such as limited liquidity, early withdrawal penalties, and the fact that it may not be suitable for all investors.

9. Stanbic IBTC

Stanbic IBTC's Max Yield Account helps accelerate your savings while providing the option of partial withdrawals for emergencies along the way. Opening this account requires a minimum balance of ₦10,000, and the maximum investment amount is ₦5,000,000.

The annual interest rate for the Max Yield Account ranges from 8% to 11%. The advantages of this account include guaranteed returns, flexible terms, the option to open an account online, high interest rates, access to all Stanbic IBTC electronic channels, and bonus interest of up to 0.5% on your savings. However, the account also has limitations, including limited liquidity, early withdrawal penalties, and it may not be suitable for all investors.

10. Polaris Bank

Polaris Wise, a product offered by Polaris Bank, is a 3-in-1 high-yield savings account that combines the features of a savings, current, and fixed deposit account. This account encourages you to save more in order to earn more. To open a Polaris Wise account, you need a minimum opening and operating balance of N10,000. However, interest forfeiture applies on balances below N100,000 or if the withdrawal limit exceeds three times the monthly maximum.

The advantages of Polaris Wise include high interest rates, flexible terms, easy account opening, no minimum balance requirement, a free ATM card, internet banking, and mobile app access. On the other hand, the account has limitations, such as limited liquidity, early withdrawal penalties, and it may not be suitable for all investors.

Before opening a fixed deposit account, it is important to compare options in order to select one that’s best suited to your needs and circumstance. nairaCompare has a wide range of fixed deposit options you can compare and choose from.

Visit nairaCompare to know more about fixed deposits, compare options and open an account.