Top 10 Best Banks for Fixed Deposit in Nigeria

Are you looking for a safe and reliable way to grow your savings in Nigeria? Fixed deposit accounts offer a secure investment option with guaranteed returns over a fixed period. Choosing the right bank for your fixed deposit is essential to maximizing your earnings while ensuring financial stability.

Whether you are a beginner looking to start your investment journey or an experienced saver searching for the best rates, this guide will help you make an informed decision. In this post, we will explore the top 10 best banks for fixed deposit accounts in Nigeria, their interest rates, requirements, and benefits.

What is a Fixed Deposit Account?

A fixed deposit account is a type of savings product where you deposit a specific amount of money for a predetermined period at an agreed-upon interest rate. Unlike a regular savings account, funds in a fixed deposit account cannot be withdrawn until maturity, ensuring disciplined savings while earning interest.

Upon maturity, you can either withdraw your principal and accrued interest or reinvest the funds for another term. The interest rates depend on the deposit amount and duration, making it a flexible yet rewarding investment option.

Requirements for opening a fixed deposit account

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

• Full Name

• Residential Address

• Phone Number

• Email Address

• Valid Identification (National ID card, International Passport, or Driver’s License)

• BVN

• Minimum Deposit Amount

• Chosen Investment Tenure

  
  

Once your account is set up, interest accrual begins immediately and is credited periodically, depending on the bank’s terms.

Not sure which fixed deposit suits your financial goals? Use nairaCompare to find the best option tailored to your needs!

Types of Fixed Deposit Accounts in Nigeria

There are various types of fixed deposit accounts tailored to meet different financial needs. Here are some of the most common ones:

1. Standard Fixed Deposit

This traditional fixed deposit allows you to deposit a lump sum for a fixed period at a predetermined interest rate. It is ideal for individuals looking for stable returns.

2. Flexi Fixed Deposit

Offers partial withdrawal options before maturity while maintaining interest earnings on the remaining balance.

3. Fixed Deposit Plus

Provides higher interest rates than standard fixed deposits but requires a larger minimum deposit and longer tenure.

4. Joint Fixed Deposit

Allows multiple individuals to invest together and share interest earnings based on their contributions.

5. Foreign Currency Fixed Deposit

Available in foreign currencies such as USD, GBP, or EUR, making it ideal for those with foreign currency holdings.

6. Islamic Fixed Deposit

Complies with Sharia law by offering profit-sharing instead of interest-based earnings.

7. Corporate Fixed Deposit

Designed for businesses, offering higher deposit limits and customized tenure options.

Not sure which fixed deposit suits your financial goals? Use nairaCompare to find the best option tailored to your needs!

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 best banks in Nigeria for fixed deposits.

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 rates, 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 ₦10,000 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.

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.

Don't wait! Visit nairaCompare, compare fixed deposit accounts, and start saving! 

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 and 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 its 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, and 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 to earn more. To open a Polaris Wise account, you need a minimum opening and operating balance of ₦10,000.

However, interest forfeiture applies on balances below ₦100,000 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, and 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 circumstances.

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