Which is the best account for a fixed deposit – GTBank or Firstbank?

Last month, I happened upon some money from an old investment which had matured. Rather than have it collect “one one naira” in my standard savings account, I decided not to be the fly that follows the corpse to the grave, and put it in a fixed deposit.  Fixed deposits are a very popular investment option in Nigeria, and you’ll hear about them 8 times of out 10 if you do happen to ask for advice regarding how to invest money. The attraction to this sort of investment is that returns are guaranteed, and the duration of your investment is flexible. We probably like this sort of investment because they help us mitigate risks – in a country where nothing is guaranteed, we don’t tend to tie money down in long term investments and fixed deposits are the perfect solution to this investment problem. In the course of my search for a decent return on my investment, I “burnt” at least N5,000 in credit, calling banks and waiting in queues for information, and was only able to reasonably compare two banks – GTBank and First Bank.

What is a fixed deposit?

A fixed deposit is a lump sum deposited with a bank for a varying period, in exchange for interest.

How to put your money in a fixed deposit:  You will need to have an existing account with the bank of your choice, and then you deposit the sum into this account. You will then need to inform your bank of your intention to “fix” the said sum for “X” number of days. It is very important that before you make your decision, that you shop around for the best rates. You are not obliged to fix your money with your existing bank, just because you bank with them. You can earn a significantly higher amount by just picking up the phone. It is the more difficult route when you consider call waiting times, credit spent etc but it is worth it, and what’s more I have done some of this hard work for you.

How long is my money fixed for?

Most banks offer flexible periods of 30 days, 60 days, 90 days, 180 days and one year.

How do I get paid?

Usually, the money is removed from your account and the interest is paid into your account. So for example, you want to fix N500,000 for 60 days and the bank has offered you an interest rate of 7%. You have N550,000 in your account. Once you confirm you’re making the arrangement and sign all the necessary documentation, the N500,000 “disappears” from your account to be “fixed”. At the end of 60 days, you get paid back your original N500,000 + an additional N2,916 interest (7% x 500,000) / 12.  A simplified version of what really happens behind the scenes is that the N500,000 is given to another customer who has asked for a loan – but he will be charged 20% interest (or N100,000). After 60 days, you get back your N500,000 + N2,916 (7% interest from the other customers N100,000). Not bad business for banks, if you ask me.

Bank interest rate comparisons

For my enquiries, I called First Bank and GTBank.

I rated both banks on customer service quality (pet peeve of mine, because time is money) and interest rates.

**Edit** I have been corrected on the interest rates due to an earlier error. Apparently, the rates given by the bank  are annual, not monthly and thus should be divided by 12. This is a trap most people could easily fall into like I did. Whenever you’re quoted a rate on the amount, divide it by 12 for your monthly rates, and then deduct 10% tax for a more accurate reflection of what your interest is. This is how I have calculated the monthly rates in the chart and the actual rates provided by the banks are available below the chart.

Untitled Infographic-3

Interest rates

First Bank

7 days (First bank does not offer this service)

30 days – 9.25%

60 days: 9.50%

90 days: 9.75%

365 days: 10%

GTBank

Available from N100,000 to N1m.

7 days – 3.75%

30 days – 180 days : 6.25%

Some notes:

Call times. My initial contact with both banks was on a Friday afternoon, at about 5.30pm. My second contact attempt with GTBank after the first one proved futile was at 3.20pm on a Sunday.

Omissions. I initially wanted to include Accessbank in this exercise, but have been unlucky in getting through to a knowledgeable person on customer service. The frontline staff I have spoken to, all seem to lack basic knowledge regarding what services their banks offer and where to get information outside the limits of their knowledge. I would recommend that training is provided for all front line staff as a matter of urgency, as customers otherwise have no way of getting informed about competitive  rates for your most lucrative services.

Am I an agent? I work for neither of these banks. My selection of this two is purely by chance and accessibility of contact information via the bank websites. I simply picked the banks with the most prominent contact information via websites. My reviews are unbiased, and if I haven’t reviewed any others yet, don’t worry – “life is turn by turn”.

 

 

 

196 Comments

  1. Chizoba December 13, 2014
  2. Felix Okoli December 15, 2014
  3. mrpepe December 15, 2014
  4. Franklin March 18, 2015
    • mrpepe May 28, 2015
  5. chiamaka May 14, 2015
  6. Princepat May 17, 2015
    • mrpepe May 28, 2015
  7. Annex Franklin mon May 20, 2015
    • mrpepe May 28, 2015
  8. Joshua May 28, 2015
    • mrpepe May 28, 2015
      • michael August 2, 2015
  9. K y May 29, 2015
  10. felix May 29, 2015
    • mrpepe May 31, 2015
  11. felix May 29, 2015
  12. ozioma May 30, 2015
    • mrpepe May 31, 2015
  13. Sarah June 2, 2015
  14. Ernest June 8, 2015
  15. jiga June 12, 2015
  16. Segun June 13, 2015
  17. David June 13, 2015
  18. olumide June 14, 2015
  19. Julie June 18, 2015
  20. idowu June 26, 2015
  21. Kama'an June 30, 2015
    • mrpepe July 3, 2015
  22. Musa June 30, 2015
  23. Nnadi ugwumsinachi July 2, 2015
  24. Nnadi ugwumsinachi July 2, 2015
  25. Yinka7 July 8, 2015
    • mrpepe August 12, 2015
  26. omitona korede July 12, 2015
  27. Dan July 13, 2015
  28. Femmyrich July 14, 2015
  29. oyin July 14, 2015
  30. chidubem July 18, 2015
  31. ian Smith July 22, 2015
  32. ikenna ezika August 4, 2015
  33. Friday james August 5, 2015
    • mrpepe August 15, 2015
  34. bigbroz August 23, 2015
  35. T-klaxic August 24, 2015
    • mrpepe August 25, 2015
  36. T-klaxic August 24, 2015
  37. Chijiok Gideon N. August 26, 2015
    • mrpepe August 26, 2015
    • mrpepe September 15, 2015
      • Adewale Ridwan February 8, 2020
      • Adewale Ridwan February 8, 2020
  38. Peter Tersoo August 27, 2015
  39. Peter Tersoo August 28, 2015
    • mrpepe September 6, 2015
  40. kmax September 9, 2015
    • mrpepe September 10, 2015
  41. kmax September 10, 2015
  42. Adekanye R I September 10, 2015
    • mrpepe September 10, 2015
  43. kmax September 11, 2015
    • mrpepe September 12, 2015
  44. Adedayo_JNR September 12, 2015
  45. Joseph Orji Amah September 13, 2015
    • mrpepe September 14, 2015
  46. olamilekan September 16, 2015
    • mrpepe September 16, 2015
  47. Japhet September 25, 2015
  48. Amara September 25, 2015
  49. Chuks September 28, 2015
  50. bidemi October 5, 2015
    • mrpepe October 5, 2015
  51. ESTHER GREG October 16, 2015
  52. marv October 27, 2015
  53. precious October 28, 2015
    • mrpepe October 29, 2015
  54. will November 6, 2015
  55. mimi November 10, 2015
  56. Sunday November 12, 2015
  57. Solomon November 14, 2015
  58. Solomon November 14, 2015
  59. onyi November 15, 2015
  60. Joey November 16, 2015
    • mrpepe November 16, 2015
  61. Ayo Akin November 24, 2015
  62. Ayo Akin November 24, 2015
  63. Abusola emmanuel December 7, 2015
    • mrpepe December 11, 2015
  64. Labi Sow December 10, 2015
    • mrpepe December 11, 2015
  65. Mr x December 15, 2015
  66. Dane December 17, 2015
    • mrpepe December 17, 2015
    • Mr X December 19, 2015
  67. Easedom December 20, 2015
  68. owolaborn December 24, 2015
  69. owolaborn December 24, 2015
  70. Zhuky January 7, 2016
    • mrpepe January 7, 2016
  71. Chris January 9, 2016
    • mrpepe January 10, 2016
  72. Adaora January 12, 2016
    • mrpepe January 12, 2016
  73. Maureen January 18, 2016
  74. Blessing January 19, 2016
    • mrpepe January 20, 2016
  75. Emmanuel obinna February 2, 2016
    • mrpepe February 2, 2016
  76. Joysee February 3, 2016
    • mrpepe February 3, 2016
  77. Aiguosarhuo February 5, 2016
  78. Aiguosarhuo February 5, 2016
    • mrpepe February 6, 2016
  79. prince February 5, 2016
    • mrpepe February 6, 2016
  80. Kp February 13, 2016
    • mrpepe February 13, 2016
  81. Ahmed February 14, 2016
    • mrpepe February 15, 2016
  82. Spaco February 15, 2016
    • mrpepe February 16, 2016
  83. Spaco February 16, 2016
    • mrpepe February 16, 2016
  84. Spaco February 16, 2016
    • mrpepe February 16, 2016
  85. Spaco February 16, 2016
    • mrpepe February 16, 2016
  86. Spaco February 18, 2016
  87. Spaco February 19, 2016
  88. paultemmy February 27, 2016
  89. Ekeke emeka March 29, 2016
    • mrpepe March 29, 2016
  90. Innocent April 29, 2016
    • mrpepe April 29, 2016
  91. JOJU May 6, 2016
  92. jerubaal May 8, 2016
  93. Dave May 11, 2016
  94. Damina mahanan May 11, 2016
  95. Ajayi May 12, 2016
  96. obey grant May 23, 2016
  97. Azeez June 13, 2016
  98. Azeez June 13, 2016
  99. victory June 27, 2016
    • mrpepe June 30, 2016
  100. victory June 27, 2016
  101. Obinna June 28, 2016
  102. luca July 13, 2016
  103. MELISSA August 24, 2016
  104. MELISSA August 26, 2016
  105. supersolo August 28, 2016
    • mrpepe August 29, 2016
  106. mario September 16, 2016
  107. mario September 16, 2016
  108. adisa idris September 29, 2016
  109. legacy October 10, 2016
  110. joseph October 11, 2016
  111. Doris November 24, 2016
  112. Ethan Okoli December 5, 2016
  113. joseph December 5, 2016
  114. david December 13, 2016
  115. Tikwe December 17, 2016
  116. COSMAS NWEKEE March 5, 2017
  117. Bernard May 20, 2017
  118. Edidiong July 14, 2017
  119. victor October 14, 2017
  120. Ti Atei October 15, 2017
  121. Essien October 23, 2017
  122. mindingmyownbusiness October 28, 2017
  123. Abiodun January 5, 2018
  124. GIFT February 13, 2018
  125. John March 1, 2018
  126. Abah Augustine April 7, 2018
  127. Amodu April 19, 2018
  128. DoB May 9, 2018
  129. Mr James May 10, 2018
  130. ADURAGBEMI May 14, 2018
  131. Igwe Daniel July 11, 2018
  132. Eco Teck August 8, 2018
  133. victor August 24, 2018
  134. ANDY January 1, 2019
  135. Yohanna stephen July 16, 2019
  136. Mavix October 26, 2019
  137. chibuzor October 28, 2019
  138. Godwin frank February 1, 2020
  139. Bright July 1, 2020

Leave a Reply