Financial products

Interest is one of the most powerful forces in personal finance — and it can either grow your money or drain it. Understanding how it works helps you make smarter decisions.

• Interest = extra money added to savings or loans. It’s calculated as a percentage of the amount you save or borrow. The key is knowing whether it’s working for you or against you.
• When you save, interest helps you. The bank pays you a small percentage for keeping your money in a savings or investment account. Over time, your balance grows without extra effort.
• When you borrow, interest costs you. You repay more than you borrowed — sometimes much more. The longer the loan, or the higher the rate, the more expensive it gets.

There are different types of interest:

• Simple interest is calculated only on the original amount.
• Compound interest is calculated on the original plus any interest that’s already been added. This can grow (or cost) much faster.
• Example:
• Save ₦100,000 at 5% annually → earn ₦5,000 per year.
• Borrow ₦100,000 at 24% → repay ₦124,000 or more, depending on terms.
• Interest rates vary. Savings rates are usually lower than loan rates. Always compare rates before committing — even 1% difference matters over time.

👉 Know how interest works, so your money works for you — not against you.

• A savings account keeps your money safe and separate from your spending.
• It earns you interest — so your money grows slowly over time.
• You can use it for emergencies, school fees, or big plans.
• It’s safer than keeping cash under your bed (seriously).

👉 Saving in the right place builds your future, bit by bit.

• A loan is money you borrow — but you must pay it back with extra (called interest).
• Loans can help with emergencies or big goals — like starting a business or fixing your house.
• You must repay in small parts (called installments), usually monthly.
• Always check the interest rate and repayment plan before agreeing.

👉 A loan can help — or trap you. Read before you sign.

• A debit card lets you spend money already in your account — no borrowing.
• You can use it to withdraw cash, shop in stores, or pay online.
• Never share your PIN — not even with a “bank worker” on the phone.
• If your card is lost or stolen, block it fast using your bank’s contact line or app.

👉 A debit card is powerful — but only if you protect it like your cash.

Need funding but don’t qualify for a big bank loan? Microloans offer a simple, flexible way to access small amounts of money — especially for business needs.

• What are microloans? Small loans, usually ₦5,000 to ₦500,000, designed to help individuals start or grow a small business.
• Why they matter: They’re a great option for people with little or no credit history — especially in informal sectors.
• Easy to access: Fewer documents, faster approval, and lower barriers than traditional loans.
• Income boost: A microloan can help you buy tools, stock products, or expand services — all of which can raise your income.
• Great for first-time borrowers: Repaying on time builds trust and opens doors to bigger loans later.
• But be careful: Interest rates can be high, and missed payments lead to debt traps. Borrow only what you’re confident you can repay.

Microloans are powerful when used wisely. They’re not free money — they’re a stepping stone to financial growth if managed with care.

Before taking a loan, it’s crucial to understand how the interest rate works. It can affect how much you pay — and how easy it is to plan your finances.

• Fixed interest rate: stays the same — your monthly payment never changes.
• Variable interest rate: can rise or fall — low today, higher tomorrow.
• Fixed rates = easier to plan your budget.
• Variable rates = possible savings, but also more risk.
• Example: fixed rate means paying ₦50,000 every month; variable rate means ₦45,000 one month, ₦60,000 the next.
• Banks can raise a variable rate — always read the fine print.

If you want stability, go with fixed rates. If you can handle ups and downs, variable might work — but be ready for surprises.

Mobile money turns your phone into a wallet. It’s fast, convenient, and safer than carrying cash — if you use it wisely.

• Send, receive, and store money on your phone. No bank account needed. You can pay bills, receive transfers, buy airtime, or send money to family — all through USSD, app, or SMS.
• Safer than cash — if you protect your PIN. Carrying cash is risky. With mobile money, even if you lose your phone, your money stays safe (unless you’ve shared your PIN or OTP).
• Works anywhere, anytime. As long as you have network coverage, you can use mobile money. It’s great for people in remote areas with no nearby bank branch.
• Avoid scams — always. No real financial system promises “double your money.” If someone asks for your PIN, OTP, or tells you to send money to “unlock” a prize, it’s a scam.
• Check your transaction history regularly. Mistakes happen — and so do unauthorized charges. Review your balance and transaction list weekly to stay in control.
• Use registered platforms only. Stick with licensed providers (MTN MoMo, Paga, Opay, etc.). Don’t use mobile wallets that seem shady or ask for strange permissions.
• Set limits if needed. Many apps let you cap how much can be spent daily — great for budgeting and protection.

Mobile money is freedom in your pocket — fast, flexible, and safe when used correctly. Learn the rules, stay alert, and enjoy cashless convenience.