One of the biggest sources of capital for investments is savings. One is said not to be a good manager if one does not save a part of his income for some purposes, especially future investments.
Our financial institutions encourage savings to a good extent by offering individuals a certain percentage of interest on their deposits in the bank. In this way, people can get a significant reward for saving their money over a long period, while those in need of capital can borrow these funds for investments.
Therefore, savings drives an economy and is a function of investments in an economy.
Even though it’s a good economic decision to save money, it becomes a bad decision if the currency is weak.
The Nigerian naira has continuously lost its value in the foreign exchange market amidst the rising inflation that has plagued the economy. This has caused people to rescind the urge to save in Naira and seek other strong currencies to save money.
Which better currency can one think of aside from the US dollar?
The US dollar is the most stable, valuable and used currency globally. Saving dollars in Nigeria is a sure way to beat the effect of inflation on the naira and retain the value of your money.
Everyone needs to learn how to save US dollars in Nigeria to always be on the safe side.
This article will highlight some ways you can easily save in dollars in Nigeria, especially now that the currency is showing weakness in the foreign exchange market.
How Can I Save In Dollars In Nigeria?
You should understand that the US dollar is not the official currency of Nigeria; hence, you can only save money as dollars, but you can never spend money as dollars in Nigeria.
Even though you may save in dollars, you’ll still need to convert to naira, using the official or black market rate, before you can spend in Nigeria.
There are mainly two legal ways to save money in dollars in Nigeria and they are either through the use of a domiciliary account or the use of a Fintech app.
1. Use Of Domiciliary Account:
A domiciliary account is a type of bank account that allows people to accept and deposit different varieties of foreign currencies, including US dollars.
A domiciliary account holder can save money as dollars in Nigeria and accept deposits of the same currency from foreign accounts.
This type of account is not common among Nigerians because it is difficult to open due to the rigorous process and stress involved.
Also, banks often ask for certain documents and referrals before they grant the request to open such an account.
2. Using a Fintech App:
Fintech has inarguably changed the dynamics of banking today, making life a lot easier and more convenient.
Some Fintech apps are designed as digital banking platforms that allow you to save money in various foreign currencies like the US dollar. Most of these apps give the users a certain percentage of an interest rate for
All you need to do is download the app, register and deposit your money and choose the currency you want to save in. It will be converted to the currency using the current exchange rate.
Top 5 Online Apps To Save Dollars In Nigeria
To avoid the stress of opening a domiciliary account in a bank, some legit online savings and investments platforms allow you to save money in dollars and earn a reasonable return on your investment.
We will discuss the top five savings app for saving in dollars.
1. Piggyvest:
Piggyvest is a popular and major online savings and investment app in Nigeria. Almost every Nigerian intentional about saving has the piggyvest app installed on their device.
The app allows users to earn up to 7% interest in their savings of dollars and 15% in naira.
It’s very simple to install and easy to use. Just download the app from the Apple Store or Google Play Store.
After you sign up on the app, fund your newly created naira account on the piggy flex and convert it to dollars.
2. Cowrywise:
Cowrywise shares many similarities with the Piggyvest platform, except that it does not have a fixed interest rate on savings. The interest rate offered on this platform fluctuates from time to time.
This app allows users to make financial plans, save, invest their savings in dollars, and manage them.
There’s also a provision for Halal savings for Muslims to save money without interest rates.
3. Bundle Africa:
Bundle Africa is not just an online app for saving money, and it’s also a crypto wallet that allows users to save in cryptocurrency and other stablecoins like BUSD.
Users can earn up to 6% interest rate on their savings yearly. The app is easy to use and has fast financing, which can be credited to its P2P money transfer system.
However, withdrawals before the payment date are not allowed.
4. Nexo:
Nexo is a popular crypto wallet and is one of the best apps for borrowing and saving money in dollar-backed cryptocurrencies. It is one of the best crypto lending platforms you can bank on.
The app allows users to earn money from interest on the listed cryptocurrencies and stablecoins. Users can save dollars in stablecoins and earn a compounding annual interest of 12%.
The platform computes the interest rates of investors daily and pays the user anytime he requests money or token withdrawal.
The app does not charge an extra fee for withdrawal, but users pay a small fee for opening a crypto savings account.
5. Binance:
Binance is the biggest cryptocurrency trading platform in the world. It is more than just a trading platform; it is used to save cryptocurrencies and stablecoins.
Users can make a choice of stablecoins to save them from the various coins on the platform.
Using the Binance P2P exchange, Nigerians can connect in selling and buying crypto coins and saving dollars in these coins.
Conclusion
Saving naira in dollars in Nigeria may be good to keep the money away from depreciation, but this is not entirely a good idea.
The naira fluctuates negatively most of the time, but it could also appreciate at any time. When the rate of the naira appreciates against the dollar, it means that the naira saved in your account will be less than it was before.
The above-mentioned online savings apps are good ways to save naira in dollars in Nigeria and earn interest.
