4 places to put your savings

gboyinwa ajomale

October 25, 2017 3:05 PM

Savings are always put in places where there are low risk or no risks at all.

The main reason we save is to keep our money safe but we also save to watch our money grow slowly.

Here are the best places to keep your money

1. Savings Accounts

All banks have different kinds of savings accounts. A savings account is the simplest place to keep your money. It has little or no interest on it. It is always restricted to just deposits and withdrawals of cash.

It requires little or no cash for opening a savings account.

2. High-Yield Bank Accounts

High-yield bank accounts is another kind of savings account, but different from the normal savings account. The high-yield bank account has a higher interest rate because it requires a larger initial deposit.

Access to this kind of account is limited.

3. Certificates of Deposit (CDs)

Banks always have a certificate of deposits available. It offers a higher interest rate most especially with larger and longer deposits. With a certificate of deposits, you have to keep your money for a specific period of time.

The maturity period of a certificate of deposits is 6 months, 1 year and 5 years.

ALSO READ: 7 types of bank account operated in Nigeria

4. Treasury Bills

The treasury bills are issued by the federal government through the central bank of Nigeria. They are short-term debt instruments issued to give short-term funding for the government. There is a guarantee from the Federal Government.

The Nigerian government treasury bill is one of the safest investments.

They are usually issued between 91 days, 182 days and 364 days at the primary market auction which is held every two weeks by the Central Bank of Nigeria.

The interest rate at the auction is not at a fixed rate but fluctuates based on demand and amount offered by the apex bank. However, there are other tenors available in the secondary market based on prevailing rates.

gboyinwa ajomale