Which Nigerian Banks Have Best Interest Rates on Fixed Deposit?

There are thousands of Nigerians who want to put their money into fixed deposits for returns; however, the majority of them do not know how, or they are tired of what they call the low interest rates that traditional banks offer.

Quick fact: FairMoney, PiggyVest and PalmPay offer the highest interest rates on fixed deposits in Nigeria.

But the coming on board of fintech banks into the banking sector in Nigeria has changed the game. In fact, some of the traditional banks used to offer what some people described as poor interest rates, which were then around 2% to 5%.

Because of the competition and the drive to attract more fixed deposit investors, the traditional banks have adjusted their interest rates to remain afloat and compete favourably with the new fintech banks that are causing disruptions in the banking sector.

Interest rates of traditional vs FinTech banks

Even as the traditional banks are trying to compete with fintech banks, the interest rates they offer on fixed deposits are still not comparable to what fintech banks offer.

For instance, Access Bank offers 12% to 15.5% on fixed deposits, depending on the tenor and market conditions. A 30 to 90 days tenor is approximately 12%; a six months tenor falls within 14% to 14.5%, while a 12 months tenor is approximately 15.5% per annum.

In comparison, FairMoney offers a 28% interest rate on its fixed deposit product, “FairLock”. That’s almost double the interest rate of Access Bank per year.

Similarly, to enjoy the benefits of a fixed deposit at First Bank of Nigeria (FBN), a customer will have to deposit a minimum of N100,000. On that amount, the interest rate on the fixed deposit is pegged at 7% to 9.5%.

Conversely, PiggyVest offers 20% per annum as an interest rate on its SafeLock, that is more than twice what First Bank offers.

Which bank should I fix my money with for the best interest rates?

If you are liquid or you have money you may not need for at least three months, it isn’t a bad idea to put it in a fixed deposit to enjoy some of the competitive interest rates fintech financial service providers offer in Nigeria.

From INGOMEDIANG’s research, top Nigerian FinTech with Locked Saving Products are:

1) FairMoney 

• Product name: FairLock
• Interest: up to 28% per annum
• Insurance status: Insured by the Nigeria Deposit Insurance Corporation (NDIC)

2) PiggyVest 

• Product name: SafeLock
• Interest: up to 20% per annum
• Insurance status: No (but PiggyVest funds are held in commercial banks that are issued by the NDIC)

3) PalmPay 

• Product name: Fixed Savings
• Interest: up to 20% per annum
• Insurance status: Insured by NDIC

4) OPay 

• Product name: Fixed Money
• Interest: up to 18% per annum
• Insurance status: Insured by NDIC

5) Moniepoint

• Product name: Locked Savings
• Interest: up to 16% per annum
• Insurance status: Insured by NDIC

6) Kuda 

• Product name: Fixed Savings
• Interest: up to 15% per annum
• Insurance status: Insured by NDIC

Conditions

There is a 10% withholding tax on interest earned on fixed deposits in Nigeria. Note that funds terminated before maturity may not get the interest or may forfeit the accrued interest.

The above banks are certified by the Central Bank of Nigeria (CBN), insured by the Nigerian Deposit Insurance Corporation (NDIC), and regulated by the Securities and Exchange Commission (SEC). As such, your deposits are safe and secure. However, you must always check the status of any bank on the official portal of the CBN or SEC for updates.

Disclaimer: This is not financial advice, nor is it a recommendation, but rather investment content for public consumption. Kindly talk to your financial advisor for investment-related ventures. Read our terms of use for information on this site.