Sometimes, you feel a sudden fear when something you are enjoying is about to finish. You want to keep some of it for another time, but can you really keep it?
It is the same with your money. It is natural to want to enjoy the money you have, but you also know it is crucial to keep some of it for the rainy day, which will come without sending you an email.
Now, you don’t have to bury your money underground, keep it in a vest, or lock it up in a vault with multiple keys and an iris scanner. You can simply save your money online!
However, you must understand the virtual savings world and some of the innovations that advancements in internet technology have brought into the mix.
Here are five things you need to know about saving online.
- Know the FSP
You may have heard this acronym but did not bother to check what it means. FSP is an acronym for financial service provider, which refers to banks and other institutions or bodies offering financial services.
When the issue of saving online pops on your mind, the first question you need to answer is, ‘Which financial service provider has built trust and credibility over time?’ You definitely do not want to start your online investment journey without knowing the FSP and what they have to offer.
- Interest rates and lock periods
While there are many FSPs online offering competitive interest rates, you want to follow the ones whose interest rates and lock periods you are satisfied with. Interest rates range from 2 to 10% per annum and vary between different FSPs.
A lock period refers to the timeframe in which you have to keep your money with an FSP for you to qualify for and earn a specified interest. It serves to keep you disciplined as you cannot access the money until the lock period is over.
Many FSPs now use mobile apps in automating the process of online saving and investment. Mobile apps offer several advantages for people who want to save online, the best of them being ease and convenience for users. With mobile apps, you can open an account, save, check your balance, withdraw, send money, and do a whole lot more.
- Automated savings
This is a beautiful feature that you can activate on your FSP website or mobile app to automatically deduct a preset amount of money either daily or weekly, depending on what you are comfortable with.
- Target savings
So you want to pay your house rent in six months, but do not trust yourself to stick to a strict monthly or weekly savings routine towards achieving that goal in time? Let the target savings feature be your genie and make your wish come true! This feature is available on many online savings platforms, and it allows you to save towards a goal, with a specific interest rate, depending on how much you are saving.
With all these in mind, you should choose an online savings platform approved by the Central Bank of Nigeria, with a track record of excellence and amazing offers. This is why we exist: to help you commit to saving and offer you smarter ways to save and invest.