Best Savings Platforms In Nigeria That Pays Higher Interest Rates
The need for savings especially among young Nigerians who are left to fight their way to financial freedom through the little money they earn from various sources cannot be overemphasized. We all know that commercial banks are the most popular choice for savings aside from contribution and thrift schemes that mostly go on in rural areas of Nigeria.
Even though the two major reasons for saving money in digital savings apps in Nigeria are to raise some money over a savings period and earn interest in your money, Nigerian banks seem to perform poorly are regard to interest.
These and some other reasons have led to the emergence of other digital savings apps in Nigeria that helps Nigerian savers to save money and earn higher interest rate than commercial banks.
According to a one-stop comprehensive reference for international financing and investment, Deposits.org — the interest rate for savings accounts in Nigeria can be up to 3.6% (as at June 2018). This is way much smaller when compared to how much interest rate banks charge for a loan which is as high as 19% and 22% for personal loans.
Read: 10 reasons why you must start saving
Even though the banks have other packages (Like fixed deposits) that offer higher interest rates, these 6 platforms digital savings platforms mentioned in this article are dedicated to paying a higher interest rate on savings than banks.
Are you looking for
- where to save money in Nigeria and get a higher interest payout
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Then, this article is for you. Below are;
Online Savings Platforms In Nigeria That Pay Higher Interest Rates Than Banks
SumoTrust is an online savings platform that helps you save and invest money automatically. The platform is targeted to Africans and pays 10-24% interest Annually.
One Good feature that made SumoTrust number one on this list is its quest to raise 1 Million African entrepreneurs in partnership with Entrepreneur Platform to access Free Online Business Academy for its users and African business forum to collaborate and work with like minds in building better and sustainable businesses.
With Sumotrust, you also get access to various business leaders in different industries at discounted fees (for business consultations) to help you grow and scale your business.
Even though you can use Sumo Bank to save for any reason (Business, travel, school, emergency funds, school fees, shopping, property, etc) its core value is tailored to helping young Nigerian/Africans save money over time and start their own business.
Sign up and start saving with Sumo Bank at Sumotrust.com
Piggybank just like Sumobank is an online and mobile app savings platform poised to help young Africans save money automatically. With PiggyBank, you enjoy flexible savings which allows you to save daily, weekly, or monthly. Users on Piggybank can save towards a specific target or choose to place a withdrawal restriction on the account. There is a limit to the amount of money that can be saved on one’s account at a time.
On the Piggybank digital savings platform, there is an allowance for 4 free-of-charge withdrawals annually which comes quarterly, (the last day of every quarter). You can also choose your own free withdrawal dates and withdrawals outside these 4 days attract a service charge of a 5% withdrawal fee.
CowryWise is another saving and investment platform that pays higher interest rates. You can also access loans on the CowryWise platform. A high saving score increases the chances of getting a loan on CowryWise. The online savings platform pays 10-15% Interest annually and it’s paid on a daily basis to your account.
ALAT by WEMA is the first fully digital banking experience, that not only offers you basic banking services but also allows you to pay bills through the Alat platform. The bank’s debit card is delivered to the account holder’s address at no cost.
Note: Just like with traditional banks, ALAT charges you a monthly debit card maintenance fee.
Also, the interest of 4.2% is paid to a user on the condition that you do not withdraw more than 3 times a month. ALAT has some savings plans that offer up to a 10% interest rate. One of them allows you to withdraw 50% of your savings once every 30 days while another doesn’t allow withdrawal.
Related: Best investment opportunities in Nigeria
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KoloPay
The KoloPay Savings platform in Nigeria allows you to save money towards planned goals over a period of time. One remarkable feature with KoloPay is that you can’t withdraw some part of your savings, but can only withdraw the whole amount even before a goal’s due date.
The KoloPay platform allows you to share your savings goal with anyone (friends and family) and lets them help contribute to the achievement of the set target.
The KoloPay savings platform pays you 6% interest per annum.
6. PayDay by ARM
PayDay by ARM allows you to create a savings goal and invest the fund on behalf of the savers in a mutual funds account.
The online savings platform in Nigeria pays you a 12.6% Interest rate. The minimum withdrawal is 1000 naira with a NEFT Withdrawal charges fee of ₦52.50.
You will need a debit card to fund your PayDay account, Investors attract a 1% convenience charge from the card payment platform provider. The charge is capped at a maximum of ₦1,500
Related: Best investment banks in Nigeria
The Rankings are based on my personal view and opinion which were picked from the following points below.
- Interest payout
- Value added to users
- Customer support
- Trust
Other list of recommended Online savings apps in Nigeria include:
7. Palmpay
8. Fairmoney
9 . KudaBnak
10. Opay
11. V-Bank
12. DigitalKolo
Let me know what you think in the comment section.
Related: How to save if you’re planning on buying a house
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