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The 6 best alternatives to savings accounts in Nigeria

Savings account, Fixed savings, Investment, Fixed Savings, Interest rate, Income, renmoney


When it comes to growing money, many Nigerians rely on their traditional savings accounts. But while these savings accounts are mostly safe for your money, they often provide very low-interest rates, typically around 3% – 5% on your money. And guess what happens when you withdraw? You forfeit almost all of it 😬. 

So if you’re wondering how to grow your money outside of your Bank’s regular savings accounts, here are different ways to invest and grow your money safely and efficiently.

Fixed Savings for higher & stable returns:

Popularly known as Fixed Deposits, Money market funds, and Fixed savings; these are investments deposited with financial institutions like Renmoney, at a fixed rate of return and for a specific period of time.

These investments are low-risk and have provided higher, and safer returns to protect you from inflation. In fact, our Fixed Savings account offers as high as 18% p.a. and you can start with as low as ₦‎1,000. It’s also insured by the NDIC (Nigerian Deposit Insurance Commission).

You should consider this investment if you’re into gaining higher interest while protecting your capital, and for more information on Fixed income instruments, just click the link here

High-risk returns on Stocks:

Investing in stocks, or shares of ownership in companies, can offer the potential for high returns over the long term.

Historically, stocks have outperformed other investment options, although they also come with higher risks. Diversifying your investments across different stocks can help spread risks but this may also reduce your potential rate of returns.
This is why it’s crucial to research and understand individual stocks before investing and maybe consider some professional advice too 😉

Investing in Bonds:

Bonds are another investment option that can offer regular interest payments and potential capital appreciation.

Bonds are essentially loans made to governments or corporations, and they can provide great stability to an investment portfolio, even at a lower interest rate.

While Money market instruments last for a year, bonds are characterised by their longer terms. They can go from 3 – 20 years and can be traded on the secondary market after the governments or institutions issue them.

You should know that it’s much, more expensive to invest in Bonds than money market instruments though, and you should be aware of the safety rating of the bond you’re considering before investing – as each Bond is given a safety rating before its listing.

Investing in Real Estate:

If you can afford it, investing in real estate is one of the most powerful investments available for growing wealth. From rental income to property appreciation and diversification; there are a number of potential benefits of these investments.

You can invest in rental properties, real estate investment trusts (REITs), or crowdfunding platforms, depending on your risk appetite and investment objectives. However, it’s important to carefully research the real estate market, associated costs, and potential risks before investing.

Gold as a diversification option:

Including gold in your investment portfolio can act as a hedge against inflation and currency fluctuations. Gold is considered a safe haven asset that has historically preserved wealth during economic uncertainties. You can invest in physical gold, gold-backed securities, or gold exchange-traded funds (ETFs) for diversification. Because of the lower returns of Gold over the short and medium term, you might not want to consider it your main asset for growing money, but as a key part of your portfolio that protects you from macroeconomic conditions. 

Utilising loans for strategic investments:

Loans can also be used strategically to fund investments that are expected to generate higher returns, such as fixed savings, real estate or business opportunities.

It’s also super easy to get one too, as we offer personal and business loans for you in an easy, reliable and instant way. Consider using a loan for strategic investments with clear repayment plans. However, careful planning, analysis, and risk management are all required to avoid overleveraging yourself and exposing yourself to great financial risk

In conclusion

While your big bank’s savings accounts might look like the sensible way to save, they usually don’t offer decent returns (Unless you’re getting 10% on a regular savings account with us 💅🏽)

And so to maximise your returns, it’s important to consider alternative investment options that suit your appetite for risk, financial goals, and market conditions. 

If you want to get high interest, and also enjoy a stable, and secure investment, you can invest in our Fixed Savings account, insured by the NDIC from as little as ₦‎1,000 and enjoy returns of 18% p.a when you invest today. To start actually growing your money, just click here.

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