Did you know that over 70% of Nigerians now use digital platforms for financial transactions? In addition, “71% of Nigerians use digital banking services, and 61% use mobile money services”.
Saving money is an essential part of personal finance and can be the key to achieving financial stability and independence. Given their advantages, digital saving apps in Nigeria have become the better option for savings because they offer little to no charges and you can earn high interest rates when compared to conventional banks. Some of the advantages of digital savings apps are that they are more convenient and user-friendly than conventional savings accounts, they are more easily accessible, and they offer higher interest rates.
Saving money is important for several reasons. It helps you manage your expenses and avoid overspending, provides a safety net in case of emergencies, and helps you achieve your long-term financial goals, such as buying a house, starting a business, or retiring comfortably.
What are Digital Savings Apps?
Digital savings apps are online platforms that allow users to save money digitally, offering convenience and accessibility. These apps provide a digital alternative to traditional saving methods, allowing users to manage their finances from the comfort of their homes (or on the go!). With digital savings apps, you can easily open a savings account, deposit funds, and monitor your progress – all with just a few taps on your smartphone.
Advantages of Using Digital Savings Apps
So, what makes digital savings apps so appealing? The advantages of using digital saving apps are convenience and accessibility, higher interest rates, automated saving features, and enhanced security and transparency. Let’s look into the benefits:
- Convenience and Accessibility: Digital savings apps are available 24/7, allowing you to access your savings account whenever and wherever you want. No more queuing at the bank or worrying about branch hours! Imagine you’re a busy working professional who can’t make it to the bank during working hours. With a digital savings app, you can easily deposit your salary into your savings account from the comfort of your home.
- Higher Interest Rates: Digital savings apps often offer higher interest rates than traditional banks. This means your savings can grow faster and more efficiently. Suppose you have N100,000 in a conventional savings account earning 2% interest per annum. With a digital savings app offering 5% interest per annum, you could earn an additional N3,000 in interest over the same period!
- Automated Savings Features: Many digital savings apps offer automated savings features, such as regular deposits or transfers. This makes saving easier and less prone to being neglected. Let’s say you want to save N5,000 monthly for a specific goal. A digital savings app can automatically transfer this amount from your checking account to your savings account, ensuring you stay on track.
- Enhanced Security and Transparency: Digital savings apps prioritize security and transparency, ensuring your personal and financial information is protected. You can easily track your transactions and account activity, giving you peace of mind. With these apps, you can easily monitor your account activity and receive notifications for any suspicious transactions.
Top Digital Savings Apps in Nigeria
Each of these top digital savings apps in Nigeria to be explored offers unique features, benefits, and security measures to help you achieve your savings goals. By understanding what each app offers, you can make an informed decision about which one best suits your needs. Let’s discuss the details of each app:
1. Sycamore Target Contribution
Sycamore is a digital target contribution savings app launched in 2018 by a team of experienced fintech professionals. Their goal is to make saving easy, accessible, and rewarding for Nigerians. They give out loans besides helping you to save your money. The key Features and Benefits to look out for when using the target contribution savings product of the app:
- Flex Plan: The flex plan is the plan that allows you to set money aside at your own pace towards reaching your financial goal. You can decide to save this week and skip the next, It is up to you. It also allows you to set up regular deposits from your checking account to your savings account.
- Goals Plan: Here the money gets automatically deducted from your chosen account at the interval that you have set towards reaching your goal. This interval can be daily, weekly, or monthly. Create specific savings goals, like building an emergency fund or saving for a big purchase. Let’s say you want to save N500,000 for your wedding in 10 months. With Sycamore, you can set up an automated savings plan to transfer N50,000 monthly from your conventional bank account to your savings account.
- High-Interest Rates: Earn competitive interest rates of up to 24% on your savings.
- Cash backs: Sycamore gives cashback for spending your money from its app. Each time you use the app to pay bills like electricity, airtime, data etc. you get 3% off your payment.
- Withdrawal: As a customer, you don’t get penalized for not reaching your savings goal. For example, if you set a goal to save for 6 months for a goal and decide to withdraw it in 4 months, unlike other savings apps, you will not get penalized by way of charges. This is because the company understands that life happens and things may not always go as planned.
Security Measures:
- Encryption: Sycamore uses 256-bit encryption to protect your personal and financial information.
- Two-Factor Authentication: Add an extra layer of security with two-factor authentication.
- User Reviews and Ratings: Sycamore has an average rating of 4.5/5 stars on the Google Play Store, with users praising its user-friendly interface and automated savings features.
2. PiggyVest
PiggyVest is the first online “Savings & Investment” app in West Africa. They were first launched as “Piggybank NG” on the 7th of January 2016. Their mission is to help Nigerians save and invest for their future.
Key Features and Benefits of PiggyVest:
- High-Interest Rates: On PiggyVest you earn up to 20% on your savings on interest rate. You also earn up to 20% interest rate on your savings. Let’s say you want to save N100,000 for a down payment on a house. With PiggyVest, you can earn up to 20% interest per annum. .
- Expense Tracking: Monitor your expenses and stay on top of your finances.
- Goal-Setting: Create specific savings goals and receive reminders to help you stay on track.
Security Measures:
- Secure Servers: PiggyVest stores your data on secure servers.
- Firewalls: Their system is protected by robust firewalls to prevent unauthorized access
- User Reviews and Ratings: PiggyVest has an average rating of 4.8/5 stars on the Google Play Store.
3. CowryWise
CowryWise was founded by a former Investment Analyst at Vetiva Capital Management Razaq Ahmed and Edward Popoola in 2017 as a wealth management platform for young Africans It has currently been funded by 3 investors which include Kairos, Y Combinator, and Microtraction. It is a digital savings app launched in 2017 by a team of experienced fintech professionals. Their goal is to make saving and investing easy and accessible for Nigerians. It launched its mobile app for Android in 2018.
Key Features and Benefits:
- Automated Savings: Set up regular deposits from your checking account to your savings account. Let’s say you want to save N20,000 for a vacation in 3 months. With CowryWise, you can set up an automated savings plan and earn interest on your savings.
- Investment Options: Invest in low-risk assets like government bonds or treasury bills.
- Goal-Setting: Create specific savings goals and receive reminders to help you stay on track.
Security Measures:
- Encryption: CowryWise uses 256-bit encryption to protect your personal and financial information.
- Secure Data Storage: Their system is designed to ensure secure data storage and protection.
- User Reviews and Ratings: CowryWise has an average rating of 4.7/5 stars on the Google Play Store, with users praising its user-friendly interface and investment options.
Criteria for Evaluating Savings Apps
When choosing a digital savings app, it’s essential to consider several key criteria to ensure you find the best fit for your needs. By considering these criteria and evaluating each app based on your needs, you’ll find the perfect digital savings app to help you achieve your financial goals. Remember to always prioritize security and read user reviews to ensure a smooth and successful savings experience.
The criteria for evaluating the best digital saving apps in Nigeria are security features, ease of use, interest rate, flex pan, automated saving, goals plan, expense tracking, etc.
Security Features
Security is paramount when it comes to financial apps. Look for apps with:
- Encryption: For instance, apps like Sycamore use 256-bit encryption to protect your data from any kind of attack.
- Two-Factor Authentication: Sycamore and PiggyVest offer two-factor authentication for added security.
- Secure Servers: Sycamore and others store data on secure servers with 24/7 monitoring.
Ease of Use
A user-friendly interface and easy setup and navigation are crucial for a seamless experience. Consider:
- Intuitive Design: Sycamore and Cowrywise for instance have clean, intuitive designs, making it easy to navigate and find features.
- Quick Setup: Sycamore NG and PiggyVest offer a quick and easy setup process, getting you started in no time toward reaching your savings goal.
Interest Rates
Interest rates can significantly impact your savings growth. Compare rates among apps and consider:
- Competitive Rates: Sycamore and PiggyVest offer competitive interest rates, helping your savings grow faster with Sycamore offering 24% interest rates and PiggyVest 20%.
- Compound Interest: Cowrywise offers compound interest, allowing your savings to grow exponentially.
Additional Features
Automated savings, goal-setting features, expense tracking, and customer support can enhance your savings experience. Look for:
- Automated Savings: Sycamore and Cowryise offer automated savings features, making saving easier.
- Flex Plan: Sycamore offers a flexible saving plan, allowing you to save money at your own pace towards reaching your financial goal.
- Goal-Setting: All three apps all offer goal-setting features, helping you stay on track.
- Customer Support: All three apps offer customer support through various channels (email, phone, chat).
- Cashback: Sycamore NG gives you a 3% cashback each time you pay bills on the app.
User Reviews and Ratings
User feedback is essential in evaluating savings apps. Find reliable reviews on:
- Google Play Store: Check the ratings and reviews for Sycamore (4.5/5), PiggyVest (4.8/5), and Cowrywise (4.7/5).
- App Store/: Read reviews and check ratings for each app.
- Online Forums: Websites like Nairaland and Reddit have threads discussing digital savings apps, providing valuable insights.
Comparison Table
| S/N | APP | Key Features | Interest Rate | User Rating (Google Play Store) |
| 1 | Sycamore | Automated savings, goal setting, Flex Plan, Withdrawal, Cashbacks, encryption, two-factor authentication | High interest rate of 24% | 4.5/5 |
| 2 | PiggyVest | High interest rates, expense tracking, goal setting, secure servers | High interest rate of 20% | 4.8/5 |
| 3 | Cowrywise | Automated savings, investment options, compound interest, encryption | High-interest rate | 4.7/5 |
Digital savings apps in Nigeria have revolutionized the way we save and manage our finances. These apps are also convenient, allowing you to save and manage your finances on the go. Based on our analysis, Sycamore NG, PiggyVest, and Cowrywise are top contenders in the digital savings app market in Nigeria. Each app has its unique features and benefits, so it’s essential to explore and choose the one that best fits your needs.
