Considering that the main problem facing savings in Africa is inflation, there has been an inclination among many individuals to avoid saving their money in conventional savings accounts in the banks, but rather opt for neo-banks and digital savings, which provide higher interest payments than traditional savings accounts.
Highest Yield Savings Platforms Africa, Conventional savings accounts usually pay interest of about 2% to 4% annually, but neo-banks have come into play and changed the face of savings accounts by providing higher interest returns from investments through investment in different money market securities, government securities, and financial instruments.
In this article, we will cover the comparison between savings accounts provided by conventional banks and neo-banks, and also highlight the top neo-banks that offer high-interest rates.
Neo-Banks vs Conventional Bank Accounts
Digital finance services have revolutionized the savings market by lowering cost structures and providing better rates for the customer.
| Feature | Digital Neo-Banks and FinTech | Conventional Banks |
| Return on Savings | Between 11% – 22% per annum | 2% – 4% per annum |
| Fee | No or low account maintenance fees | May contain account fees, withdrawal fees, and SMS fees |
| Access | Mobile-only access | Branch-based |
| Opening an Account | Minutes through a mobile phone application | May take time as visits to branches are required |
| Mobility | Locked up for higher interest rates | More easily able to apply for a loan |
When returns matter, fintech apps have become the go-to choice.
1. PiggyVest (Nigeria)
PiggyVest continues to be one of the continent’s most sought-after platforms for savings and wealth creation.
Potential Earnings
18.5% per annum from savings products
How It Works
Through the use of functionalities like SafeLock, Target Savings, and investment portfolios, users can automate their savings habits. Longer lock-ins on savings generate higher returns on investments.
Best For
People are searching for structured savings plans and wealth creation.
2. Busha (Nigeria / Pan-African)
From a cryptocurrency-only platform, Busha is now a comprehensive ecosystem for all things digital financial.
Potential Earnings
20% yearly income from approved savings products
How It Works
Busha merges savings, financial management, and digital assets into a comprehensive platform that earns competitive rates of return on certain products.
Best For
Tech-savvy people seeking comprehensive digital financial solutions.
3. TymeBank (South Africa)
Being a mobile-first bank, TymeBank has quickly risen to become one of the biggest digital banks in Africa.
Potential Earnings
11% per annum from GoalSave accounts
How It Works
Goal setting allows people to save funds at increasingly high-interest rates as they lock money away.
Best For
South Africans are seeking a regulated digital bank.
4. Cashlet (Kenya)
Cashlet has become popular in East Africa as it helps people to save using mobile-oriented financial instruments.
Returns
11%-16% annually
How It Works
It is a platform that allows users to save while receiving professional investment opportunities that are likely to perform better than traditional bank savings.
Best for
Savings by Kenyans and East Africans seeking above-inflation earnings.
5. Cowrywise (Nigeria)
Cowrywise specializes in savings and investment plans via automation.
Returns
Up to 15% per annum
How It Works
The platform automates user deposits into fixed income and other types of investments.
Best For
People who want savings and investments to be automated.
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