Fixed Savings: How to Save Money In Naira and Earn Interest.

For many people in Nigeria, saving has never been the hard part. Keeping the money saved is. You set aside ₦300,000 in January, intending to leave it alone, and by April it has paid for a generator repair, a sibling's exam fees, and a weekend you'd rather not talk about. Each time, the money went because it was there to take.

A fixed savings plan removes that availability. Once the money is in a fixed plan, it has one job and one date, and it earns more interest than a regular savings account while it waits. Rent, school fees, a December trip, stock for your business, a car deposit: if you know roughly when you'll need the money, a fixed savings plan is built for it.

In this guide, you'll learn how fixed savings plans work in Nigeria, how your interest is calculated, what the 10% withholding tax means for your payout, how to choose the right savings period for your goal, and what happens if you need your money before the date. Along the way, you'll see how to open a Raenest NGN Vault step by step.

Key takeaways

• A fixed savings plan holds your money for an agreed period at an interest rate that won't change until the period ends.
• On Raenest, you can save naira for 1, 3, 6, 9 or 12 months, or pick a custom maturity date where available. The minimum is ₦50,000.
• Interest is simple, not compounded, and you receive it with your principal at maturity.
• The CBN requires 10% of the interest on naira savings to be withheld as tax, so plan with the after-tax figure.
• You can still access your money early on Raenest. You'll forfeit the interest and pay a ₦1,000 fee, but you'll get your principal back.
• You can fund an NGN Vault from any Raenest wallet, including USD, GBP, EUR, USDT and USDC.

What is a fixed savings plan?

A fixed savings plan is one where you agree to leave a specific amount untouched for a specific period. In return, the provider pays you a fixed interest rate for that period.

Three things define every fixed savings plan:

• The amount you save at the start.
• The savings period, which ends on your maturity date.
• The interest rate, agreed when you create the plan and fixed until maturity.

The commitment is the whole point. Money in a regular account is easy to spend on unplanned expenses. Money in a fixed plan has a job and a date, and the higher interest rewards you for leaving it alone.

🔗Also read: 6 financial strategies to grow your wealth in 2026.

How to open an NGN Vault on Raenest

You can set up a plan in a few minutes from the Raenest app.

1. Download the Raenest app and open the Vault section in your Raenest app.
2. Select NGN Vault.
3. Enter the amount you want to save. The minimum is ₦50,000.
4. Choose how long to save: 1, 3, 6, 9 or 12 months, or a custom maturity date if it's offered.
5. Name your vault. Pick a suggested name like Vacation, House, Education, Business, Family or Retirement, or type your own.
6. Select your funding wallet. You can fund from your NGN, USD, GBP, EUR, USDT or USDC wallet.
7. Review the details: your interest rate, expected interest, maturity date and expected payout.
8. Confirm. Your vault becomes active once your funding transaction is complete.

At maturity, your principal and interest (after withholding tax) are paid into your NGN wallet, and you'll get a notification.

How is interest on a fixed savings plan calculated?

Interest on a Raenest NGN Vault is simple interest. It's calculated on the amount you save, at the annual rate, for the length of your savings period:

Interest = amount saved × annual interest rate × (days saved ÷ 365)

Simple interest means your interest doesn't earn interest. You receive it in one go, together with your principal, on your maturity date.

What "per annum" really means

This is where many savers get tripped up. Interest rates are almost always quoted per annum, which means per year. A rate of 16% p.a. doesn't mean you earn 16% on a 3-month plan. It means you'd earn 16% if the money stayed in the plan for a full year. For shorter periods, you earn a proportion of that.

So a 3-month plan earns about a quarter of the yearly rate, a 6-month plan about half, and so on. That's why longer savings periods produce bigger interest figures, even at the same rate.

The 10% withholding tax on naira savings

The Central Bank of Nigeria requires 10% of the interest earned on naira savings to be withheld as tax. Raenest deducts it from your interest and remits it for you, so the amount you receive at maturity is already net of tax.

What if you need your money before maturity?

Life doesn't always follow the plan. A medical bill, a sudden move or a business opportunity that won't wait can all make you need your savings early. Some fixed savings products don't allow that. On Raenest, you can still withdraw your money, but it comes at a cost.

If you withdraw from an NGN Vault before maturity:

1. You lose all the interest the plan has built up.
2. You pay a ₦1,000 early withdrawal fee.
3. You receive the remaining principal in your wallet.

So if you save ₦500,000 and withdraw early, you receive ₦499,000. The app shows the fee and the exact amount you'll receive before you confirm, so there are no surprises.

The exit is there for real emergencies. Using it often defeats the purpose of a fixed plan in the first place, because every early withdrawal throws away the interest you've built up. The best protection is to put in only money you're fairly sure you won't need before the date, and to keep a separate emergency fund in a flexible account you can access anytime.

If you do have to break a plan, it affects only that plan. If you've split your goal across several plans, the rest keep earning as normal.

Start your first fixed savings plan

A fixed savings plan works best when the money has a job and a date. Pick the goal, pick the date, and let the interest build until you need it.

With Raenest, you can save naira from ₦50,000, choose a period from one month to a year, fund it from any wallet, and still access your money early if you need it. Open an NGN Vault.

Frequently asked questions

1. What is the minimum amount for a fixed savings plan on Raenest?

The minimum for an NGN Vault is ₦50,000. The app shows any applicable maximum limit when you create your plan.

2. Can I have more than one fixed savings plan?

Yes. You can create as many plans as you need, each with its own amount, interest rate, savings period and maturity date. For example, one for rent and one for school fees.

3. Does my interest rate change before my plan matures?

No. The rate shown when you create your plan stays fixed until maturity. Rates for new plans may change, but that won't affect plans you've already created.

4. Can I withdraw my money before the maturity date?

Yes. You forfeit all the interest the plan has built up and pay a ₦1,000 fee. You receive the rest of your principal, and the app shows the exact amount before you confirm.

5. Can I fund a naira plan with dollars?

Yes. You can fund an NGN Vault from your USD, GBP, EUR, USDT or USDC wallet. The exchange rate and any fees are shown before you confirm.

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