{"id":4922,"date":"2017-06-12T09:51:42","date_gmt":"2017-06-12T09:51:42","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/?p=4922"},"modified":"2017-06-12T09:51:42","modified_gmt":"2017-06-12T09:51:42","slug":"advantages-and-disadvantages-of-fixed-deposits","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/advantages-and-disadvantages-of-fixed-deposits\/","title":{"rendered":"Advantages and disadvantages of fixed deposits"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div itemprop=\"description\" readability=\"104\">\n<p>By Adaeze Okechukwu<\/p>\n<p><strong>H<\/strong><strong>OW to place\u00a0 a fixed deposit<\/strong><\/p>\n<p><!-- between content ad --><\/p>\n<p>Even if the process of placing a fixed deposit varies slightly from one bank to another, opening a fixed deposit account is still very simple.<\/p>\n<p>First, determine how much you want to place in your<strong>\u00a0 <\/strong>deposit plan.<\/p>\n<p>If you do not have a regular savings account in the bank,<strong>\u00a0 y<\/strong>ou will have to fill-in a deposit mandate form. In some banks, you would also need to fill-in reference forms so you can deposit cheques issued by third parties.<\/p>\n<p>The bank will require;\u00a0 passport photograph, proof of identification, a copy recent receipt from any public utilities and a copy of a residence or work permit for foreign account holders is required.<\/p>\n<figure id=\"attachment_92801\" style=\"width: 300px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2010\/08\/naira22-300x216.jpg?resize=300%2C216\" data-lazy-src=\"https:\/\/i0.wp.com\/d19lga30codh7.cloudfront.net\/wp-content\/plugins\/lazy-load\/images\/1x1.trans.gif\" class=\"size-medium wp-image-92801\" alt=\"\" width=\"300\" height=\"216\" srcset=\"http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2010\/08\/naira22-300x216.jpg 300w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2010\/08\/naira22.jpg 400w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/><noscript><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-92801\" src=\"https:\/\/i0.wp.com\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2010\/08\/naira22-300x216.jpg?resize=300%2C216\" alt=\"\" width=\"300\" height=\"216\" srcset=\"http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2010\/08\/naira22-300x216.jpg 300w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2010\/08\/naira22.jpg 400w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/><\/noscript><figcaption class=\"wp-caption-text\">naira<\/figcaption><\/figure>\n<p>If you have existing account(s) in the bank, you need to just fill-in a form stating the following: account name, account number, deposit amount, duration of deposit.<\/p>\n<p><strong>Advantages<\/strong><\/p>\n<p>The most important advantage of investing in Fixed Deposit is that, it <a href=\"https:\/\/amazingproperty.com.ng\/blog\/tips-for-house-price-negotiation\/\">offers<\/a> guaranteed return because there are very low risks and uncertainties as compared to investment in stock market.<\/p>\n<p>Furthermore fixed deposits are very flexible and convenient in nature because one can have fixed deposit with maturity for 1 month or 1 year with any amount unlike <a href=\"https:\/\/amazingproperty.com.ng\/blog\/property-center-nigeria\/\">real estate<\/a> where one needs to invest heavily.<\/p>\n<p>In addition, investing in a fixed deposit account earns you a higher interest rate than leaving your money in a savings account as FD\u2019s interest rates are highly negotiable.<\/p>\n<p><strong>\u00a0 <\/strong>It is easy to raise a <a href=\"https:\/\/amazingproperty.com.ng\/blog\/fast-flexible-real-estate-loans-usa\/\">loan<\/a> against your FD. One can borrow up to 90 per cent of the FD\u2019s amount.<\/p>\n<p><strong>Disadvantages<\/strong><\/p>\n<p>As attractive as fixed deposits can be, they may not necessarily be suitable for everyone.<\/p>\n<p>One of the biggest disadvantages of investing money in fixed deposit is that, its returns are low compared to other investment options and if the inflation is very high fixed deposit investors are the worst hit as the return from fixed deposit may not be sufficient to cover the high expenses due to inflation.<\/p>\n<p>Also, If one invests all of his or her money in fixed deposits,\u00a0 \u00a0 he or she may not enjoy the benefits of diversification which one get if one invests the money in stock market, real estate, gold and other alternate investments.<\/p>\n<p>As far as taxation is concerned fixed deposits are taxed at normal rates of taxation and hence one cannot take the tax benefit from this investment,\u00a0 unlike the infrastructure bonds.<\/p>\n<p>Moreover, because your money is locked away with the bank, often for months, you lose the flexibility of a regular, day-to-day savings or current account. If you do withdraw your money from your fixed deposit account before the agreed maturity date, you will likely be penalised in the form of reduced interest or penalty fees.<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a hre=\"http:\/\/www.vanguardngr.com\/2017\/06\/advantages-disadvantages-fixed-deposits-2\/\"> Vanguard <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] By Adaeze Okechukwu HOW to place\u00a0 a fixed deposit Even if the process of placing &hellip; <a title=\"Advantages and disadvantages of fixed deposits\" class=\"hm-read-more\" href=\"https:\/\/amazingproperty.com.ng\/blog\/advantages-and-disadvantages-of-fixed-deposits\/\"><span class=\"screen-reader-text\">Advantages and disadvantages of fixed deposits<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":4923,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[84],"class_list":["post-4922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-real-estate"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/naira22-300x216.jpg?fit=300%2C216&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":8073,"url":"https:\/\/amazingproperty.com.ng\/blog\/should-you-choose-a-fixed-variable-or-split-loan\/","url_meta":{"origin":4922,"position":0},"title":"Should you choose a fixed, variable or split loan?","author":"Amazing Property","date":"February 8, 2018","format":false,"excerpt":"It\u2019s the question every Aussie with a mortgage has to grapple with \u2013 should you choose a fixed, variable or split home loan? Finance specialist, John Tindall from Accumulus Home Loans in Sydney, translates the mortgage jargon, explains the pros and cons of the different types of loans and shares\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Bank Loan Types 2000x1500.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/bank-loan-types_2000x1500.jpg?fit=1200%2C900&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/bank-loan-types_2000x1500.jpg?fit=1200%2C900&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/bank-loan-types_2000x1500.jpg?fit=1200%2C900&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/bank-loan-types_2000x1500.jpg?fit=1200%2C900&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/bank-loan-types_2000x1500.jpg?fit=1200%2C900&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":14628,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-back-above-3-will-they-keep-rising\/","url_meta":{"origin":4922,"position":1},"title":"Mortgage Rates Back Above 3%. Will They Keep Rising?","author":"Amazing Property","date":"October 1, 2021","format":false,"excerpt":"Mortgage rates are hovering near their record lows. \u201cConsumers shouldn\u2019t panic . The 30-year fixed-rate mortgage averaged 3.01% this week, posting a sharp rise after spending nearly four months below 3%. Economists expect mortgage rates to continue to increase modestly over the next few months. \u201cMortgage rates rose across all\u2026","rel":"","context":"In &quot;Mortgage&quot;","block_context":{"text":"Mortgage","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/mortgage\/"},"img":{"alt_text":"mortgage rates","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/09\/09_27_18_Mortgage_Rates_Feature.jpg?fit=586%2C330&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/09\/09_27_18_Mortgage_Rates_Feature.jpg?fit=586%2C330&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/09\/09_27_18_Mortgage_Rates_Feature.jpg?fit=586%2C330&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5032,"url":"https:\/\/amazingproperty.com.ng\/blog\/steadier-mortgage-rates-buoy-loan-demand\/","url_meta":{"origin":4922,"position":2},"title":"Steadier Mortgage Rates Buoy Loan Demand","author":"Amazing Property","date":"June 21, 2017","format":false,"excerpt":"[ad_1] Mortgage applications for refinancings and home purchases remained elevated last week as mortgage rates continued to give consumers incentive to make a move. \"Both the 10-year Treasury yield and the 30-year conventional mortgage fixed rate held steady last week, keeping rates well below the recent highs,\" says Lynn Fisher,\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Mortgage_Activity_062117.png?fit=600%2C315&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Mortgage_Activity_062117.png?fit=600%2C315&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Mortgage_Activity_062117.png?fit=600%2C315&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7972,"url":"https:\/\/amazingproperty.com.ng\/blog\/rising-rates-cause-loan-demand-to-teeter\/","url_meta":{"origin":4922,"position":3},"title":"Rising Rates Cause Loan Demand to Teeter","author":"Amazing Property","date":"January 31, 2018","format":false,"excerpt":"Mortgage rates were on the rise for the second consecutive week, causing some borrowers to show reluctance. Total mortgage application activity\u2014which reflects both refinancing and home purchase demand\u2014dropped 2.6 percent last week, the Mortgage Bankers Association reported Wednesday. Nevertheless, mortgage volume remains 6.6 percent higher than the same week a\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Mortgage Activity 012618.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Mortgage_Activity_012618.png?fit=600%2C315&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Mortgage_Activity_012618.png?fit=600%2C315&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Mortgage_Activity_012618.png?fit=600%2C315&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7319,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-sink-lower-this-week\/","url_meta":{"origin":4922,"position":4},"title":"Mortgage Rates Sink Lower This Week","author":"Amazing Property","date":"December 1, 2017","format":false,"excerpt":"The 30-year fixed-rate mortgage is averaging lower than it did a year ago, and remains well below the 4 percent threshold this week. \u201cThe 30-year fixed mortgage rate fell two basis points to 3.9 percent in this week\u2019s survey, but we closed our survey prior to a surge in long-term\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Rates113017.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates113017.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates113017.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/12\/rates113017.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":8371,"url":"https:\/\/amazingproperty.com.ng\/blog\/higher-rates-offset-loan-demand\/","url_meta":{"origin":4922,"position":5},"title":"Higher Rates Offset Loan Demand","author":"Amazing Property","date":"February 21, 2018","format":false,"excerpt":"Home buyers and homeowners may be getting spooked by higher mortgage rates. 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Volume is now just 3.5 percent higher than a\u2026","rel":"","context":"In &quot;Opportunities In New Markets&quot;","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Mortgage Activity 022118.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/Mortgage_Activity_022118.png?fit=620%2C326&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/Mortgage_Activity_022118.png?fit=620%2C326&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/Mortgage_Activity_022118.png?fit=620%2C326&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/4922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=4922"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/4922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/4923"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=4922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=4922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=4922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}