WHAT THE BANKS ARE NOT TELLING YOU ABOUT THE MONEY YOU KEEP IN YOUR SAVINGS ACCOUNT (Shhh… we found out and here’s what we are doing about it).

WHAT THE BANKS ARE NOT TELLING YOU ABOUT THE MONEY YOU KEEP IN YOUR SAVINGS ACCOUNT (Shhh… we found out and here’s what we are doing about it).

Savings has been a word we have been accustomed to over the years. However it has changed, recognizably well with civilization. Back in the days, money and valuables were saved in different ways, but none of these guaranteed the safety of the money.

Banks came into the business and finance world, offering a new method for saving that no other method could rival. Imagine keeping your money with an institution where its safety and security is guaranteed. But what is in it for the banks?

What do they do to the money kept in their possession? How does a financially based institution generate its own profit? Why are they so bent on convincing people to save?

You might say it is to develop a saving mentality in people and keeping those funds safe. While that might be true, it is only a part of the truth. Banks have quite a lot to gain when people save with them.

How Banks Have Benefited From Your Savings

1. Investments

Many investments require a large amount of money to go into. Banks use the money kept as savings to invest in such operations and yield large interests.

Banks invest locally and internationally in projects, brands, people, shows, businesses and the likes with authenticity and respect to legalities.

These investments could span over a year, sometimes more and sometimes less.

2. Becoming Shareholders

Banks also utilize the money kept in savings accounts to buy shares and expand their profit margin. Most banks have shares with top companies and markets.

A considerably large revenue is generated from this scheme.

3. Offering Loans

This is the most common process banks use. They utilize savings in their possession to generate profit. Banks loan out money to firms, organizations, industries, and individuals with a specified amount of interest to be paid.

This interest makes a large part of the profit banks derive in their operations. The loans vary and so do interest rates.

What Do You Benefit From Saving With Banks

Now having heard all this, you must be thinking, if banks generate interest using your money, then pay you interest on the money you saved with them, you must be benefiting a lot. Well this is apparently not the case.

Banks draw people in to save with the offer of interest as a seeming price for developing a saving habit.

After generating large sums of money from different sectors using the money clients have put into their savings account, one would expect a considerable amount to be paid back as interest. However, only a meager amount is paid back in form of interest.

The interest for saving is more or less a facade, especially for people with an average saving amount of less than 50,000 Naira. Not only is the interest little, but most times non-existent.

This is because after a while, the interest paid along with a little amount of money in your account is deducted in form of fees like maintenance and stamp duty.

What Extramile Africa is Doing About It

Imagine an organization that offers all what your bank offers and even more. Extramile Africa leverages on the shortcomings of banks and is here to make savings better with your best interest at heart.

Extramile, unlike your everyday bank is a financial institution that gives you many options on how to develop a savings habit.

1. Extra-Wealth

Why let a bank use your money to invest and generate large profits when you can do so yourselves. With Extra Wealth you can invest your money with well researched and trustworthy organizations and have a worthy pay for your savings.

With the Extramile mobile app, you can invest with standard companies and businesses like e-commerce, pharmaceutical, etc with as low as 10,000 Naira.

You get as much as 25% return on your investment in 12 months or 12.5 in 6 months and what’s even better? You have full control of your investments, when to withdraw and how many times you want to invest.

2. Extra-diaspora

With extra-diaspora you can become a shareholder yourself of big companies in your own continent. Why let the bank make the most of your savings when extra-diaspora can help you make even more

3. Extra-credit

With extra-credit, you can apply for loans as well as support from other businesses, investors and shareholders if you own a business of your own.

With at least 20-30% of what you need, you can apply for a loan with no collateral at all.

Why should you leave your cash in a one directional channel such as the bank, which offers only a meager amount as interest when you can make that little amount you have bring you multiple other opportunities.

With Extramile Africa, it is time to become financially independent. Rather than work to save, why not save to work!

Download the Extramile Africa App to get started today!

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