Top Savings Platforms Paying Higher Interest Rates Than Banks in Nigeria

Top Savings Platforms Paying Higher Interest Rates Than Banks in Nigeria

  • There is an explosion of savings platforms in Nigeria which allows users the opportunity to save for various reasons and needs
  • Most of these savings platforms pay higher interest rates than traditional banks which employ official rates in determining how to pay depositors
  • Some of the platforms help schedule payments, manage your expenses and still pay you for using their platform

The Nigerian financial industry landscape is laced with interesting options, most of which give users the ability to make a choice that allows them optimal use.

While some banks in Nigeria are paying higher interest to depositors for saving money with them, others are just there to make profits and post interesting figures at the end of their financial year.

Top Savings Platforms Paying Higher Interest Rates Than Banks in Nigeria
Digital wallet and savings platforms are taking over regular banking in Nigeria Credit: Bloomberg
Source: Getty Images

The minimum interest rate approved by a regulatory agency like the Central Bank of Nigeria (CBN) is 1.5 per cent.

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In August last year, the CBN pegged the minimum interest rate payable on savings accounts in banks in the country to 10 per cent per annum of the Monetary Policy Rate (MPR).

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The MPR is currently pegged at 11.5 per cent, meaning that the banks are to pay an average interest rate of 1.15 per, that is 10 per cent of 11.5 per cent, to depositors for saving with them.

Out of 21 deposit money banks that published their rates as of March 5, 2021, Heritage Bank pays a higher interest rate on savings at an average of 4.2 per cent, according to BusinessDay.

It is followed by Suntrust Bank at 4.1 per cent, Unity Bank at 1.9 per cent, Ecobank at 1.25 per cent, Citibank and Standard Chartered Bank at 1.2 per cent each.

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However, depositors also have a choice to either leave their funds with these banks whose reason for existence is profit-making or save their money on platforms that allows them maximum interest on their money

There are wallets, digital banks that pay higher than traditional deposit money banks.

Legit.ng lists them in no particular order.

PiggyVest

Founded by Odunayo Eweniyi, a graduate of Computer Engineering from Covenant University, PiggyVest is the biggest single online savings and investment platform in Nigeria.

It was launched in 2016 and has continued to deliver top-notch services to over 3 million users as of September 2021.

The bank recently launched a Safe Lock Feature on its app that allows users to save for a particular time with a higher interest rate payable upfront. It is more like a Fix Deposit account.

Depending on the needs, PiggyVest pays its users between 10 to 13 per cent interest on savings per annum.

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Cowrywise

A wealth management system, Cowrywise enables users to plan, save and invest easily. It has direct access to the largest pool of mutual funds in Nigeria. You can build your savings and investment portfolios and manage your money securely.

CowryWise has an interest calculator that determines how much interest users earn in a particular period.

Cowrywise offers different types of saving circles tailored to anyone.

Kuda Bank

Touted to be the first digital-only bank in Nigeria, Kuda Bank is a free microfinance bank licensed by the Central Bank of Nigeria.

It tracks your spending habits, saving more, and making the right financial decisions for you.

Kuda Bank offers you up to 25 free transfers to other banks monthly. It has over 1 million downloads across all major mobile devices.

The bank offers up to 15% annual interest on your savings.

Interest is accrued daily with rates between 12.5 to 15% per annum on the platform.

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CrowdyVest

CrowdyVest offers different savings plans to help users maximize their savings on their platform. Users can start saving and enjoying interest rates from 12.5% – 15% on their savings, depending on saving plan.

Now CrowdyVest offers the following saving plans:

  • Vault Plan: For a locked fixed amount for a number of months
  • Pace Plan: To help users meet recurring needs
  • Flex Plan: Allows users to withdraw funds anytime they want.

VestPay

A savings and investment platform, Vestpay solves the issue of safe investment opportunities, savings culture and wealth creation prevalent, according to Nairametrics.

It offers 15 per cent on target savings and a variety of investment options ranging from livestock to crop and real estate.

Hot business ideas on Legit.ng

Legit.ng had reported top platforms to save money in 2021. The report listed hot business ideas in Nigeria is made up of effective, time tested business ideas that guarantee you will get a high return on investment.

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These ideas are carefully selected out of numerous ones that will surely help you to make a profit.

Each of these businesses is relevant in 2021 and up to date in Nigeria.

Source: Legit.ng

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