Saving money can be challenging due to the high cost of living. That is why you should consider a high-yield savings account.
A high-yield savings account is a type of savings account offered by banks or financial institutions that typically offers a higher interest rate than a traditional savings account.
The term, ‘high yield’, refers to the fact that the interest rate on these accounts are generally higher than the national average for savings accounts.
These accounts often require a higher minimum balance and may have restrictions on withdrawals, but they are a good option for people who want to earn a higher return on their savings while still having access to their money.
The interest earned on a high-yield savings account is typically compounded daily or monthly, which means that the interest is added to the account balance and begins to earn interest itself, resulting in faster growth of savings over time.
Top 10 high yield savings accounts in Nigeria
Saving is a long-term process, and it requires discipline and patience. A high-yield savings account in Nigeria can help you build a strong financial foundation for yourself and your family.
Below are 10 financial institutions that offer high interest-savings accounts.
1. Zenith Bank Individual Savings Account
The Zenith Individual Savings Account is recommended if you have a specific savings goal in mind or you just want to start setting money aside. With a zero-account opening balance, you can earn interest at 5.25%.
2. Polaris Wise
Polaris Wise is a 3-in-1 high yield savings account that combines the features of a savings, current and fixed deposit account. It encourages you to save more to earn more.
Minimum opening and operating balance of N10,000 and offers attractive interest rate, as high as 6% on your savings.
3. Fidelity Bank High Yield Savings Account
The Fidelity High Yield Savings Account offers you a great investment opportunity to make your money grow in the long term.
With a minimum Operating balance of N5,000, this account offers tiered interest rate based on threshold starting from 5.25% p.a and rising up to 6.95% p.a.
4. Sterling Bank – Sterling Recurring Deposit Account (SRDA)
Sterling Bank’s Sterling Recurring Deposit Account (SRDA) is an investment account designed for individuals that wants to save towards a specific financial target.
Its tenor ranges from six months to five years with interest rates of between 2% and 5% p.a.
Holders of this account can also access a credit card limit or personal loan of 80% of their investment value using the investment as cash collateral.
5. GT Target
GT Target is a high interest-bearing account from GTBank that encourages financial discipline through savings. The account is designed to help you save towards a specific target.
It offers 24/7 Banking services via the bank’s various e-channels and a 4.95% interest rate per annum and additional 1% bonus interest to customers who maintain standing order deposit for 1 year.
6. First Bank – FirstSavings Plus
The FirstSavings Plus is a hybrid savings account that allows you to enjoy the benefits of both savings and current accounts.
With this account, you can issue cheques and still earn interest on your saved funds.
7. UBA High Yield Savings Account
This account offers up to 5% p.a on balances above N500,000, and is available for individual customers only. It also comes with other benefits such as free online banking, debit cards, and access to ATMs.
8. ALAT by WEMA Bank
ALAT by WEMA Bank is a digital banking platform that offers a savings account with a high-interest rate of 10% per annum. The account requires no minimum balance, and customers can open and manage their accounts via the mobile app.
9. Carbon Savings Plan
Carbon Savings Plan is a high-yield savings account that helps you build wealth. It offers up to 15.5% returns on your investments. You can also lock away bulk sums for capital projects from as low as N50,000 and earn 15.5% at maturity.
10. V Bank
V Bank helps you grow any amount by investing in a Fixed Deposit. Its fixed deposit account has one of the highest yields in the market. It gives up to 14% interest which is one of the best offers around.
Opening a high yield savings account
Opening a high-yield savings account is a simple process. Here are the steps to follow:
Research and compare different high-yield savings accounts from various financial institutions to find the one that suits your needs.
Once you have chosen a high-yield savings account, visit the financial institution's website or visit their branch to get started.
Provide your personal information, including your full name, contact information, and valid identification documents such as a national identity card, driver's license, or passport.
Fill out the account opening form and provide the necessary documentation required by the financial institution, such as proof of address, passport photographs, and other requirements.
Deposit the minimum amount required to open the account.
Once the account is activated, you can start saving money, and the financial institution will pay you interest on your savings.
It's important to read and understand the terms and conditions of the high-yield savings account you are opening to ensure that you are aware of any fees, charges, or restrictions that may apply.
You can also contact the financial institution's customer service for assistance and information. Visit nairaCompare to compare interest rates on savings accounts and select the one that’s best for you!