Does the interest rate on fixed deposit depend on the amount that is deposited?

[King Belieal]

I have observed that the rate of interest for big amounts saved in fixed deposits is greater than that for smaller amounts. Is it that saving higher amounts in fixed deposits would attract a higher interest rate?

 

[Suba]

In my country, each bank has slightly different deposit rules. Some apply the same interest rate to fixed deposits regardless of the amount, but some have different interest rates depending on the tenor (1, 3, 6, and 12 months).

 

[eLdavis]

Yes i believe the amount of money in a fixed deposit account often determines the amount of interest you get as well.

 

[Trush Jodie]

I think that the amount of money you have to drop in fixed deposits gives the level of bargaining power that you have to bargain for higher interest rates.

 

[Springtime]

Other than the amount of money which may determine interest rate, the duration of your time deposit also affect the interest rate offered to you.

 

[magnus2022]

I have observed that the rate of interest for big amounts saved in fixed deposits is greater than that for smaller amounts. Is it that saving higher amounts in fixed deposits would attract a higher interest rate?

Interest rate is pegged at specific percentage like 5% per annum. Therefore, you don't expect someone who deposited 1 million to earn the same thing with another person that deposited 250,000. How much you earn will depend on how much you deposited.

 

[Nomad]

In our country, the time period and the amount determines the interest rate. Higher the amount, longer the deposit period, higher the interest

 

[Augusta]

Other than the amount of money which may determine interest rate, the duration of your time deposit also affect the interest rate offered to you.

Yes, that's right. you need to also consider tge duration of storage as the more you keep the more you get interest.

 

[King Belieal]

Interest rate is pegged at specific percentage like 5% per annum. Therefore, you don't expect someone who deposited 1 million to earn the same thing with another person that deposited 250,000. How much you earn will depend on how much you deposited.

If I am depositing 10 million in fixed deposit, I can negotiate with the bank to give me a rate higher than that 5% or I go with my money. That's different from someone that just wants to fix 2 million.

 

[Stardom22]

In my country the interest rates earned on the fixed deposit accounts is constantly. What one earns depends on entirely on the amount deposited on the Bank for instance.

 

[Min George]

I am working in the financial sector and I can tell you from a place of authority that fixing bigger amount gives you higher interest.

 

[Augusta]

In my country the interest rates earned on the fixed deposit accounts is constantly. What one earns depends on entirely on the amount deposited on the Bank for instance.

I think this is how it is in my country too. This is a. fair enough strategy for everyone

 

[Min George]

I think this is how it is in my country too. This is a. fair enough strategy for everyone

With Nigerian banks, fixed deposits interest rate is negotiable. People that fix up to 10 million naira are getting annual interest of up to 10%.

 

[Augusta]

With Nigerian banks, fixed deposits interest rate is negotiable. People that fix up to 10 million naira are getting annual interest of up to 10%.

Okay then if it is this way then fair enough..At least one should get a better interest rate for higher deposit

 

[aninditasen]

I have observed that the rate of interest for big amounts saved in fixed deposits is greater than that for smaller amounts. Is it that saving higher amounts in fixed deposits would attract a higher interest rate?

In India it depends on how long you are going to deposit. The longer the term and larger the amount the more the interest rate.