Fixed Notes

Fixed Notes are financial instruments designed for investors seeking predetermined returns over a specific period. These investment vehicles offer a fixed interest rate for a set duration, providing stability and predictability in investment returns. Fixed Notes are available in two currencies: Nigerian Naira (₦) and US Dollars ($).

Naira Fixed Notes

Naira Fixed Notes are denominated in Nigerian Naira and cater to investors looking to invest in the local currency.

Naira Fixed Notes have a tenor range of 90 to 366 days. This allows investors to choose short to medium-term investment periods based on their financial goals and liquidity needs.

The minimum investment amount for Naira Fixed Notes is ₦10 million. This threshold ensures that the investment is accessible to institutional investors and high-net-worth individuals.

Dollar Fixed Notes

Dollar Fixed Notes are denominated in US Dollars, providing an option for investors who prefer to hold foreign currency investments.

Dollar Fixed Notes offer a tenor range of 180 to 366 days. This range is suitable for investors seeking medium-term investment opportunities in US Dollars.

The minimum investment amount for Dollar Fixed Notes is $10,000. This lower threshold, compared to Naira Fixed Notes, makes Dollar Fixed Notes more accessible to a broader range of investors.

Benefits of Fixed Notes

Fixed Notes offer several advantages to investors, it typically provides higher returns compared to traditional bank fixed deposits. This makes them an attractive option for investors seeking to maximize their interest income.

Investors can benefit from investing in safe assets that offer competitive yields. Fixed Notes are generally considered low-risk investments, making them suitable for conservative investors who prioritize capital preservation.

Fixed Notes offer ease of liquidation, allowing investors to convert their investments back to cash when needed. This feature provides flexibility and helps manage unexpected financial needs.

One of the primary benefits of Fixed Notes is capital preservation. The fixed interest rate and predetermined investment period help protect the investor's principal amount from market fluctuations.

Penalty Fee for Early Withdrawals

When a customer withdraws funds from their savings before maturity, a penalty fee is applied. The penalty fee is calculated based on a fixed note break fee rate of 0.25 (or 25%) and is deducted from the total interest accrued on the principal amount.

  • Fixed Note Break Fee Rate: 0.25 (25%)
  • Total Interest Accrued: The interest earned on the principal amount up to the point of withdrawal.
  • Principal: The original amount of money that was invested.
  • Withdrawal Amount: The amount the customer wishes to withdraw before maturity.

The penalty fee is automatically calculated and deducted when the withdrawal is processed via the transfer API call.

Here’s a sample response object when creating a Fixed Note investment for your users:

{
  "fixed_note_id": "3755d89109c9143adde34a79af9e5db2",
  "account_id": "2932df67444fe82db83f6ed5c979c58",
  "name": "FN260624WWX",
  "custom_name": "FN260624WWX",
  "product_code": "PRCDE3458088658",
  "currency": "NGN",
  "principal": "0.00000",
  "returns": "0.00000",
  "balance": "0.00000",
  "rate": {
    "amount_range": "10M-100M",
    "tenor_in_months": 3,
    "rate": "7.50%",
    "rate_tenor": "per-annum"
  },
  "maturity_date": "2024-09-24",
  "is_matured": false,
  "auto_reinvest": false,
  "created_on": "2024-06-26T13:13:05.203742+00:00",
  "start_date": "2024-06-26"
}

Visit the API reference for a complete guide.