How much interest can NGN10m earn in Nigeria

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Posted by on Wednesday October 9, 2013 at 16:29:15:

When it comes to making a capital investment in Nigeria, the Money market is one of the safest and most rewarding places given that it's a growing economy and profitability rates are still high.

Of course, you could probably open a small business or run a manufacturing company with your funds in Nigeria but success rates can not be guaranteed in the first year. It is much easier to just invest money and get a kickback on it based on the internet it can pay you for the long term.

Nigeria is a profitable destination when it comes to good interest rates for deposits and most banks tend to offer an average of about 8% per annum while some even offer double digit rates.

You can earn a good interest on your money if you invest in a bank's fixed deposit account rather than putting it in a simple savings account or stocks which may not be so predictable.

Assuming an investor wants to invest something like N10m in a fixed deposit account, how much can he really earn in the first year?

Let me give a list of some of the banks and how much you can earn with them per year:

Capital N10m

First bank: 8+% = N0.8m per month
Union bank: 10.94% = N1.094m per year
Stanbic IBTC: 8*%+ = N0.8m per year
Fidelity bank: 10% = N1m per year
GTBank: 7.28% = N0.728m per year
Diamond: 10.5% = N1.05m per year
UBA: 9.29% = N0.929m per year

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Rates were taken from CBN report on deposit rates as at 9th Sept 2013.


Different banks do offer differentiates and for a high capital like N10m, you could even get higher when you negotiate with bank management. Investing in Fixed deposit accounts is not really a bad form of investment.




Comments:
    Re: How much interest can NGN10m earn in Nigeria Reply by J-Kennedy on Thursday October 10, 2013 at 11:41:31:

    Thanks for this, Felix.

    But, why is First bank much more higher than others, because their percentage is almost the same with others, yet it is monthly while others are yearly? Or is that a mistake?




    Re: How much interest can NGN10m earn in Nigeria Reply by Felix Okoli on Thursday October 10, 2013 at 11:41:31:

    The interest which fist bank pays is based on yearly rates but part payments are made monthly that's all. It doesn't mean per month internet but per year's interest. So if you invest say N100k at 8% with first bank, you would earn about N833.33 per month and by the end of the year, you will have earned about N10,000. So the interest is based on yearly calculations but payments are made in parts at the end of the month.


    Re: How much interest can NGN10m earn in Nigeria Reply by Holymicheal on Saturday March 22, 2014 at 6:52:3:

    Pls if i fixed 1million @5.5% for 90days,wat wil b my total earn for 365days?



    Re: How much interest can NGN10m earn in Nigeria Reply by Felix Okoli on Saturday March 22, 2014 at 6:52:3:

    Your 1m will earn N16500 after 90 days and N66000 after 365 days.





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