Gtbank Fixed Deposit Interest Rate 2016
what would be discussed today is Gtbank Fixed Deposit Interest Rate but before then, what is a fixed deposit ?
Fixed deposit is a lump sum deposited with a bank for a varying period in exchange for interest which is usually calculated as an interest rate depending on the sum of money deposited and the time frame. A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.
The principle of how this works is simple. Before you could fix any sum of money, you need to have an account with the bank. If you already have an account with them, the process becomes shortened. You need to inform the bank that you want to fix “X” sum of money for “Y” period of time. The bank will now remove the said amount from your account, tagging it as fixed and when the time frame is reached, the money is returned with the agreed interest on it. During the period when the money was fixed, the bank gives your money out as loan to their customer(s) with the interest rate higher than that of fixed deposit so they would make profit.
It is important to note however that a 10% Withholding tax rate is levied on the interest earned. Another downside of fix deposit is inflation. While your said amount is fixed, inflation rate is not. In instances where the inflation rate rise remarkably, your money loses it value.
GTBANK FIXED DEPOSIT INTEREST RATE
IN GTbank, you can fix deposit a minimum sum of N100,000. The tenure minimum and maximum time frame is from 30 days to 180 days. Please note that as mentioned above, 10% Withholding tax rate is applied to the earned interest.
Updated New Rate 2016: If you are fixing between N100-1,000,000 for 30days, 60 or 90days the rate is 4.5%, and 3.5% for 180days
1. One hundred thousand Naira (N100,000) to one million Naira (N10,000,000)
When you fix deposit the amount above, the interest rate ranges from 0.01% to 3.50% depending on the deposit time frame.
30 days = 4.50%
60 days = 4.50%
90 days = 4.50%
180 days = 3.50%
2. More than One million Naira (>N1M) to ten million Naira (N10m)
30 days = 5.50%
60 days = 5.50%
90 days = 5.50%
180 days = 4.50%
3. More than 10 million Naira (>N10M) to 25 million Naira (N25M)
30 days = 6.50%
60 days = 6.50%
90 days = 6.50%
180 days = 5.00%
4. More than Twenty five million (>N25M) to fifty million Naira (N50M)
7 days = 0.01%
30 days = 6.75%
60 days = 6.75%
90 days = 6.75%
180 days = 5.50%
5. More than fifty thousand Naira (>N50M) and above
30 days = 7.00%
60 days = 7.00%
90 days = 7.00%
180 days = 6.00%
HOW TO CALCULATE INTEREST TO BE EARNED ON FIXED DEPOSIT AMOUNT
To calculate your interest, simply multiply the interest rate by the amount fixed and you then divide it by 12. Formula = interest rate% * amount / 12.
4.50% * 500,000 / 12 = 1875
Explanation of the above: a man fixed deposited N500000 for 30 days at an interest of 4.50%.
4.50% = 0.045
0.045 * 500,000 = 22500
22500 / 12 = 1875
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