Fidelity Bank introduces flip account
Fidelity Bank Ghana Limited, one of the latest banks in the country has launched its Fidelity Lifestyle Investment Plan (FLIP) Account. The account is an investment product that enables an individual to switch over from a pro-expenditure lifestyle to a wealth creation lifestyle.
The FLIP Account guarantees 91-day Treasury bill yield; it is a capital accumulation plan (CAP) which encourages accumulation of wealth through a consistent monthly payment of contributions; and it is a credit facility that ensures instant liquidity at the time of need.
The deputy managing director of the bank, Jim Baiden, noted that the account requires a minimum ¢500,000 contribution every month and by signing onto the account, the client qualifies for a FLIP Loan.
The bank gives the account holders the equivalent of 80% of his or her FLIP balance as a loan within one hour.
Baiden indicated that the Flip loan's interest rate is Fidelity Bank's base rate of 19.0% minus 1 percent at any time. However, the bank offers free investment advisory services as the flip loan has up to 36 months repayment period.
The bank rolled over from a discount house into a universal bank last year with a balance sheet size of about ¢500 billion, and has since increased to about ¢1.1 trillion. The bank has also mobilised deposits of about ¢1 trillion from over 9,000 of its customers.