This post will guide you through on zenith bank fixed deposit interest rate, all you need to know about investing or having in a fixed deposit account with the bank, and also how to calculate the interest rates.
Before I get started, please kindly know that tr fixed deposit interest rate do change every week or biweekly or monthly. What the banks offers this week might be different from what they will offer next week. What the bank offer this month might be different from what the bank will offer next month.
This is how fixed deposit or any other investment is in Nigeria or the world in general.
Before going into zenith bank fixed deposit interest rate, first understand what it is all about even if you’re not a newbie to fixed deposit.
What is fixed deposit account
A fixed deposit account is a type of savings investment account, offered by the bank and non bank financial institution to the public or to the investors, with a high interest rate than the normal savings account.
Fixed deposit account is one of the popular means of investing or investment in Nigeria. Almost all financial institutions are offering fixed deposit account to the general public, and it is a good means of saving and also investing your money here in Nigeria.
At the name implies, fixed deposit. You’re lending your money to the bank for an agreed interest rate. That is to say that banks or non bank financial institution are borrowing money from you, and will pay back at maturity with interest accrued.
This is quite very different from when an individual or a body is borrowing money from the bank or non bank financial institutions, they will give you their rate on interest.
However, in this fixed deposit account, you don’t have a say on the interest rates, the financial institutions will tell you the rate that they are willing to pay for a sum amount of money fixed with them.
For example, 5% interest rate on N2,000,00 fixed with them. Most times these rates are non negotiable just like the zenith bank fixed deposit interest rate.
When you’re borrowing money from the bank or taking a loan, the bank or financial institution will give you their interest rate per month, and usually it is very high compared to when you’re lending money to them.
This is one major reason people don’t go for fixed deposit investment here in Nigeria, the rates are usually very low compared to when you’re lending your money to the bank or financial institution.
How it fixed deposit account works
This is very essential before moving onto zenith bank fixed deposit interest rate.
How does fixed deposit account work in Nigeria?
What do I need to invest in the fixed deposit right here in Nigeria?
Will I receive enough money at maturity having fixed my money into a fixed deposit account.
Some of the questions people tends to ask before going ahead to put their money into a fixed account.
Fixed deposit is the same everywhere but with a slight difference. The difference I’m talking about is the tax attached to the account.
Right here in Nigeria, fixed deposit account attracts a tax fee of 10% and I tell you that it is quite annoying cause I don’t see the reason for that. You’re lending your money to the bank or financial institution, and same time you’re paying tax for it.
Had it been the tax fee is 2% it is quite understandable but rather a whopping 10% which shortens the total amount received for investing in the fixed deposit.
Before going ahead with zenith bank fixed deposit interest rate, kindly know that you will pay a tax fee of 10% on any amount fixed with the bank or financial institution. The tax fee will ve deducted from the total amount received from the investment.
Now is the minimum balance to invest in fixed deposit. This varies from bank to bank or financial institution, however, zenith bank minimum balance is one hundred thousand naira (N100,000) as at the time of writing this post.
The minimum opening amount plays an important role in the zenith bank fixed deposit interest rate. The lower the capital, the lower the interest rate will be, the high the capital the high the interest rates will be.
The last time I inquired from access bank, their minimum amount for a fixed deposit is one million, while fcmb is two hundred and fifty thousand naira.
Again, zenith bank minimum balance for fixed deposit is one hundred thousand naira at this time of writing this blog post. They can chose to increase the amount, or probably decrease the amount.
Before going into zenith bank fixed deposit interest rate, tenors are very important cause it is through the tenors/amount that you’ll know the interest rate for any amount invested in Zenith bank fixed deposit account.
Zenith bank fixed deposit tenors are as follows;
- Thirty days (one month)
- Sixty days (two months)
- Ninety days (three months)
- One hundred and eight days (six months)
From the list above, the maximum number of months for zenith bank fixed deposit is six months, the bank doesn’t offer three sixty days or one year tenor. They are limited to six months.
Zenith bank fixed deposit interest rate
Now back to the question;
What is zenith bank fixed deposit interest rate?
The last rate the bank gave me was 5.75% for a sum amount of one million naira, and for a duration of three months. That’s a lot awful compared to internet rate they told me while trying to get borrow money from the bank.
On top of that, I will pay an extra 10% tax fee on the money fixed in the bank.
The least zenith bank fixed deposit interest rate offered to me was 1.2% for N250,000 for two months, and I wasn’t impressed with the interest rate either.
For the maximum zenith bank fixed deposit interest rate is 9% for a sum amount above N50,000,000. Remember, these rates are as at March 4th 2021 and they do change the rates. However, I will try my best to get the latest interest rates for zenith bank fixed deposit account each month or maybe biweekly.
Right now you have seen a glimpse of zenith bank fixed deposit interest rate, now is the calculation.
Yes, fixed deposit interest rate calculation is pretty much important and you should learn how to do that by yourself. Don’t wait for the bank to do that for you.
How to calculate fixed deposit interest rate for zenith bank
Like I said, this part is very important;
How to calculate fixed deposit interest rate.
Now let’s get started using the zenith bank fixed deposit interest rate of 7.5% for N500,000, and a tenor of three months.
Missybanker invested a sum amount of N500,000 in a fixed deposit account, with a given interest rate of 7.5%, and a tenor of three months. What will be my interest at maturity.
Amount invested – N500,000
Interest rate – 7.5%
Tenor – three months
500,000 x 7.5 ÷ 100 = 37,500
The 37500 will further be divided by 12 and multiplied by 3 (three months).
So it will be 37000 ÷ 12 = 3125
As missybanker is going for a three months fixed deposit, 3125 will be multiplied by 3.
That will be 3125 x 3 = 9375
I said earlier, fixed deposit account in Nigeria attracts a fee of 10%, I will further get a percentage of the 9375.
So it will be 9375 x 10 ÷ 100 = 937.5
The monthly zenith bank fixed deposit interest rate missybanker will receive using the above illustration is 937.5 respectively. When you multiply the 937.5 by three months that will be 2,812.5
So if i invest N500,000 in a fixed deposit account, the total amount I will receive on interest is N2,812.5
I will pay times ten of that amount if I borrow money from the bank for a duration of three months.
The only reason for having a fixed deposit account is that it will help you to save money. As you know the rule, you can’t withdraw the money before maturity else it attract a penalty.
If you have an event that requires savings like wedding or house project, and you don’t want to touch the money, putting the money into a fixed deposit account is lot helpful. In terms of interest rate just like the zenith bank fixed deposit interest rate, it is very poor.
Very awful and that’s why I prefer Treasury bills though they are no longer offering to individuals except for corporate bodies.
One major advantage of fixed deposit account is helping to save money for a project or event. It also gives interest on money fixed though the interest rate is very low in Nigeria.
The disadvantage of fixed deposit account is you can’t withdraw the money before maturity else it attracts a penalty which can even cut down down the money invested.
Here in Nigeria, the interest rate is pretty much low or poor i will say.
That’s all I have to say on zenith bank fixed deposit interest rate in 2021.