When it comes to your finances, your savings account is an incredibly valuable asset. It’s a secure place to park your excess money and watch it grow. Unfortunately, some Nigerians are not taking full advantage of the wealth that can be unlocked within the walls of a savings account.
At its simplest, having a savings account allows you to save money while earning interest at the same time. It is the first step in your journey. Depending on the type of savings account you have and your willingness to take advantage of certain benefits, there are numerous ways to maximise the value of your savings account in Nigeria.
Understanding Financial Institutions in Nigeria
Over the years, commercial banks used to be the saviour with a lot of services and products that aim to help individuals and businesses grow their wealth, a breath away from traditional banking. Yeah, it came with a lot of promises and potential.
A while back, the banking system offered promising services and features, but with the meagre amount of interest and excessive fees; over time, several customers lost interest quickly. Recently, savings accounts in Nigeria are managed by a variety of financial institutions, including commercial banks, microfinance banks, and private companies. This has caused a rise in the migration of customers from these physical banks to other financial institutions such as Havvest, Piggyvest and Cowrywise among others that offer better services.
One of the key advantages of modern digital platforms is the ability to leverage technology to offer higher returns and more personalised services than traditional financial institutions, without collecting maintenance or transaction fees.
In addition, the Central Bank of Nigeria controls the nation’s financial sector and establishes rules and regulations to guarantee the safety of these financial institutions. Caught ya! For a moment you were worried. Your money’s in safe hands.
Harnessing the Blessings of Saving with Interest
These modern financial institutions allow individuals to save money while still offering investment opportunities to enable them to earn more and build financial stability.
The best way to harness the blessings of saving is starting early and understanding that saving is just your first step in your financial journey. However, the saving platform that will be used is also a very important factor as it determines how big your interest rate is. You can harness these blessings by taking advantage of the multiple savings options available. These can include high-interest deposit accounts that offer higher returns on your deposits.
Other ways to achieve this include:
- Start by setting a savings goal: Determine how much you want to save and how long it will take to reach your goal. Then, make a plan to save that amount each month. Also, revise your plans with the accumulated fund while updating your goals.
- Find a high-yield savings account: Look for a savings platform that pays a high-interest rate. This will allow your money to grow faster than if you kept it in a regular savings account.
- Use automatic savings: Set up automatic transfers from your checking account to your savings account each month. This will help you save consistently and avoid the temptation to spend the money.
- Be patient: Saving with interest takes time, but the longer you save, the more you’ll benefit from compounding interest. Stick to your plan and stay committed to your savings goals.
Overall, harnessing the blessings of saving with interest requires discipline, patience, and a long-term perspective.
Briefly put, Financial institutions in Nigeria are beginning to recognise the growing potential of the online clientele and their need for financial services. This has become a common practice for many clients of financial institutions. With the help of these financial institutions, clients can now easily access their accounts from the comfort of their homes or offices. Making it possible to track the growth of your funds with time.
At Havvest, we are dedicated to providing the best platform to save your money while accruing interest over time whilst having the option of investing your capital at different points.
