How to earn N100,000 a year from a Fixed Deposit account


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Posted by on Wednesday December 24, 2014 at 15:22:27:

Keeping a Fixed deposit account is a cool way to make money in Nigeria from your bank and people who have the money to invest find it a more reliable way to make money while they sleep or are away from work. Although the profit margin may not be as high as what you get from running a profitable small business, the thing about is that it's a more reliable and stress free way to make money since it allows your money to work for you.

After writing a couple of articles online about Fixed deposit accounts, I've received a lot of queries from people mostly bothering on interest rates and how to calculate their earnings from a Fixed deposit investment. Some would like to invest as much as N10m and some even much more. There are many Nigerians who are even based outside the country that would want to bring back some money home but would want to put it in an investment pool that would generate money from them and in this way help them get richer while at the same time grow the nation's economy.

Well, this is basically a write-up on how a person can earn N100,000 a year from a Fixed deposit account.

First of all, there are certain variables that determine how much a person can make from a Fixed investment such as these and they include the capital, the period of investment and thirdly, the interest rate.

Scenario 1: Let's assume that you want to earn at least N100,0000 a year from your this investment and the interest rate is at about 8%, then the amount of capital you will need is N1,250,000.

Calculation for required capital: (N100,000*100)/(8) = N1,250,000.

Recommendation: Just look for a bank that offers at least 8% interest rate per annum for your capital of N1,250,000

Scenario 2: Let's again assume that the interest rate offered is 10% and the period is 1 year, then the amount of capital you'd need is N1,000,000.

Calculation for required capital: (N100,000*100)/(10) = N1,000,000.

Scenario 3: Let's now assume that the bank is offering about 6% for 1 year, then you'd need to invest at least N1,700,000

Calculation for required capital: (N100,000*100)/(6) = N1,666,666.

So, it is really easy to know how to earn at least N100,000 per year from fixed deposit. If you want to earn N1m a year, then just add a zero to the end of those figures.

Re: How to earn N100,000 a year from a Fixed Deposit account Reply by chukwuebuka ogbennia on Thursday July 30, 2015 at 12:12:5:

For business

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