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The short answer
You can keep a naira fixed deposit with a Nigerian bank after moving to Australia, as long as the account stays active and the bank can reach you. Interest is fixed for a term (Zenith, for example, starts at 30 days), many banks roll it over at the prevailing rate unless you instruct otherwise, and banks deduct 10% withholding tax from the interest. With Nigerian inflation at 14.63% in September 2026, your net rate needs to beat that just to hold value in naira.
Many Nigerians in Australia keep savings at home: money set aside before moving, rent from a property, or funds for family. A fixed deposit is often where it sits. This guide explains how it works, what to watch when you are not in the country, and how to judge whether it is earning anything after tax and inflation.
How a naira fixed deposit works
You lock an amount with a bank for a set tenor at an agreed rate, and the bank pays interest at maturity or, on some products, periodically. Zenith Bank's FAQs say its fixed deposit has a minimum tenor of 30 days, is opened or liquidated by a signed letter of authority stating the account number, amount, tenor and agreed rate, earns simple interest, and has 10% withholding tax deducted. Standard Chartered Nigeria's product page describes tenors from 30 to 365 days and interest on a 365-day basis for naira.
Rollover, early exit and staying in control from abroad
- Rollover: Standard Chartered says deposits roll over for a similar tenor at the "prevailing system rate". That rate can be lower than your original one. If you want the money paid out, instruct the bank before maturity.
- Early exit: breaking a deposit usually costs interest. Standard Chartered says early liquidation forfeits "20% or more" of the interest, and interest already paid can be deducted from principal.
- Instructions from abroad: because many banks act on a signed letter or an online request, check that your internet banking, registered phone number and email still work from Australia.
- Account status: banks may restrict dormant accounts. Log in and transact periodically, and keep your BVN-linked phone number active.
Tax: Nigeria first, then Australia
Nigerian banks deduct 10% withholding tax on interest. A February 2026 BusinessDay report quoted Forvis Mazars describing it as a final tax for individual savers, and said banks applied it in January 2026 statements.
In Australia, tax residents generally declare foreign interest as income. Australia is not on Nigeria's list of treaties in force (FIRS circular 2022/15). Keep the bank's interest advice or statement showing the tax deducted; you will need it for your Australian return. Our article on claiming the foreign income tax offset explains the ATO side.
Worked example: what inflation does
Example only. Suppose you place ₦5,000,000 for 90 days at an example rate of 18% a year, simple interest on a 365-day basis.
| Item | Amount |
|---|---|
| Gross interest: ₦5,000,000 x 18% x 90/365 | ₦221,917.81 |
| Withholding tax at 10% | ₦22,191.78 |
| Net interest | ₦199,726.03 |
| Net annual rate (18% less 10% of it) | 16.2% |
| Headline inflation, Sept 2026 (NBS) | 14.63% |
| Approximate real return: 1.162 / 1.1463 - 1 | about 1.4% a year |
At that example rate you barely stay ahead of inflation in naira terms. In Australian dollar terms the result also depends on the exchange rate when you convert, which can wipe out or add to the return. Check the bank's actual quoted rate, and the inflation figure for the latest month from the NBS, before you roll over.
Before each maturity: a short checklist
- Ask the bank for its current rate for the tenor you want, in writing.
- Compare it with the latest NBS inflation figure and with Treasury bill rates, which you can also buy from abroad (see our guide to Treasury bills from Australia).
- Decide whether you will need the money in naira in Nigeria (school fees, building, family) or in Australian dollars.
- Send a dated instruction: roll over principal only, principal and interest, or pay out to a named account.
- Keep the interest advice showing the 10% deducted for your Australian records.
When a naira deposit makes sense, and when it may not
A naira deposit suits money that will be spent in naira: a relative's allowance, a building project, rent you are saving for, or a trip home. Converting that money to Australian dollars and back costs you twice in exchange margins. Money you will eventually bring to Australia is different: its value in AUD depends on the exchange rate on the day you convert, so a high naira rate can still leave you with less in Australian dollars than you started with.
Deposit insurance
NDIC cover is per depositor per bank. Since May 2024 the limits have been ₦5m for commercial banks and ₦2m for microfinance banks, according to an SCP Law summary of the change. A large deposit at one bank is insured only up to that limit.
Where Pryme fits
Pryme's Savings Boxes are for naira held in Nigeria and include a Fixed Box; the rate is shown in the app before you commit. Naira deposits are held by a licensed Nigerian microfinance bank, regulated by the CBN and insured by the NDIC up to the applicable limit. You can open a Pryme Personal account from Australia. For a wider comparison, see the Nigeria library's fixed deposit vs savings account guide and our article on converting naira savings to AUD.
Questions people ask
Can I keep my fixed deposit in Nigeria after relocating?
Yes, banks do not require you to close it. Keep your contact details current, your account active, and give maturity instructions in writing.
Is withholding tax deducted from fixed deposit interest in Nigeria?
Yes. Banks deduct 10% from interest, and reports in 2026 describe it as a final tax for individual savers.
What happens when my fixed deposit matures and I am abroad?
Many banks roll it over for a similar tenor at the prevailing rate unless you instruct otherwise, so send instructions before maturity.
Do I declare Nigerian interest to the ATO?
Australian tax residents generally declare foreign interest. Keep the Nigerian statement showing the tax deducted.
Sources
- Zenith Bank: Customer service FAQs · accessed Oct 2026
- BusinessDay: Why was withholding tax deducted from savings interest (21 Feb 2026) · accessed Oct 2026
- Voice of Nigeria: headline inflation drops to 14.63 per cent (16 Oct 2026) · accessed Oct 2026
- Standard Chartered Nigeria: Fixed deposit · accessed Oct 2026
- SCP Law: NDIC's new deposit insurance coverage (27 May 2024) · 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.