Muyideen, a medical student at Olabisi Onabanjo University, Ogun State, saves at least 20% of his monthly allowance. As the youngest child, he gets extra money from his elder siblings and extended family members, leaving him with excess cash each month.
“Sometimes, I buy shares or simply save the money,” he said.
Buying shares can be exciting—one can make a profit from stock prices soaring and dividend payments, but it comes with risks such as share price volatility and unpredictable market movements. “When an exciting company is trading, and I am willing to take risks to invest, but other than that, I save mostly,” he said.
Saving is one of the oldest and popular financial instruments. Saving simply means putting some money aside. Such money is, therefore, safe and available, but its purchasing power value may fall depending on inflation.
When Muyideen doesn’t buy shares or crypto, he prefers using a high-interest savings account rather than the traditional commercial savings account. “They mostly add interest on the money you save upfront, and you don’t have to pay a broker before withdrawing your funds,” he said.
Nigerians struggle to save money, primarily due to economic instability marked by high inflation and a rising cost of living that has eroded consumer spending power. “Sometimes, I actively have to calculate and moderate my spending, otherwise, I will not have extra cash to save,” Muyideen said.
Small and Medium-sized Enterprises (SMEs) are a critical part of Nigeria’s economy, contributing 48% to the national GDP and accounting for 84% of employment. However, many of these SMEs experience seasonal fluctuations, with peak periods of high demand followed by slower periods. Implementing effective savings strategies during these peak times can provide a financial buffer to navigate the challenges of off-peak seasons.
Aminat Quadri, a provision store owner in Lagos, only considers saving after she has settled all her bills. “I wish I understood how to invest, I heard the returns are higher, but I save,” she said. “It has become a lot harder; sometimes, I have to go into my savings to augment the price of goods in the market.”
Aminat Quadri’s dilemma is the reality of many Nigerians. Nigeria’s household spending has been on a steady decline, painting a concerning picture of economic hardship. According to GDP reports from 2023 to mid-2024, household consumption has consistently dwindled, reflecting the growing strain on personal finances, leaving next to nothing to save.
While savings help reduce the need for loans and cushion the impact of price increases on essentials like food, rent, and transportation, it barely outpaces inflation.
“If the naira drops in value, your savings take a big hit,” Tamilore Ogunyemi, an Investment Banker at Capital Fields, said. The reality is, your money may not grow fast enough with just saving, but it’s great if you can’t take risks and for emergencies.”
Per the Financial Regulations Courses, High-Interest Savings Accounts (HISAs) offer a safe, stable, and reliable way to grow your money over time, providing a low-risk alternative to investments and stocks.
With interest rates 10 to 12 times higher than traditional savings accounts, according to Investopedia, high-interest savings provide stability and flexibility to help individuals grow their savings over time with minimal risk.
This makes them an attractive option for freelancers with irregular income who can save excess funds during busy periods and earn interest to supplement their income during slow periods. Workers with fixed incomes can save for specific goals, such as buying a car or paying for a wedding, while earning a higher interest rate.
“Traditional savings accounts in Nigeria do not offer up to 12% annual interest, an high interest savings account will be about 18%, this gives you an attractive balance of high returns and low risk, but the interest you get barely keeps up with inflation I will always say keep your money one of the reliable ones if you cannot take any risk,” said Oyesanya Temiloluwa, a financial analyst.
Introduction of FairMoney Savings `
Recognising this, FairMoney, a digital banking platform, offers high-yield savings accounts with interest rates between 17%-30% per annum (P.A.), providing stability similar to treasury bills but with higher returns.
Whether a customer wants daily interest payouts with easy access to funds, a structured goal-based savings plan, or a high-yield locked savings option, FairMoney ensures that every user can find a solution that helps grow their wealth.
“I always thought FairMoney was just a loan app. My friend put me on FairMoney last year, and I locked some money. That 30% interest rate on savings is the highest I have seen among fintech apps, it was hard to believe at first,” Oreoluwa Bamidele, a FairMoney user, said.
For instance, a saver who prefers flexibility, where they can deposit and withdraw anytime without penalties, can opt for FairSave, which offers 17% P.A., with interest paid daily.
Customers looking for goal-oriented savings to save for specific goals like rent, a new phone, school fees, or vacations with structured savings plans can choose FairTarget, which provides 20% P.A. but requires meeting a savings target.
For users willing to commit funds for a fixed period, FairLock offers returns ranging from 17% to 28% P.A., and even up to 30% P.A. for new customers on select tenures.
For Muyideen, FairLock helps build discipline with a huge reward for it. “You know Medical school doesn’t follow the regular pattern, so when I got a scholarship for a session I had already paid for, I saved it in my FairLock account, and I got free money, that is what I call it,” he said.
How FairMoney works
Consider an initial deposit of ₦5 million
At 17% per annum, earning in one year would be ₦5,000,000 + ₦850,000= 5,850,000
At 26% per annum, earning in one year would be ₦5,000,000 + ₦1,300,000= 6,300,000
At 28% per annum, earning in one year would be ₦5,000,000 + ₦1,400,000= 6,400,000
Difference between FairMoney and other brands
FairMoney’s FairLock plan offers the highest potential returns, with interest rates reaching up to 28% PA and 30% for new customers. In contrast, PiggyVest’s SafeLock offers up to 22%, and Cowrywise provides up to 21.2% per annum. FairMoney also integrates banking services with its app, offering a seamless experience for users managing both savings and loans.
FairMoney’s FairSave allows for easy withdrawals, catering to users who might need quick access to their funds. Cowrywise’s regular savings plans are designed to promote discipline, with a minimum lock-in period of three months, during which funds cannot be withdrawn. High-yield savings accounts in Nigeria, such as FairMoney’s offering up 17%- 30% annual interest, provide an attractive balance of high returns and low risk. In contrast, fixed deposits typically offer 5-10% returns, while money market mutual funds average around 20.58%. Real estate investments can yield variable returns through rental income and property appreciation but come with higher risks and lower liquidity.
Omolara, a dressmaker based in Isolo, prefers FairMoney for its user-friendly interface. “I have used other apps, and they can leave you confused or have too many buttons to press at the same time,” she said.
How Fair Lock works
Investing ₦5,000,000 in FairMoney’s FairLock fixed deposit account can yield the following returns based on the specified tenures and interest rates:
- 30 days at 19.5% P.A.: ₦5,080,136.99
- 60 days at 21% P.A.: ₦5,172,602.74
- 90 days at 23% P.A.: ₦5,283,561.64
- 1 year at 26% P.A.: ₦6,300,000.00
- 2 years at 28% P.A.: ₦7,800,000.00
FairLock offers the highest returns with the interest paid upfront, however, it cannot be withdrawn until the tenure ends, as it cannot be broken.
FairMoney was launched in 2017 as a lending platform. In 2021, the company diversified and obtained a microfinance bank license from the Central Bank of Nigeria (CBN), ensuring compliance with regulatory requirements and deposit insurance from the National Insurance Commission (NIC).
This expansion led to the introduction of new savings products, including FairSave in April 2021, FairLock in October 2022, and FairTarget.
Since launching FairLock, FairMoney has managed over N35 billion in savings deposits and distributed over N3 billion in interest to users. With a track record and commitment to responsible fund management, FairMoney has established itself as a trustworthy fintech company, offering competitive savings options with returns of up to 30% upfront interest payouts.
Getting started with FairMoney is simple. First, download the FairMoney App, once installed, fund your FairMoney account by navigating to your profile, selecting “Bank account details,” and using the provided account number to make a transfer.
Next, toggle to the Savings section to choose the plan (FairSave, FairTarget or FairLock) that best suits your financial goals.
By combining accessibility, structure, and high returns, FairMoney ensures that no matter an individual’s financial approach, they can find a savings plan that not only preserves their money but helps grow at rates that outperform many traditional investment options in Nigeria today.
