As interest rates of Treasury bill continue to drop, finding alternative rates on the market seems laudable. Higher rates come with higher risks though. Therefore, investors must be cautious when making these decisions. A number of financial institutions claim to offer attractive interest rates on fixed deposits. Even though a few of these institutions openly publish their rates, the majority fail to publicly declare their supposed attractive interest rates. Of the few financial institutions that are open about their interest rates, three are listed below.
1. BOND savings and loans limited
BOND savings and loans limited is a non-bank financial institution which had been operated as a finance house since 2008. BOND acquired a savings and loans licence in its fifth year of operation and has since been mobilising deposits and giving out loans to the general public. Bond offers three main investment products. They guarantee to pay interest rates higher than that of Treasury bill on two out of the three investment products. These products are BOND fixed deposits (aka Daakye Dwetiri) and BOND Duapa.
The BOND fixed deposits are 91-day, 182-day and 365-day tenured investments with promising interest rates of (T-bill rate + 1 to 8%) depending on the tenure and the amount of invested money. In other words, the more and the longer you invest, the higher interest rate you are paid. The BOND Duapa is however a variable monthly investment that can be opened with a minimum contribution of GH¢100. The interest rates on BOND Duapa are fixed at (T-bill rate + 1%) for the 91-day, 182-day and the 365-day tenures. BOND savings and loans limited can be reached via their website at http://bond.com.gh/site/
2. New generation investment services (NGIS)
New Generation Investment Services (NGIS) Limited, an investment management firm, has operated for over a decade now. NGIS promises a premium rate of 2 to 5% higher than the prevailing Treasury bill rates for their fixed deposits. The minimum one can invest to earn these rates is GH¢500. NGIS can be reached on their website at http://ngis-group.com/
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3. First Allied savings and loans limited
Since 1996, First Allied savings and loans limited has been providing financial services to the small, micro and medium enterprises. Their fixed deposit products come with negotiated rates (higher than the prevailing T-bill rates) depending on the amount and tenure of the investment.
Rates currently displayed on their website, as of today (10th January 2017), are *28%, *29% and *30% for the 91-day, 182-day and 365-day tenures respectively. In comparison, the prevailing Treasury bill rates are 16.2478% and 17.8796% for the 91-day and 182-day tenures respectively. Unfortunately, these published rates do not have any associated dates. Thus, it would be difficult to ascertain if their rates are up-to-date. A follow-up on their updated rates has still not yielded a response. First Allied savings and loans limited can be reached on their website at http://www.firstalliedghana.com/investments.html