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Interest Rate: Traditional Banks Vs PalmPay Flexible Savings

 

 

Before the fintech boom in Nigeria, low interest rates and dubious hidden charges were some of the reasons that stalled the financial inclusion drive.

Having operated for decades, by 2023, traditional banks barely managed to achieve one agency banking agent for every 80 Nigerians and one bank branch for every 27,000 Nigerians.

Of the 133.5 million active bank accounts, only 54.77 million are linked to a BVN. These figures pale in comparison to those of fintech companies.

PalmPay, for example, has over 30 million users and 1.1 million businesses including 600,000 merchants and 500,000 agents as part of its cashless payment ecosystem.

When fintechs like PalmPay popped up in Nigeria’s financial services sector, boasting seamless and secure transactions and offering better services, their high-yielding interest rates and no hidden charges were the immediate attraction for users.

Between 4.2% vs. 20%

Aside from the long-term allure of saving, one benefit of opening a savings account with a financial institution is the interest rate earned on your deposits.

However, traditional banks’ interest rates, only recently reviewed from 1.4 percent to a maximum of 4.2 percent, do not come close to PalmPay’s flexible savings plan.

The upward review does not scratch the surface compared to the up to 20 percent offered by PalmPay, making the fintech’s flexible savings more attractive by a mile.

Up to 20% APR Paid Daily

PalmPay doesn’t just offer the best interest rate in the financial sector for its flexible savings plan and other payment features; it does so with no hidden charges.

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While other banks offer nothing when you save your money, PalmPay pays up to a 20 percent annual percentage rate on your savings into your account daily, the highest daily payout savings plan in the market, higher than other fintechs.

Instead of low interest and dubious hidden charges, you can watch your PalmPay flexible savings grow daily, with the freedom to access your funds when needed.

PalmPay Flexible Savings

Also known as Cashbox, the PalmPay Flexible Savings is a financial product designed to empower users with a flexible and rewarding way to save money.

Interest is paid to your flexible savings accounts every morning. With no minimum amount to participate, you are empowered to tailor your savings strategies to align with your unique financial goals and timelines.

Aside from earning you daily interest payouts, your deposited funds remain accessible for withdrawal at any time and without penalty.

Interest is calculated on your Cashbox balance, with earnings applied to the principal amount and the accumulated interest from previous savings.

The savings feature empowers you, regardless of your income bracket, with access to high-yield returns, accelerating your journey to financial freedom by offering an effective way to build financial stability and grow your wealth.

A stand-out feature of the PalmPay flexible savings is its auto-save function that automatically transfers any deposited funds into your Cashbox, with the savings balance being able to be used directly to make transfers and bill payments.

The auto-save eliminates the need for manual funding and withdrawal, allowing you to streamline your savings journey and enjoy effortless wealth accumulation.

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