Cowrywise is a financial technology startup that was started in July of 2017. Its goal is to make saving and investing easier. This is accomplished via its automated savings platform as well as numerous investment platforms such as money market funds and mutual funds. They have also worked with investment firms in Nigeria to make the investment process easier for their customers. Meristem and Afrinvest are two of the companies with which they collaborate.
Want to know more? Read on.
An Overview of Cowrywise
Cowrywise is available on both Google Play and the Apple App Store. The app has a star rating of 4.3 in the Play Store, with over 10,000 downloads and 2,000+ reviews.
You can use the app to:
- Make investments and savings.
- Diversify your investing portfolio.
- Earn daily returns on your savings.
- Make ad hoc withdrawals.
- Have 24 hour support.
Reviewers are typically delighted with the app’s functionality. However, one of the reviewers complained that the app was too obtrusive by popping up notifications whenever a new update was ready.
Another reviewer noted that the program kept pushing them to download updates even after they had already done so.
Despite the few negative reviews, the app performs a wonderful job of assisting you in saving and investing.
How Cowrywise Works
Cowrywise’s monthly plans allow you to begin saving and investing with as little as N100. The software also has four different features from which to choose, depending on your financial objectives. The following are the features:
- Regular Savings: You can save for a minimum of three months with this option. If you select this option, you will receive an annual interest rate of 10%–15%.
- Life Goals: This allows you to save for a certain goal. For example, you might want to be able to afford your tuition. It could also be for vacation planning in a foreign nation. Whatever your plans are, the minimum length for life objectives is one year.
- Halal Savings: For Muslims who do not want to pay interest on their savings, this service is available.
- Savings Circle: This encourages people to set shared goals and save toward them.
Cowrywise partners with financial firms to provide its customers with a diverse variety of mutual funds in Nigeria. Meristem, Afrinvest, Lotus Capital, and United Capital are among them. This range enables you to vary your investment portfolio based on your investment objectives.
These funds are also professionally managed to guarantee that customers receive the best possible returns.
Cowrywise provides a stronger incentive to save money. Customers are more willing to save and even invest their savings if they receive a higher return on their savings.
Cowrywise explains how to save and invest in dollar mutual funds.
Cowrywise currently provides access to the following Dollar mutual funds: United Capital Nigerian Eurobond Fund, ARM Eurobond Fund, FSDH Dollar Fund, and Stanbic IBTC Dollar Fund.
How To Start Saving and Investing Money on Cowrywise.
- You must have the most recent version of the Cowrywise app.
- Select the “Invest” tab. Click the “Create a new investment” button.
- Take the optional risk assessment. This is a brief assessment that will tell you what type of investor you are—a low-risk, medium-risk, or high-risk investor
- Select “Dollar Mutual Funds” and invest in the selection of your choice.
How to Withdraw From a Mutual Fund
- Tap “Invest” to withdraw from the fund at any moment.
- Choose “USD Mutual Funds”
- Choose the dollar investment plan that you want to sell.
- Select the three dots in the upper right corner.
- Select “Sell Units”
Keep in mind that if you sell your units before the return payout date, you will only profit if the price per unit has risen. This means that if you bought a unit for $10 and sold it for $11, you made a $1 profit per unit.
Long-term investing with mutual funds
Mutual funds are designed to grow and preserve the value of your investments over time. It is not suitable for short-term investments of less than a year.
When you invest in dollar assets, you can expect two types of returns:
- Returns/Interests. This is the return on your investment in a dollar fund. Cowrywise displays the funds’ year-to-date (YTD) performance. This is the amount of profit or return earned by the investment from January 1 of the current year to the present date. It does not guarantee what the final results will be.
- Changes in the value of the Naira in relation to the USD: This means that as a Nigerian who has invested in dollar funds, you will benefit from higher returns if the Naira falls in value against the USD.
Piggyvest vs. Cowrywise
Savings are an important part of anyone’s life, especially if you earn a regular income. It is also critical to invest your savings effectively in order to get the most out of your money.
Cowrywise and Piggyvest are the most popular savings and investment apps in Nigeria, and we will go over the features of both to help you make an informed selection.
PiggyVest vs. Cowrywise for Savings
Cowrywise is a Nigerian savings and investment company that aims to make saving and investing easier and more profitable.
They debuted in 2017 and offer quality financial services to the general public. Cowrywise allows you to start saving and investing in periodic programs with as little as N100. They have also made four separate features available to appeal to everyone’s financial goals.
Cowrywise Savings Options
The first is Regular Savings, which allows you to save for a minimum of three months at a 10%-15% annual interest rate. The second option is Life Goals, which allows you to save for a specific goal, such as tuition, for a minimum of one year. The third option is Halal money, which is designed for Muslims who do not want to earn interest on their money. The fourth option is the Savings Circle, which encourages people to set common goals and save for them.
Piggyvest Savings Options
Piggyvest, on the other hand, is essentially a savings platform that helps people attain financial independence by saving and investing.
It enables you to save little sums of money (daily, weekly, or monthly) towards a certain goal or to lock your assets away for a set period of time. The Piggyvest app includes a variety of tools that make saving and investing more pleasant.
The first is Piggybank, which is the main savings feature of Piggyvest and pays 10% each year. The second option is Safelock, which allows you to set aside money for a set amount of time and not access it until the time runs out. The third feature is Targets, which allows you to save for a specific objective, such as house rent. The fourth feature is Flex Naira, which is a flexible savings wallet that retains the other features’ interest.
The fifth function allows you to convert your savings into dollars. Market conditions are what determine the interest rates for this feature.
In terms of withdrawals, interest rates, and investments, Cowrywise beats PiggyVest.
Withdrawals
Piggyvest’s withdrawal mechanism is more flexible, allowing you to specify your own withdrawal dates or use the Piggyvest official dates of March 31st, June 30th, September 30th, and December 31st. If you withdraw outside of the specified days, you will be charged a 5% penalty fee. Cowrywise is tighter on withdrawals and better for financial discipline because you will not be able to access the funds until the time limit you set expires.
Interest Rates
Piggyvest offers interest rates ranging from 10% to 15.5%, while Investify offers up to 22% per year. Cowrywise provides 10%–15% on savings, whereas mutual funds can receive up to 20% per year.
Investify, Piggyvest’s investment function, essentially allows you to make more on your savings by investing in primary and secondary possibilities. You can invest N5,000 in low-risk investments such as agriculture, transportation, and real estate.
Cowrywise provides Mutual Funds, a component of the savings circle that allows you to invest in mutual funds with as little as N100.
Piggyvest vs. Cowrywise: Investment and Savings
Piggyvest and Cowrywise provide comparable tasks and are at the forefront of Nigeria’s savings and investing apps. Both offer savings and investing options, but one is better suited for saving while the other is more suited for investment.
Piggyvest is great for saving because it is primarily considered a savings app. In addition, its flexible withdrawal method makes it simple to access your savings in an emergency.
Cowrywise, on the other hand, is a better investing platform due to its mutual fund features and wide range of investment choices.
What is Cowrywise Used For?
Cowrywise makes saving and investing easier. Cowrywise’s automated and user-friendly platform alleviates the burden and planning required to save and invest on a regular basis.
Is It Safe To Invest On Cowrywise?
Cowrywise was designed with your safety in mind. Customer information is encrypted, rendered unreadable, and securely kept.
Does CBN Recognize Cowrywise?
Cowrywise is not a financial institution. The CBN oversees bank regulation. Cowrywise is a fund manager with a license from and under the supervision of Nigeria’s Securities and Exchange Commission (SEC) to carry out savings and investing activities.
What Is The Minimum Amount To Invest On Cowrywise?
Cowrywise allows you to start investing with as little as N1000 for Naira mutual funds and $10 for Dollar mutual funds.
Can I Withdraw From Cowrywise Any Time?
When you save money on Cowrywise, you must lock it for a set amount of time and can only extract it when the maturity date arrives.
How Do I Put Money On Cowrywise?
Cowrywise allows you to fund your savings or investing plans with your debit card, direct bank transfers, or your virtual wallet called Stash. You can add your card at the time of plan creation.
How do I Cancel My Cowrywise Investment?
You sell your units:
- Log in, go to the home page, and click Invest.
- Select Naira or Dollar Funds as your mutual fund category.
- Choose the mutual fund you want to sell.
- Tap the three-dot icon in the upper right corner of the page.
- Tap Sell Units and enter the quantity of units you want to sell.
- Confirm the purchase.
Can I Invest with 5000 Naira?
You can actually begin investing with as little as 5,000 Naira! Investing is an important step toward financial independence, and there are various investment options that allow you to start small and gradually build your portfolio.
Conclusion
As a prospective user or investor in Cowrywise, you may be concerned about the platform’s credibility. There’s no need to be concerned; your investments are in capable hands.
Cowrywise is a legal entity because it is a registered FinTech company in Nigeria. They also have a staff of investment professionals who invest and manage depositors’ cash in various financial instruments in order to maximize consumer returns.
Concerning the safety and security of savers’ funds, Meristem Trustees, which are registered with the Securities and Exchange Commission (SEC) on the saver’s behalf, hold the assets.
So, what are you waiting for? Start making your money work for you with Cowrywise and save for your goals.
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