EDITOR’S NOTE: This article has been updated to reflect new money saving apps that you can use to earn good returns on your money. I had a chat with a friend a few weeks ago and somehow the discussion veered into personal finance a la money saving apps and investments etc.
Now I’m the first to raise my hands and say I suck at saving/investing. I feel like I save too little and too irregularly. But I’m deciding to do something about it like learning tricks to save money on things like electricity.
Back to the story I asked, out of curiousity, whether she has somewhere she puts away money. She mentioned a certain bank/insurance saving product that pays, wait for it! 5% per annum. I was surprised and then upset. Then I realised there was likely a lot of people like her – putting money into savings or investment plans that paid too little and below the inflation rate. Save N1 million that way and after one year the N1 million plus the interest will be worth less than it is today.
So what are the ways you can save/invest your money to yield the highest possible annual interest while being sure your money is relatively save? Note that an investment/savings product should have a high level of security and return decent interest. With inflation and rising costs of living the best thing you can do is put your money to work to earn more for you. Simply leaving your money in a bank savings account that pays little or no interest is not a wise decision. So we looked at various options and here are some apps that enable you save/money at good annual returns. They all have at least 24/48 hours withdrawal.
Money Saving Apps
Over the past few years several fin-tech companies with focus on helping people save and earn decent interest on their saved money have become even more popular. It is easy to see why. Before now you could leave N1 million in your bank savings account without withdrawing/touching it and you will be lucky to get a paltry 1 or 2% interest annually on it. Enter Savings/investment apps that encourage people to save their money and earn anywhere between 10 – 25% interest on it. So basically in one way they promise much higher interest if you save your money with them than with a traditional bank. And for some of them is the beauty of monitoring your accumulating interests via the digital app. The more popular ones include;
- Piggyvest: Piggyvest started as Piggybank in 2016 as a savings only platform. It offers customers/users between 10 – 15% interest on saved amount per annum. Users can transfer money they intend to save or fund their savings account with a credit/debit card. The app lets you save in Naira and also in US dollar with the dollar savings paying 6% interest annually. There is also the Safelock feature which allows you lock away money you don’t want to be tempted to touch in return for up to 15% interest.
- Cowrywise: Cowrywise is yet another savings app launched in 2017. It offers users the opportunity to save their money and earn interest. The app allows you choose different savings options to meet your goals. On Cowrywise you can earn up to 15% annual interest on the amount you save.
- ALAT: ALAT is a digital only bank set up by Wema Bank. Launched in 2017 ALAT lets you set savings goals. You receive a physical debit card which lets you withdraw money from anywhere. You can earn up to 10% annual interest when you save money on ALAT.
- OPAY: OPay’s Owealth offering enables you leave your idle money to earn interest. Depending on the minimum balance required one can earn at least 15% annual interest. According to the app they pay the interest daily to your account.
- JOLLOF+: This relatively new entrant promises annual interests of as high as 20% on your saved money.
- KUDA: Kuda become popular as a digital bank for the young and digital savvy. It has introduced fixed savings that pays 12% annual interest or more on your savings.
- FAIRMONEY: Fairmoney is a microfinance bank with a digital app that allows users save money and earn up to 17% annual interest or more depending on the savings plan they choose.
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NOTE: This article does not constitute financial advice. Nairabrains will not be responsible for any decisions taken as a result of reading this article. Kindly consult your financial advisor or seek professional financial advice.