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The short answer
If you give no instruction, many Nigerian banks roll a maturing fixed deposit over for a similar tenor at whatever rate applies that day. To change that, send a signed written instruction before maturity stating the account, amount and whether to roll over, pay interest only, or pay everything into a named account. The proceeds can then stay in naira, be converted, or be moved to a domiciliary account.
What happens if you do nothing
Fixed deposit terms differ by bank, so read the placement form you signed. Standard Chartered Nigeria's terms are a clear example: a deposit rolls over automatically for a similar tenor at the "prevailing system rate" unless you instruct otherwise. Deposits where interest was paid upfront cannot be rolled over or liquidated early.
The risk of rolling over by default is the rate. The MPR was cut to 23% in September 2026 (Arise News), and a deposit placed months earlier may renew at a lower rate than before. Ask for the renewal rate in writing before maturity.
Your three choices at maturity
| Instruction | What happens | Good when |
|---|---|---|
| Roll over principal and interest | Full amount renews for a new tenor | You do not need the money and accept the new rate |
| Roll over principal, pay out interest | Interest goes to your savings or current account | You want income, for example for family costs at home |
| Liquidate | Everything is paid into a named account | You want to move, convert or spend it |
How to give the instruction from the UK
Zenith Bank's FAQ says fixed deposits are opened and liquidated by a signed letter of authority giving the account number, amount, tenor and agreed rate. Most banks work this way, and accept a scanned signed letter by email from the address on file.
- Find the maturity date and certificate or reference number in your app or last statement.
- Write a short letter: account name and number, deposit reference, maturity date, your instruction and the destination account.
- Sign it with the signature on your mandate card, scan it, and send it from your registered email.
- Ask the bank to confirm in writing before maturity, and diary a check for the day after.
- If the bank asks for a call-back, make sure your registered phone works or update it first; see keeping a Nigerian account active from the UK.
Breaking it early
Early liquidation usually costs interest. Standard Chartered's terms say you forfeit "20% or more" of the interest, and any interest already paid plus a pre-liquidation charge come off the principal. Other banks set their own penalty, so ask before you instruct.
A worked example
Example only, with a made-up rate: ₦5,000,000 placed for 180 days at 18% a year simple interest.
- Gross interest: ₦5,000,000 × 18% × 180 ÷ 365 = ₦443,835.62.
- 10% withholding tax deducted in Nigeria: ₦44,383.56.
- Net interest: ₦399,452.06, so ₦5,399,452.06 is due at maturity.
BusinessDay reported in February 2026 that the 10% deduction is treated as final tax for individual savers in Nigeria. In the UK the gross interest is reportable on Self Assessment; see declaring Nigerian bank interest to HMRC.
Questions to ask before maturity day
A two-line email a fortnight before maturity saves most of the trouble. Ask the bank to answer each of these in writing:
- What rate will apply if the deposit rolls over, and for which tenor?
- Is the rate better for a longer tenor or a larger sum, and by how much?
- Which account will be credited if I liquidate, and is that account active and fully documented?
- Do you need a call-back or a fresh copy of my ID before acting on an emailed instruction?
- What is the cut-off time on maturity day for my instruction to take effect?
The account question matters more than it looks. If the naira account that receives the proceeds has been restricted for missing KYC documents, or has gone dormant, the money can arrive and then be stuck. Updating your address and ID from the UK is covered in updating a Nigerian bank account with a UK address. If you have named a relative in Nigeria to deal with the bank, a written mandate from you must already be on file; the bank will not act on a phone call from them.
Moving the proceeds
Once the money sits in your naira account, you have three options. Keep it in naira for family costs or a new deposit. Convert it to foreign currency through your bank and hold it in a domiciliary account. Or convert and send it abroad. Under the CBN FX Manual that took effect in June 2026, TheCable reported no source-of-funds disclosure is needed to open or fund a domiciliary account, and transfers from a dom account of up to $10,000 a day. TheNigeriaLawyer reported that Form A is no longer mandatory for remittances from such accounts, but the two reports describe the $10,000 figure differently, so ask your bank how it applies. Our guide to wiring from a domiciliary account to the UK covers the transfer itself.
Where Pryme fits
A Pryme account holds naira alongside GBP, USD and EUR. Money stays in the currency it arrived in, and Swap converts only when you choose, with the rate shown first and the fee on its own line before you approve. A Fixed Savings Box is one place to put maturing naira, with its rate shown in the app.
Questions people ask
Will my fixed deposit roll over automatically?
Often, yes. Standard Chartered Nigeria, for example, renews for a similar tenor at the prevailing rate unless instructed. Check your own bank's terms.
Can I liquidate a Nigerian fixed deposit by email?
Most banks accept a signed letter of authority sent from your registered email. Some will call to confirm.
Is there a penalty for breaking a fixed deposit?
Usually you lose part of the interest. Standard Chartered says 20% or more; other banks set their own terms.
Can I send the proceeds to my UK account?
Yes, by converting and transferring, often through a domiciliary account. Ask your bank for its current rules and charges.
Sources
- Standard Chartered Nigeria: Fixed Deposit · accessed Oct 2026
- Zenith Bank: Customer service FAQs · accessed Oct 2026
- Arise News: CBN cuts MPR to 23% from 26.5% (22 Sep 2026) · accessed Oct 2026
- BusinessDay: Why was withholding tax deducted from savings interest (21 Feb 2026) · accessed Oct 2026
- TheCable: CBN FX Manual 2026 (3 Jun 2026) · accessed Oct 2026
- TheNigeriaLawyer: CBN grants domiciliary account holders unrestricted access (2 Jun 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.