4 Short-Term Investment Apps That Offer Higher Interest Rates Than Your Bank

Best Investment Apps in Nigeria – Earn Higher Interest Rates Returns Than Your Bank Fixed Deposit Accounts – Best Short-Term Investment Opportunities for Salary Earners.

I have some cash I will like to save and hold for 6-12 months but don’t want to keep it in my savings account, what are the risk-free options I can explore to earn a high-interest return above my conventional savings account rate of 2-3%? 

If you have asked a similar question, and are still looking for the best answer, this is for you, pay attention to the information shared, this might be one of your best short term investment guides this year.

We already know that the interest on a savings account is low to the extent that they can’t keep pace with inflation (now at 11.3% as of this update), so your money loses value over time.

For some of us that don’t know how money loses value every year, Let me share a practical example of how a typical N100,000 was worth more 3-5 years ago than it is right now.

We will compare savings returns when the average inflation rate as of 2013 was 8.5% and the latest 2019 figure of 11.3%.

Assuming you kept N100,000 in the bank in a savings account which earned 3% per annum in 2013. The real value of your money isn’t N103,000 at the end of the year but N94,000 (1+3%/1+8.5%). In Finance, we call this inflation-adjusted return.

Fast forward to 2019, the same N100,000 in a savings account that offers the same return of 3% after adjusting for a high inflation rate at 11.3% will be worth N92,000 (1+3%/1.11.3%).

You see how Inflation eats away the value of every stream of cash flow, including salaries, and pension. Although, you will get the same nominal value of N100,000 or N103,000 (interest included) the value of what you can buy with it has reduced from N94,000 to N92,000, down by 2% and that is how your cash savings lose an average of 2% of its value year on year.

Let us now assume that you kept the money in a high-yield interest account that earns 15% per annum. The real worth of your N100,000 at the end of the year after adjusting for inflation would be N103,000 ((1+15%/1+11/3%) x N100,000) which is a positive return.

This approach to calculating your real investment return, unlike the usual method of multiplying your returns by the capital invested, considers the effect of inflation so you can pick which investment or opportunities offer a positive return. After all, a bag of rice, which was worth N3,000 some years back, isn’t the same amount today (now selling for N16,000, up by 433%) and will be worth more tomorrow.

The scenarios shared here isn’t an academic exercise but practical examples of how people slip into poverty; move from higher income class to lower income as the prices of goods go up year on year. At least, we can attest to the fact that the standard of living obtainable from N100,000 salary a few years back isn’t obtainable again as prices of essentials like Fuel, Transport, etc commodities have skyrocketed by 100% or more.

Investing your money is one of the good ways to grow it and maintain your standard of living. With the emergence of FinTech, a term used to describe the adoption of mobile technology in savings, investing and payments, you no longer have to worry about comparing interest returns of various banks, and financial institutions.

Here are four of the best investment apps in Nigeria that will help you invest your money for the short term and earn returns above inflation rates.

• PiggyBank

• Platforms: Android, iOS
• The interest rate on SafeLock: 12.44 % per annum
• Duration: 30, 60, 90, 180 and 365 days
• Issues debit card: No
• Withdrawal charges: 5% fee but with 4 free-of-charge withdrawals annually
• Minimum withdrawal: ₦3,000
• User Verification: No necessary.

PiggyVest, formerly PiggyBank. is one of the first mobile apps that pioneered automated savings in Nigeria. The app allows registered users to set a savings target with the frequency of savings; daily, weekly or monthly. With PCDI security standard, you can also add your payment card to the platform which means that, based on a predetermined frequency, an amount will be deducted from your account until you reach your target.

But here is the catch on PiggyVest, they have a fixed deposit product called SafeLock, one that locks your savings for a particular period with interest pro-rated at 12.44 per annum. This means that a fixed deposit for 365 days earns you 12.44%.

Withdrawals from your account are instant as funds are automatically credited to the bank account provided during registrations.

• I-Invest App

• Platforms: Android, iOS
• The interest rate on SafeLock: 8-20% per annum depending on country risk.
• Duration: 30, 60, 90, 180 and 365 days
• Issues debit card: No
• Withdrawal charges: No Charge
• Minimum withdrawal: ₦3,000
• User Verification: BVN, Phone Number, Utility Bill and Means of Identification (Drivers licence, or National identity card or Voters card or International passport)

I-Invest App powered by Sterlings Bank is the first mobile app designed to enhance and promote CBN Treasury bill investment.

Unlike the usual method of buying T-Bills where you visit your bank, fill a form and wait for the next auction, I-Invest saves time, provide a convenient platform for you to invest in treasury bill, monitor the growth of your portfolio in real time and liquidate your investment any time into cash.

As of this time I reviewed the app, it has received over 50,000 downloads on Play Store and processed transactions worth N2b which validates the app’s proposition as a one-stop platform for treasury bill investment.

• PayDay Investors

• Platforms: Android, iOS
• The interest rate on SafeLock: 13.5 – 20 % p.a depending on money market rates.
• Duration: 30, 60, 90, 180 and 365 days
• Issues debit card: No
• Withdrawal charges: NEFT transfer fee of N52.50
• Minimum withdrawal: ₦10,000
• User Verification: BVN, Phone Number, Utility Bill and Means of Identification (Drivers licence, or National identity card or Voters card or International passport)

PayDay Investors app is the first mutual fund investment platform on mobile designed by ARM Securities Mutual Fund, a leading investment firm. You put the money you are not using aside and invest in mutual funds. These funds are spread across various short term risk-free instruments like Treasury Bills, Commercial Papers, etc.

It is powered by the ARM Money Market Fund- a mutual fund that guarantees you quarterly returns.
I like the fact that it is tied to money market mutual funds, one of the most consistent high returns short term opportunities anyone can explore.

• PayVest App

• Mobile Download Platforms: Android
• The interest rate on SafeLock: 15.5 % p.a
• Duration: 30, 60, 90, 180 and 365 days
• Issues debit card: No
• Withdrawal charges: None
• Minimum withdrawal: None
• User Verification: BVN, Phone Number, Utility Bill and Means of Identification (Drivers licence, or National identity card or Voters card or International passport)

PayVest is a fixed deposit account product offered by PayLater, a leading mobile lending platform in Nigeria. The interest on this app ( up to 15.5%) seems to be the highest interest on the fixed deposit you will find available, anywhere. The only investment that matched this is the CBN Treasury bill offered by I-Invest.

Besides, the rate on the app is far above the inflation figure, thus ensuring you are only getting a positive return. A single deposit can range from ₦50,000 to ₦10 million.

Disclaimer: The rates listed areas currently offered by these best investment apps in Nigeria and may be subject to change. You are strongly advised to do your research and get the latest rates before investing your money.