Fixed Deposit Agreement (Ghana)
Fixed Deposit Agreement
THIS FIXED DEPOSIT AGREEMENT (this "Agreement") is made on [Agreement Date] between:
DEPOSITOR: [Depositor Name] (ID: [Depositor ID Number]), of [Depositor Address] (the "Depositor"); and
BANK: [Bank Name], [Bank Branch], a bank / specialised deposit-taking institution (SDI) licensed by the Bank of Ghana under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) (the "Bank").
1. Fixed Deposit
The Depositor places a fixed deposit with the Bank in the following amount and currency: [Deposit Currency] [Deposit Amount] (the "Deposit").
The Deposit shall be held for a fixed tenure of [Deposit Tenure], commencing on [Agreement Date] and maturing on [Maturity Date] (the "Maturity Date").
The Bank shall pay interest on the Deposit at a fixed rate of [Interest Rate PA]% per annum, calculated on the Deposit principal on a simple interest basis, payable [Interest Payment Frequency].
Interest and principal shall be credited to: [Credit Account].
2. Withholding Tax
The Bank shall deduct withholding tax on interest earned on the Deposit at the rate of [Withholding Tax Rate] and remit the tax to the Ghana Revenue Authority (GRA) in accordance with the Income Tax Act 2015 (Act 896). Net interest after withholding tax deduction shall be credited to the Depositor's account.
The Bank shall issue a Withholding Tax Certificate to the Depositor as documentary evidence of tax deducted.
3. Early Withdrawal
Withdrawal of the Deposit before the Maturity Date is subject to the following penalty: [Early Withdrawal Penalty]. The Depositor acknowledges that early withdrawal will result in a reduction of the interest earned.
To request early withdrawal, the Depositor must give the Bank written notice at the branch where the Deposit was placed. The Bank will process the withdrawal within the period specified in the Bank's current terms and conditions.
4. Maturity and Rollover
On the Maturity Date, the Deposit shall be dealt with as follows: [Rollover Instruction].
The Depositor may change the rollover instruction by notifying the Bank in writing at least 5 business days before the Maturity Date.
5. Deposit Protection
The Deposit is an eligible deposit protected by the Ghana Deposit Protection Corporation (GDPC) under the Ghana Deposit Protection Act 2016 (Act 931) up to the prescribed coverage limit of GHS 50,000 per depositor per licensed institution.
6. Governing Law
This Agreement is governed by the laws of Ghana. Any dispute arising under this Agreement shall be referred to the High Court (Commercial Division) in Accra or resolved through the Bank of Ghana's consumer redress mechanism under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930).
Execution
IN WITNESS WHEREOF the Parties have signed this Fixed Deposit Agreement on the date first written above.
Depositor
________________
Signature
Bank Authorised Officer
________________
Signature
What Is a Fixed Deposit Agreement (Ghana)?
A Fixed Deposit Agreement in Ghana governs the relationship between the parties by fixing what each must do.
Section 42 of the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) governs the acceptance of deposits by banks and SDIs licensed by the Bank of Ghana. The Bank of Ghana (BoG), established under the Bank of Ghana Act 2002 (Act 612), is Ghana's central bank and the prudential supervisor of all licensed deposit-taking institutions. Banks licensed to accept fixed deposits in Ghana include commercial banks — such as GCB Bank Limited, Ecobank Ghana Limited, Absa Bank Ghana Limited, Standard Chartered Bank Ghana Limited, Fidelity Bank Ghana Limited, Access Bank Ghana Limited, and Zenith Bank Ghana Limited — as well as savings and loans companies, microfinance companies, and rural and community banks regulated by the Bank of Ghana.
The Ghana Deposit Protection Corporation (GDPC), established under the Ghana Deposit Protection Act 2016 (Act 931), protects depositors by insuring eligible deposits at Bank of Ghana-licensed institutions up to a prescribed coverage limit per depositor per institution. As at 2025, the GDPC coverage limit is GHS 50,000 per depositor per licensed bank. Fixed deposits at Bank of Ghana-licensed banks fall within the GDPC protection scheme, providing depositors with a safety net against bank insolvency.
Interest earned on fixed deposits in Ghana is subject to withholding tax (WHT) deducted at source by the bank at the rate of 8% for resident individuals under the Income Tax Act 2015 (Act 896) administered by the Ghana Revenue Authority (GRA). For corporate depositors, the WHT rate on investment income may differ; depositors should confirm current rates with their bank and the GRA.
A Fixed Deposit Agreement in Ghana must be distinguished from a Savings Account Agreement (which allows flexible withdrawals without a fixed term), from a Treasury Bill (a short-term government security issued by the Bank of Ghana on behalf of the Ministry of Finance), and from a Unit Trust Investment (a collective investment scheme regulated by the Securities and Exchange Commission, SEC, under the Securities Industry Act 2016, Act 929).
The legal framework governing the Fixed Deposit Agreement (Ghana) in Ghana draws on several key statutes and regulatory bodies. Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Parties executing a Fixed Deposit Agreement (Ghana) in Ghana should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Banks and SDIs Act 2016 (Act 930) sets the foundational requirements.
When Do You Need a Fixed Deposit Agreement (Ghana)?
A Fixed Deposit Agreement in Ghana is needed whenever a depositor places funds with a Bank of Ghana-licensed bank or specialised deposit-taking institution for a defined period at a guaranteed interest rate under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930).
A Fixed Deposit Agreement is required when an individual in Ghana places a lump sum — such as proceeds from the sale of property, a redundancy payment, or savings accumulated over time — in a fixed deposit account at a Bank of Ghana-licensed commercial bank to earn a higher interest return than a regular savings account offers, and requires a written record of the agreed interest rate and maturity date.
A Fixed Deposit Agreement is needed when a company incorporated under the Companies Act 2019 (Act 992) and registered with the Office of the Registrar of Companies (ORC) places its surplus cash reserves in a fixed deposit at a Bank of Ghana-licensed bank as a short-term cash management strategy, and the company's board of directors or finance committee requires formal documentation to satisfy corporate governance and audit requirements.
A Fixed Deposit Agreement is required when a Ghanaian institution — a pension fund regulated by the National Pensions Regulatory Authority (NPRA), an insurance company regulated by the National Insurance Commission (NIC), or a securities investment fund regulated by the Securities and Exchange Commission (SEC) — places funds in a fixed deposit as part of its approved investment portfolio and requires a written agreement for portfolio compliance and reporting purposes.
A Fixed Deposit Agreement is needed when a non-governmental organisation (NGO) or foundation in Ghana places grant funds or endowment capital in a fixed deposit at a licensed bank pending disbursement, and requires the written agreement to document the placement for audit, donor reporting, and financial statement preparation purposes.
A Fixed Deposit Agreement is required when a depositor in Ghana places funds in a fixed deposit denominated in a foreign currency — US Dollars (USD), British Pounds (GBP), or Euros (EUR) — at a Bank of Ghana-licensed bank that offers foreign currency fixed deposits, subject to the Bank of Ghana's Foreign Exchange Act 2006 (Act 723) requirements.
Parties should confirm the current interest rate environment set by the Bank of Ghana's Monetary Policy Committee (MPC), as the Bank of Ghana's policy rate influences the rates offered by licensed banks on fixed deposits in Ghana.
What to Include in Your Fixed Deposit Agreement (Ghana)
A valid Fixed Deposit Agreement in Ghana under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) must contain the following essential elements.
Parties: Full legal name, address, and identification details of the depositor — national identity card or passport number for individuals; ORC company registration number for corporate depositors under the Companies Act 2019 (Act 992). Full name and Bank of Ghana licence number of the receiving bank or specialised deposit-taking institution (SDI).
Deposit Amount and Currency: The principal deposit amount in Ghana Cedis (GHS) or, where agreed, in a foreign currency (USD, GBP, or EUR) permitted by the Bank of Ghana under the Foreign Exchange Act 2006 (Act 723). The amount should be stated in both figures and words.
Tenure and Maturity Date: The fixed deposit period in days or months (e.g., 30 days, 3 months, 6 months, 1 year, 2 years, 3 years) and the specific maturity date on which the principal and accrued interest become repayable.
Interest Rate and Payment: The agreed annual interest rate expressed as a percentage per annum; whether interest is calculated on a simple or compound basis; the frequency of interest payment (monthly, quarterly, or on maturity); and the account into which interest and principal will be credited on maturity.
Withholding Tax: Confirmation that the bank will deduct withholding tax on interest earned at the applicable rate under the Income Tax Act 2015 (Act 896) and remit it to the Ghana Revenue Authority (GRA) before crediting net interest to the depositor.
Early Withdrawal: The conditions and penalties for withdrawal before maturity — typically a reduction in the interest rate (e.g., to the bank's prevailing savings rate) and/or an early withdrawal fee — and the minimum notice period required for early withdrawal.
Rollover: Whether the deposit automatically rolls over on maturity at the then-prevailing rate, or whether the bank must seek fresh instructions from the depositor before rollover.
Ghana Deposit Protection Corporation (GDPC): Confirmation of the deposit's eligibility for GDPC protection under the Ghana Deposit Protection Act 2016 (Act 931) up to the prescribed coverage limit of GHS 50,000 per depositor per licensed institution.
Governing Law: Ghana law, with disputes referred to the High Court (Commercial Division) in Accra or resolved through the Bank of Ghana's consumer redress mechanism under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930). Forms-legal.com provides this template as a starting point; depositors should read the bank's terms and conditions carefully before executing the agreement.
Additional compliance elements for a Fixed Deposit Agreement (Ghana) used in Ghana include: Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.
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}Frequently Asked Questions
Interest rates on fixed deposits in Ghana vary by bank, deposit amount, and tenure, and are influenced by the Bank of Ghana's (BoG) Monetary Policy Rate (MPR) set by the Monetary Policy Committee (MPC). As of early 2026, following a period of elevated inflation, Bank of Ghana-licensed commercial banks in Ghana generally offer fixed deposit rates ranging from approximately 18% to 30% per annum on GHS-denominated deposits, depending on tenure and the size of the deposit. Longer tenures and larger deposit amounts typically attract higher rates. Foreign currency fixed deposits (in USD, GBP, or EUR) typically attract lower rates of 2% to 6% per annum, reflecting the lower international interest rate environment and Bank of Ghana regulatory requirements on foreign currency placements. Rates at savings and loans companies and rural and community banks licensed by the Bank of Ghana may be higher than commercial bank rates, reflecting the different risk profiles of these institutions. Depositors should compare rates across Bank of Ghana-licensed institutions and confirm whether the rate is fixed for the full tenure or subject to variation.
Yes. Interest earned on fixed deposits at Bank of Ghana-licensed banks and specialised deposit-taking institutions in Ghana is subject to withholding tax (WHT) under the Income Tax Act 2015 (Act 896) administered by the Ghana Revenue Authority (GRA). For resident individual depositors, the WHT rate on interest income is 8% of the gross interest earned; the bank deducts this amount at source and remits it to the GRA before crediting the net interest to the depositor. The 8% WHT is a final tax for resident individuals, meaning the depositor does not need to include the interest income in a separate personal income tax return. For corporate depositors, interest income is included in the company's taxable income and taxed at the applicable corporate income tax rate (25% for most companies), with the 8% WHT treated as a credit against the final tax liability. Non-resident depositors are subject to WHT at the rate of 8% or the applicable double tax treaty rate. Depositors should request a WHT certificate from their bank as documentary evidence of tax deducted for their GRA tax records.
If a Bank of Ghana-licensed bank or specialised deposit-taking institution fails in Ghana, depositors are protected by the Ghana Deposit Protection Corporation (GDPC), established under the Ghana Deposit Protection Act 2016 (Act 931). The GDPC insures eligible deposits — including fixed deposits — up to a coverage limit of GHS 50,000 per depositor per licensed institution as at 2025. Depositors with balances above GHS 50,000 in a single institution are exposed to losses on the unprotected portion in the event of bank failure; diversifying fixed deposits across multiple Bank of Ghana-licensed institutions is advisable for large depositors. Where a bank fails, the Bank of Ghana as the prudential supervisor under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) will appoint a receiver or administrator. The GDPC pays out protected deposits promptly after the Bank of Ghana confirms the failure. Ghana's banking sector reform programme following the 2017-2019 banking crisis — during which 9 banks were revoked and the GDPC paid out covered deposits — demonstrated the functioning of the deposit protection system. Depositors should verify that their institution holds a current Bank of Ghana licence before placing fixed deposits.
A company incorporated in Ghana under the Companies Act 2019 (Act 992) may place a fixed deposit in foreign currency — US Dollars (USD), British Pounds (GBP), Euros (EUR), or other designated foreign currencies — at a Bank of Ghana-licensed commercial bank that offers foreign currency deposit accounts, subject to compliance with the Foreign Exchange Act 2006 (Act 723) administered by the Bank of Ghana. Under Act 723 and Bank of Ghana foreign exchange regulations, Ghanaian residents — including Ghanaian-incorporated companies — are generally required to conduct transactions in Ghana Cedis (GHS) for domestic purposes. Foreign currency deposits are permitted for companies that receive foreign currency income — such as export proceeds, remittances, or international service fees — and must hold the foreign currency to meet future foreign currency obligations. A company cannot simply convert GHS to foreign currency for the sole purpose of earning a higher foreign currency deposit rate; such transactions may require Bank of Ghana approval under Act 723. Foreign investors and non-resident companies operating in Ghana face a different foreign currency deposit framework under the GIPC Act 2013 (Act 865) and Bank of Ghana guidelines for non-resident accounts.
The minimum fixed deposit amount in Ghana varies by bank and deposit product. At Bank of Ghana-licensed commercial banks such as GCB Bank, Ecobank Ghana, Absa Bank Ghana, and Standard Chartered Bank Ghana, the minimum fixed deposit amount for individual depositors typically ranges from GHS 500 to GHS 5,000, while premium or high-net-worth fixed deposit products may have minimum amounts of GHS 50,000 or more. Corporate fixed deposit accounts at commercial banks usually have minimum amounts of GHS 10,000 to GHS 50,000. Rural and community banks and savings and loans companies licensed by the Bank of Ghana may accept lower minimum amounts, making fixed deposits accessible to small-scale savers in peri-urban and rural areas of Ghana. The minimum tenure for a fixed deposit at most Bank of Ghana-licensed banks is 30 days, with maximum tenures typically capped at 36 months, though some banks offer longer-term deposits. Depositors should obtain the bank's current fixed deposit rate sheet and terms and conditions before executing a Fixed Deposit Agreement, as rates and minimum amounts are subject to change by the bank in line with market conditions and Bank of Ghana monetary policy.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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