Why you need a Fixed deposit account

Posted by Felix Okoli on Sunday June 15, 2014 at 15:47:12:

A Fixed deposit account is just like any other type of account but runs in a different way. When you open a Fixed deposit account, you are required to keep your money for a longer while, and you need you notify the bank ahead of time if you need to withdraw your money, since in most cases the bank uses the money for other investments. Fixed Deposit account is not very popular as it requires very large minimal deposit to open the account, some banks charges as low as N150,000 while others charges as much as N500,000 as a minimum balance to open the account..

Some benefits of a Fixed deposit account:

- Higher Interest Rate: When compared to other types of account, Fixed Deposit account attracts the highest interest rate. The interest in a Fixed Deposit account ranges from 10% to 20% per annum, that is the reason most people open a Fixed Deposit account as a kind of investment since the interest keeps increasing as long as the money remains in the account.

- It Is A Safer Type Of Investment: As we mentioned above, Fixed Deposit accounts attracts interest as long as the money is in your account, this makes it a safer investment than buying of Shares in companies, because share prices can fluctuate and at the end of the year, you will have little or no dividend depending on how the Company performed that year, while in a Fixed- Deposit the interest rate is fixed.