Monday, 21 June 2021

How to Apply and Benefits of a Fixed Deposit Account

Fixed Deposit Account - How to Register - A Fixed Deposit Account is an account that allows individuals to receive higher interest rates than when they save money in a savings account. In a particular account, one decides on the date of taking the money.

The interest rates for these accounts are usually higher if the money is not withdrawn before the due date.

Why do banks pay high for fixed deposit accounts?

Banks are always looking for ways to get more profit; They need to maintain shareholders, pay, bank structure and still get profits.
When you open a fixed deposit account, you give the bank a deadline to use your money for businesses that will generate more income by the due date.

Banks can provide your money to other customers who need loans and carry higher interest rates. They can also use your money to invest in other investments in your portfolio.

Therefore, they give you more interest rather than a savings account. If you withdraw the money before maturity, the interest received will be forfeited.

Benefits of a Fixed Deposit Account:

  • It produces higher interest rates than other types of accounts.
  • It encourages savings culture.
  • You have to choose for how long you want to invest your money.
  • You can have more than one deposit.
  • Your investment return has been confirmed.
  • Most Nigerian banks have a minimum number of accounts open of 100,000 and the minimum time frame is 30 days.
  • The first bank has a maximum of 360 days while the GTB bank has 180 days. After the due date is reached, you can cash out or reinvest in other specific accounts.

How to Open a Fixed Account:

Go to the bank where you want to open a specific account. Collect and send a forward deposit account form.

Each bank has a different interest rate. Before opening a certain account, you can approach the bank and get information about your interest.

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