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How To Invest In Fixed Deposit

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As the name implies, investing in fix deposit is when you make a bank deposit for the purpose of making money from it through the interest it yields over a period of time usually a year or less.

A fixed deposit is an investment that you make with a specific amount invested at an interest rate and tenor (duration) that is agreed on.




This investment avenue is available in all banks in Nigeria at different rates which vary from one bank to another. So, the rates for a bank deposit for bank A may be different from the rate for bank B.

The good thing about fixed deposit investment is that the investment period Is anything between 30-360 days. This means you don’t have to wait till 360 days to claim your interest, you may go for a short-term fix deposit investment if you need to be liquid within a short period of time.




However, if you decide to terminate your investment before maturity, you will forfeit the total accrued interest not earned. This implies that only the portion of the interest earned in the period that your money was in the bank is what will be paid to you.

Again, you may decide to terminate your fixed deposit investment at your own discretion.

Another amazing thing about fix deposit investment is that with N100k, you could invest. The minimum opening balance for this investment is N100,000.



The not too cool side of fixed deposit investment is that the interest rates are not so fantastic. Interest rates for fixed deposit is generally not as high as that of Treasure Bills.

With the advent of banks’ treasury bills mobile application, you are only required to fill a signup form once.

Some of the advantages of investment in fixed deposits are:

Investment in fixed deposits gives you an assured return. The returns are generally above and beyond the returns offered by a savings bank account.


Fixed deposits provide you with the flexibility of fixing your money over a period of time. Yes, fixed deposits come up with n-numbers of tenure duration – usually from 30 days to 5 years. However, every bank has their own tenure and interest rates. You can find out in your bank about their rates and all.


Fixed deposits are the best investment option when considering low-risk, long-term financial goals of your life.
To invest in a fixed deposit, you will approach your bank and inform them. You will be required to submit some basic documents similar to those you used to open your normal savings or current account.


Fixed deposit rates for most Nigerian banks can earn you between 8% and 12% depending on how much you are investing in. The more money you have to invest, the higher your return.


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