How to Start a Digital Savings Plan in Nigeria: A Comprehensive Guide

In today’s fast-paced world, saving money can be challenging. The traditional methods of saving in a bank account or under a mattress may not be as effective as they once were. Fortunately, the rise of digital savings platforms in Nigeria is changing the game, offering an easy, accessible, and effective way to save.

If you’re looking for a simple way to grow your money, a digital savings plan could be exactly what you need.

Digital savings platforms like PiggyVest and Cowrywise have made it easier than ever for Nigerians to start saving without the hassle of visiting a bank. These platforms offer features that not only make saving more convenient but also provide higher interest rates compared to traditional banks.

In this blog post, we’ll guide you through how to start a digital savings plan in Nigeria, review the most popular platforms like PiggyVest and Cowrywise, and provide tips on how to effectively save money using these tools.

What is a Digital Savings Plan?

A digital savings plan is an online platform or app that allows individuals to save money over time, either for specific goals or as general savings. These platforms provide users with the tools to set up savings accounts, track progress, and earn interest, all from the comfort of their mobile devices or computers.

Unlike traditional savings methods that require physical visits to the bank, digital savings platforms are accessible, flexible, and convenient. They offer features such as automated savings, goal tracking, and the ability to withdraw money when needed, all while ensuring your funds are earning interest.

Benefits of Digital Savings Plans in Nigeria

Before we delve into how to start a digital savings plan, let’s take a quick look at the benefits of using these platforms in Nigeria:

• Convenience: Digital savings platforms can be accessed via mobile apps or websites, making them easily accessible from anywhere.
• Higher Interest Rates: Compared to traditional bank savings accounts, many digital savings platforms offer competitive interest rates, meaning your money grows faster.
• Automatic Savings: Many platforms allow you to set up automatic savings, so you can save without even thinking about it.
• Goal-Oriented Saving: You can create specific savings goals for things like buying a car, going on vacation, or starting a business.
• Security: Your money is kept safe with these platforms, which are usually regulated and insured by Nigerian authorities.
• No Minimum Deposit Requirements: Most platforms allow you to start saving with as little as ₦100 or ₦500, making it accessible for people with various income levels.

Now that we’ve covered the benefits, let’s take a closer look at some of the most popular platforms for starting a digital savings plan in Nigeria.

1. PiggyVest: A Leading Digital Savings Platform

PiggyVest is one of the most popular digital savings platforms in Nigeria, offering an easy and secure way to save money. It allows users to save for specific goals, set automatic savings, and even earn interest on their savings.

Key Features of PiggyVest:

• Automatic Savings: PiggyVest offers an automated savings feature called “Piggybank” that allows you to save a specific amount daily, weekly, or monthly. You can even set up recurring transfers from your bank account to PiggyVest to automate the process.
• Goal-Based Saving: You can create individual savings goals on PiggyVest, whether you want to save for a wedding, emergency fund, or vacation. The platform helps you track progress towards these goals.
• Interest on Savings: PiggyVest offers competitive interest rates on your savings, often higher than traditional bank accounts. The interest is calculated daily and paid out monthly, which helps your savings grow faster.
• Lockup Period: For those who want to save with discipline, PiggyVest offers the option to lock up your funds for a set period of time (e.g., 30, 60, or 90 days) to prevent impulsive withdrawals.
• Investments: Beyond saving, PiggyVest also offers an investment feature that allows you to invest in low-risk, high-return options like treasury bills, providing another avenue for growing your money.

How to Start Saving with PiggyVest:

1. Download the App: Start by downloading the PiggyVest app from the Google Play Store or Apple App Store, or sign up on their website.
2. Create an Account: Once you’ve downloaded the app, sign up with your email address, create a secure password, and verify your identity.
3. Set Up Your Savings Plan: You can either choose to save automatically, set goals, or manually add funds whenever you wish. PiggyVest also allows you to link your bank account for easy transfers.
4. Start Saving: Once your account is set up, start saving towards your goals or use the automatic savings feature to make regular contributions.
5. Monitor Your Progress: Track your savings and investment progress through the app’s dashboard, which gives you real-time updates on how much you’ve saved.

2. Cowrywise: A Simple, Efficient Savings Solution

Another top contender in Nigeria’s digital savings space is Cowrywise. It offers users a straightforward way to save money with high interest rates and the flexibility to withdraw funds when needed.

Key Features of Cowrywise:

• Automated Savings: Cowrywise lets you set up automated savings plans, which allows you to save specific amounts regularly, whether daily, weekly, or monthly. You can link your bank account to Cowrywise for easy automatic deductions.
• Interest-Earning Accounts: Like PiggyVest, Cowrywise offers competitive
  • interest rates on your savings. The platform also offers higher interest rates for longer lock-up periods, making it a good option for those who want to save for the long term.
  • Goal-Based Savings: Cowrywise enables you to set individual savings goals. You can create different categories for different goals, such as buying a house, education, or travel.
  • Investments: Cowrywise also offers investment opportunities, including investments in mutual funds, which provide higher returns than traditional savings accounts.
  • Security: Cowrywise is regulated by the Central Bank of Nigeria (CBN), ensuring that your funds are secure.

  How to Start Saving with Cowrywise:

  1. Download the App: Install the Cowrywise app on your smartphone or visit their website to create an account.
  2. Sign Up: Register with your email address and phone number, verify your identity, and set a secure password.
  3. Set Your Savings Plan: Choose from the various savings options, including goal-based savings, automated savings, or lump-sum deposits. Link your bank account for automatic deductions if desired.
  4. Start Saving: Begin saving towards your goals or invest in Cowrywise’s mutual funds for higher returns.
  5. Track Your Progress: Monitor your savings goals and performance through the app’s dashboard. The platform will give you updates and alerts when your target savings are met.

  3. How to Effectively Save with Digital Savings Platforms in Nigeria

  Now that you know about PiggyVest and Cowrywise, let’s discuss some practical tips on how to maximize your savings using these platforms.

  3.1 Set Clear Savings Goals

  One of the first steps in successful saving is setting clear, realistic goals. Whether you want to save for a rainy day, buy a new phone, or plan a vacation, having specific goals will motivate you to stay on track. Both PiggyVest and Cowrywise allow you to create different goals and set milestones, so you can see exactly how much progress you’ve made.

  3.2 Automate Your Savings

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  One of the best ways to build a habit of saving is to automate your contributions. Both PiggyVest and Cowrywise allow you to set up automatic transfers from your bank account. This means you’ll be saving without even thinking about it, making it easier to accumulate wealth over time.

  3.3 Be Consistent

  Consistency is key when it comes to saving money. Whether you’re contributing a little amount every day or a larger sum every week, the most important thing is to stay consistent. Over time, your small contributions will add up to a significant amount, and with the interest earned on your savings, you’ll see your money grow.

  3.4 Take Advantage of Interest Rates

  Both platforms offer attractive interest rates compared to traditional savings accounts. Make sure to choose a savings plan that maximizes the interest earned on your funds. If you can afford to lock up your savings for a longer period, you can earn even higher interest rates, making your money work for you.

  3.5 Track Your Progress

  Use the tracking features on these platforms to monitor your savings progress. Set reminders for yourself to check in regularly, and make adjustments to your savings plan as necessary.

  Conclusion: Start Saving Today

  In conclusion, starting a digital savings plan in Nigeria is one of the easiest and most efficient ways to grow your wealth. Platforms like PiggyVest and Cowrywise offer a wide range of features that make saving simple, secure, and rewarding. By setting clear goals, automating your savings, and taking advantage of higher interest rates, you can ensure that your financial future is brighter.

  So, what are you waiting for? Download the PiggyVest or Cowrywise app today, start saving, and watch your money grow!