Saving money is an essential part of personal finance and can be the key to achieving financial stability and independence. About five years ago, the only way to save money was in savings accounts housed in traditional banks.
While this worked well for most people, it became increasingly hard to do so because of key factors like a reduction in interest rates and numerous charges on the account. This made many Nigerians lose faith in savings and wonder how to save to save money in Nigeria.
Today, all that has changed with the advent of money-saving apps in Nigeria. These apps often help people save with little to no charges and you can earn high-interest rates with them. In this article, we will explore the importance of savings and why saving money in apps is the better option, and help you identify the apps with the best interest rate savings.
Why is savings important?
Saving money is important for a number of reasons. Firstly, it helps you to manage your expenses and avoid overspending. By setting aside a certain amount of money each month, you can ensure that you have enough money to cover your basic needs, such as food, rent, and bills.
Secondly, personal savings can provide a safety net in case of emergencies. It is essential to have some money saved up for unexpected expenses, such as medical bills or car repairs. By having a savings account, you can avoid going into debt or relying on credit cards to cover such expenses. It also provides peace of mind and reduces financial stress. Check out FairMoney’s savings account benefits in our website here.
Thirdly, savings can help you to achieve your long-term financial goals, such as buying a house, starting a business, or retiring comfortably. When you set aside money regularly, you can accumulate a significant amount over time and use it to achieve your goals. With FairMoney’s FairLock account, you can now create multiple savings goals as per your requirement.
Why save money in apps rather than banks?
Putting money in online savings apps offers several advantages over traditional bank accounts. One of the main advantages is the ability to earn high interest rates with some going up to 18% which is higher than the average stock market interest rates.
Another advantage is, savings apps are generally more convenient and user-friendly than traditional savings accounts. Many savings apps allow you to set up automatic saving plans, track your spending, and access your savings easily through your smartphone.
Savings apps are more easily accessible than traditional banks. Many banks have strict eligibility criteria, such as minimum income requirements. Savings apps, on the other hand, are often available to anyone with a smartphone and a valid email address.
5 best savings apps in Nigeria
There are numerous savings apps available in Nigeria, but some of the best ones include:
FairMoney: FairMoney is a leading digital bank in Nigeria that can boast two great savings wallets. The first is FairSave. FairSave gives 10% interest P.A. allows you access your savings whenever you want without charging for withdrawals. It also gives daily interest alerts on your savings.
The second is FairLock. FairLock is a fixed deposit savings wallet that offers up to 18% interest rates P.A. which makes it a safe investment and one of the best interest rates on savings. As the name implies, FairLock involves locking your savings. Users pick a tenure to “lock” their funds and only get it when the tenure expires. This promotes savings discipline and helps you meet your savings goals.
Piggyvest: Piggyvest is a popular savings app in Nigeria that offers users a range of savings options, including flexible savings plans and target savings accounts. The app allows users to set up automatic savings and track their spending. This app offers interest rates of up to 13% on savings.
Cowrywise: Cowrywise is an online saving app with a range of savings options like short-term and long-term savings plans, as well as emergency savings accounts. This app offers interest rates of up to 12% on savings, allows users to set up automatic savings, and invest their money in mutual funds.
Alat by Wema Bank: Alat by Wema is a digital bank that offers a range of savings options. It has flexible savings and savings for specific goals. It also offers a high interest rate of up to 10% per annum and provides tools to help users manage their money and track their spending.
Kuda Bank: Kuda is a digital bank that offers a range of savings options, including fixed deposits and flexible savings. It also offers a high interest rate of up to 10% per annum and allows users to easily transfer money in and out of their accounts.
To sum up
Saving money is an important part of personal finance and can provide financial stability and independence. Savings apps offer higher interest rates & greater flexibility. It’s recommended to check the features offered by savings products in apps and savings in banks. This will help you understand better & make informed decisions for saving money
There are numerous savings apps available in Nigeria, each with its own unique features and interest rates. By carefully considering the options and choosing the right savings app, you can maximise your savings, and achieve your financial goals.
- Why should I save with the FairMoney app?
Our savings solutions offer some of the best interest rates available in Nigeria. Fairsave lets you withdraw as you like while giving you 10% interest P.A.
FairLock helps you uphold your savings discipline and helps you earn up to 18% interest P.A.
- How do I start saving in the FairMoney app?
Simply download the app here, click access savings and pick either FairSave or FairLock to continue.
- What is the eligibility criteria for creating a savings account in the FairMoney app?
There’s no criteria! If you can make money, you can save money.
- Are there any charges for opening FairSave or FairLock accounts?
It’s absolutely free! In fact, we pay you interest for saving. We also don’t charge you for withdrawal.