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The short answer
Yes. A fixed deposit at an NDIC-insured bank is covered like any other deposit, including accrued interest, up to ₦5,000,000 per depositor at deposit money banks and primary mortgage banks and ₦2,000,000 at microfinance banks. The limit applies to all your accounts at that bank combined, not to each account.
A fixed deposit is a deposit, not an investment product sold on top of a bank account, so it falls inside the Nigeria Deposit Insurance Corporation's cover in the same way as a savings or current account. What surprises many savers is how the limit is applied: it is per depositor, per bank, and your fixed deposit is added to everything else you hold there.
The limits, by type of bank
The NDIC's own FAQ page, checked in October 2026, sets out the maximum cover. Voice of Nigeria reported the same figures from the NDIC in March 2026.
| Institution | Maximum cover per depositor |
|---|---|
| Deposit money banks (commercial, merchant, non-interest) | ₦5,000,000 |
| Primary mortgage banks | ₦5,000,000 |
| Microfinance banks | ₦2,000,000 |
The NDIC says cover is naira for naira and includes interest accrued up to the date the bank is closed. So a fixed deposit that has run half its tenor is covered for principal plus interest earned to that date, within the limit. For the full history of these limits, see NDIC deposit insurance limits explained.
How your balances are added together
The NDIC FAQ explains that deposits held "in the same right and capacity" at one institution are combined. Three rules matter for fixed deposit holders:
- Head office and branches count as one bank. Opening a fixed deposit at a different branch of the same bank does not give you a second limit.
- Each insured bank is separate. Money at two different banks is insured separately at each.
- Joint accounts are separate from individual ones. A joint account with a valid mandate and withdrawal rights is insured separately from each owner's own accounts. Fiduciary accounts, such as one held in trust for someone else, are also insured separately.
Worked example
Example: Ada holds ₦3,000,000 in a savings account and a ₦4,000,000 fixed deposit at the same commercial bank. Her total is ₦7,000,000. If that bank failed, the insured amount would be ₦5,000,000. The remaining ₦2,000,000 would be a claim on the bank's liquidation, paid only as assets are recovered.
If Ada instead placed the fixed deposit at a second insured commercial bank, each balance would sit under its own ₦5,000,000 limit and the full ₦7,000,000 would be within cover. Our guide to NDIC cover for joint and multiple accounts works through more combinations.
What happens to the amount above the limit
Money above the insured sum is not lost automatically, but it is no longer protected. The NDIC FAQ says the excess shares pro rata in the liquidation proceeds alongside other creditors. The Heritage Bank case gives a sense of scale: Nairametrics reported in January 2026 that the NDIC's first two liquidation dividends for balances above ₦5,000,000 came to a cumulative 14.4 kobo per naira. Recovery takes time and is not certain. See liquidation dividends explained.
Proving your fixed deposit in a claim
When a bank closes, the NDIC's Your Claims page lists proof of deposit it accepts, and a fixed deposit certificate is named alongside passbooks, cheque books and statements. You also need a valid ID, a passport photo and details of an active account at another bank for payment. Keeping your certificate or placement advice, and your BVN linked to another bank account, makes the process faster.
What to check first
- Confirm the bank is on the NDIC insured institutions list and note its category.
- Add up everything you hold there in your own name: savings, current and fixed deposits, with interest.
- If the total is above the limit, consider splitting across insured banks or using a joint account where it suits your circumstances.
- Keep your certificate or advice and statements in a safe place.
Common misunderstandings
- "Each fixed deposit is insured separately." No. Several fixed deposits at the same bank, in your name, are added together with your other accounts there.
- "A bigger bank means a bigger limit." No. The limit depends on the category of licence, not the size of the bank.
- "Dollar fixed deposits are outside cover." The NDIC FAQ describes cover in naira terms; how a foreign currency deposit is converted for a claim is not set out on the page we checked, so ask the NDIC directly if this matters to you.
- "Insurance pays out while the bank is still open." No. NDIC cover is paid only when an insured bank is closed.
Where Pryme fits
Naira held in a Pryme account, including Flexible and Fixed Boxes, is held by Solid Allianze Microfinance Bank, licensed by the CBN and insured by the NDIC up to the applicable limit for microfinance banks. Pryme Financial is a technology company, not a bank. See Savings Boxes and how Pryme works.
Questions people ask
Is my fixed deposit insured by NDIC?
Yes, if the bank is NDIC-insured. The deposit and its accrued interest are covered up to ₦5 million per depositor at commercial banks and ₦2 million at microfinance banks, combined with your other accounts there.
If I have ₦10 million in fixed deposit, how much will NDIC pay?
At a single commercial bank, the insured sum is ₦5 million. The rest becomes a claim in liquidation, paid as liquidation dividends if and when assets are recovered.
Does NDIC insure fixed deposits in microfinance banks?
Yes, at licensed microfinance banks, up to ₦2 million per depositor according to the NDIC FAQ.
Is fixed deposit interest covered by NDIC?
Yes. The NDIC says cover includes interest accrued up to the date the bank is closed, within the overall limit.
Sources
- NDIC: Frequently Asked Questions · accessed Oct 2026
- Voice of Nigeria: NDIC pegs depositors' payout at ₦2m, ₦5m (1 Mar 2026) · accessed Oct 2026
- NDIC: Your Claims · accessed Oct 2026
- Nairametrics: NDIC declares ₦24.3 billion second liquidation dividend for Heritage Bank depositors (12 Jan 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.