DoubleChecks

What was claimed

Lock N500m in a reputable bank, spend only the dividends at 18-25% interest (N100m guaranteed every year from N500m). Never touch the principal no matter what - people who do are complete idiots.

Our verdict

Inaccurate

NDIC deposit insurance covers a limited amount per depositor per bank (recently raised to levels such as ₦5,000,000 for DMBs), which is far below ₦500m, so the full principal would not be insured if a bank failed. Available recent market data shows varying rates rather than a guaranteed 18–25% return. Reported one-year Treasury-bill true yields range from about 18.89% to 21.34%, with some stop rates below 18%.

Combined assessment17 sourcesChecked Oct 26, 2026

Why this verdict

  • Deposits of ₦500m are protected/guaranteed by deposit insurance.

    Incorrect
    One assessment reached this conclusion

  • Locking ₦500 million in a reputable bank will provide 18–25% interest annually.

    Incorrect
    One assessment reached this conclusion

  • A reputable bank makes the entire ₦500 million safe.

    Incorrect
    One assessment reached this conclusion

  • 18-25% interest rates are available from reputable banks in Nigeria

    Misleading
    One assessment reached this conclusion

Evidence reviewed

17 sources

Perplexity, Claude and ChatGPT sources are combined here.

ndic.gov.ngndichelpdesk.zohodesk.comndic.gov.ngbusinessday.ngndic.gov.ngbusinessday.ngbusinessday.ngbusinessday.ngthegazette.ngbusinessday.ng

Individual assessments

Assessment summary

  • The claim incorrectly presents 18–25% annual interest as guaranteed.
  • Recent Nigerian fixed-income rates vary, and cited Treasury-bill yields range below 18% to about 21%, not a guaranteed 25%.businessday.ng businessday.ng businessday.ng A ₦500 million deposit also greatly exceeds NDIC insurance coverage of ₦5 million for deposit money banks, leaving most of the principal uninsured at one institution.ndic.gov.ng ndic.gov.ng

Claims reviewed

Locking ₦500 million in a reputable bank will provide 18–25% interest annually.

Incorrect
Available recent market data shows varying rates rather than a guaranteed 18–25% return. Reported one-year Treasury-bill true yields range from about 18.89% to 21.34%, with some stop rates below 18%.businessday.ng businessday.ng businessday.ng

This claim may mislead readers without added context.

A reputable bank makes the entire ₦500 million safe.

Incorrect
NDIC coverage for deposit money banks is limited to ₦5 million per depositor under the cited revised limits, so a ₦500 million balance is not fully insured at one institution.ndic.gov.ng ndic.gov.ng

This claim may mislead readers without added context.

The principal can be preserved indefinitely by spending only the interest.

Misleading
Preserving nominal principal requires a stable return at least equal to withdrawals and ignores inflation, taxes, rate changes, and possible bank or investment risk. The statement also fails to address that most of ₦500 million would exceed NDIC coverage at one bank.ndic.gov.ng ndic.gov.ng

This claim may mislead readers without added context.

Assessment summary

  • The response contains partially accurate financial information but conflates different product types and uses misleading language.
  • While 18-25% rates exist in Nigeria's market, they are not standard offerings from "reputable banks"—they come from fintech platforms and merchant banks.
  • The mathematical calculation is correct, but the "guaranteed" framing is misleading since rates fluctuate.
  • The dehumanizing language also undermines credibility.

Claims reviewed

N100m guaranteed every year from N500m at 18-25% interest

Misleading
The mathematical calculation is correct (20% of N500m = N100m), but the word 'guaranteed' is misleading. Interest rates fluctuate based on CBN policy and economic conditions, so annual returns cannot be guaranteed in perpetuity.

This claim may mislead readers without added context.

18-25% interest rates are available from reputable banks in Nigeria

Misleading
While 18-25% rates do exist in Nigeria's market, they come primarily from fintech platforms and merchant banks, not traditional commercial banks. Traditional banks offer 1-13% depending on product type. The claim conflates different product categories.

This claim may mislead readers without added context.

People who touch the principal are complete idiots

Misleading
This is dehumanizing language that lacks nuance. Financial decisions depend on individual circumstances—emergencies, health crises, or changing needs may justify accessing principal. Absolute statements ignore legitimate exceptions.

This claim may mislead readers without added context.

Assessment summary

  • The statement makes a strong, objectively false claim that ₦500m will "guarantee" ₦100m annually at 18–25% from a bank.
  • Banks sometimes offer high fixed-deposit rates, but such high rates are not universally available or guaranteed, and deposit insurance does not cover large sums like ₦500m fully.
  • The response also includes a value judgment (calling people idiots) that is not a factual claim and cannot be validated.

Claims reviewed

Deposits of ₦500m are protected/guaranteed by deposit insurance.

Incorrect
NDIC deposit insurance covers a limited amount per depositor per bank (recently raised to levels such as ₦5,000,000 for DMBs), which is far below ₦500m, so the full principal would not be insured if a bank failed ndic.gov.ng cbn.gov.ng.

This claim may mislead readers without added context.

Lock N500m in a reputable bank, spend only the dividends at 18-25% interest (N100m guaranteed every year from N500m).

Misleading
Some Nigerian banks and short-term fixed products have advertised rates in the high teens to mid-20s% for specific tenors checkinvestng.com thecowriereport.com, but such rates are not universally guaranteed for a long-term deposit, are subject to taxes, tenure and bank terms, and interest payments are not insured or "guaranteed" for large balances like ₦500m ndic.gov.ng cbn.gov.ng.

This claim may mislead readers without added context.

Never touch the principal no matter what - people who do are complete idiots.

Can’t verify
This is an opinion/advice, not a factual claim; whether one should preserve principal depends on individual goals, risk tolerance, inflation, taxes and product terms, so it cannot be categorically verified as true or false.

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