As your special financial advisor, I have some important information for you today. The CBN has recently issued a new directive and this one is concerning your deposits in bank accounts.
Let’s get into it.
So before, when you deposit money in your bank account, your bank was required to pay you a minimum interest rate of 3.9% on your savings. The new directive states that that amount be revised downwards to 1.25% per annum.
Honestly, when I saw the announcement, the first thing that came to my mind is that banks might as well not pay any interest again nau. Because if you’re getting only 1.25% interest annually on your money and the inflation rate is currently 12.82%, abeg… wetin you gain? 😭
Omo, this whole thing really made me think. As a Nigerian who’s dealing with increasing expenses every day, I really rely on my investments to come through for me. So if you’re like me, let’s look at some of the options available for us:
1. Stock Market: The Nigerian stock market is ever moving. If you’re not someone with the experience, understanding and time required to monitor the performance of your stocks, you may end up losing all or most of your money. 🤕
2. Government bonds: Unless you’re eating lunch with Dangote and Otedola, don’t even bother considering this one. You need a very high minimum investment amount to start, and that’s just unrealistic for everyday Nigerians abeg.
3. Money doubling (Ponzi) schemes: Please o, if someone tells you to drop ₦100k in exchange for ₦1m in 2 days, run o! 🏃
🏾♀️They will chop your money without thinking twice.
My Solution: I only have one word o, and it’s “Carbon”. I can keep my money in my wallet and earn monthly interest at 4% per annum (over double these bank rates), or create an investment plan and earn up to 15.5% interest. All from the app on my phone. 🤷🏾♀️
So which one is it going to be? Whatever method you choose, just make sure you’re earning interest above the current inflation rate. If not, you might as well keep your money under your pillow.
Anyway, in the wise words of Azeez Adeshina, otherwise known as “Naira Marley”… mafo, mo wa pelu e (translation: don’t be scared, I’ve got you).