Are you looking to save some money in Nigeria? You’re probably wondering if there is a better way to save than to keep your money in a regular savings account. With inflation at such high levels, this is a valid question, and in this article, we’ll share two of the best ways to protect your savings in Nigeria. If you’re new to savings and savings accounts, this article explaining savings accounts would be a great place to start.
The Pros and Cons of Traditional Savings Account
Savings accounts have become the primary means of saving for most people. This is usually either because of the stability offered by conventional banks or simply because they don’t know of other savings options. But is a conventional savings account with a traditional bank really a good way to save?
On the one hand, conventional banks offer some stability and security. Most banks typically will have a physical branch somewhere in your neighbourhood, making them easy to reach if things go wrong.
Bank deposits are also secured by the Nigerian Deposit Insurance Company, a regulatory body that helps to ensure that even if a bank runs into trouble, it is able to pay its depositors.
However, when you save with banks, you’ll typically earn very low interest rates. With the current high rate of inflation in Nigeria today, saving in conventional banks will typically mean that over time, your savings will lose some value since the inflation is growing faster than the interest on your savings.
The good news is that with the rise of modern fintech apps and online financial platforms, you can now save at much higher interest rates while
Choosing the Right Savings Methods
Other than regular savings accounts, there are a few more savings methods that you can try. These are the main ones:
1. Fixed Deposit Accounts
Fixed deposit accounts are typically offered by regular banks but they are different from savings accounts in a few ways. Firstly, they offer much higher rates than regular savings accounts. However, the catch is that you won’t typically be allowed to withdraw your funds until a specific date in the future.
So is a fixed deposit account a good way to save money? This depends on whether you have some extra cash that you’re sure you won’t need. You can keep this away in a fixed deposit account to enjoy high interest rates subsequently.
2. High-Interest Savings With Fintech Apps
Fintech apps like Bold offer much higher base interest rates than regular banks. With Bold, for example, you can save your funds with as much as a 15% interest. Bold also offers locked savings plans which are very similar to fixed deposit accounts, making it the perfect alternative to saving with a conventional bank.
3. Stable Crypto Coins
Cryptocurrencies have become major savings and investment vehicles for people looking to receive more value for their money. There are a few different reasons for the popularity of cryptocurrencies like Bitcoin, Ethereum, USDT ( Tether) BNB, and so on–all of which are tradeable on major crypto exchanges.
Cryptocurrencies like Bitcoin tend to appreciate massively over time, while, coins like Ethereum and Tether tend to be a stable store of value. This means that if you want an alternative to saving in naira, you may consider converting your naira into Bitcoin or USDT, for example, using a trusted peer-to-peer crypto marketplace like Oyola.
Getting Started
Are you ready to get the best deal on your savings? We’ve discussed a few different options that might work well for you. We’d strongly recommend using a hybrid savings approach for the best returns.
You can keep some funds in a high-interest Bold savings account, and devote the rest to saving in crypt assets on Oyola. To get started, you can download Bold and Oyola from Google Play Store or IOS Store.
