PiggyVest, the digital saving and investment bank co-founded by Odunayo Eweniyi, one of Nigeria’s top fintech entrepreneurs, has extended an N7.5 million interest rate offer to Ilebaye, the latest winner of BBNaija’s N120 million grand prize.
The announcement of this offer was made through Piggyvest’s official platform on X on a Sunday.
As per the tweet, Piggyvest proposed that if Ilebaye invests N60 million in the bank, they will guarantee a return on investment of N7.5 million within a year (paid upfront).
Piggyvest claims this translates to more than a 12% interest rate. However, in response to the tweet, another financial institution, Fairmoney, asserted that they could offer Ilebaye a higher interest rate if she chose to save half of her BBNaija prize money with them.
Fairmoney pledged to provide her with over N12.5 million in interest, equivalent to 23% over a year.
Reactions
The announcement by PiggyVest has triggered a flurry of reactions, with some users on the app expressing dissatisfaction with the interest rate offered by the fintech company.
One user, Slimzy12, suggested increasing the interest rate to N15 million and indicated that even then, they would need to persuade Ilebaye to agree, as they found the current interest rate too low. “7 m?
Increase the interest to 15m I will talk to Baye that is if she agrees self, unaa interest too low aIBay clientwaya moneya beg”
This user stated that the bank was going to use Ilebaye’s funds to invest in stocks and even charge her if she tried to pull out her money.
We know how you guys operate. Lock user funds and use the funds to invest in stocks. Speculative assets and other assets. If the client decides to withdraw, he pays a fee so either way you make a profit. More or less like banks but this time around users can’t access their money
We know how you guys operate. Lock user funds and use the funds to invest in stocks. Speculative assets and other assets.
If the clients decides to withdraw, he pays a fee so either ways you make profit. More or less like banks but this time around users can't access their money
— Cmvng (@i_am_vickyd) October 2, 2023
@Hendrixvictor2 also questioned the wisdom of the investment, considering the fluctuation of the Nigerian Naira.
With how the naira is moving it’s a very bad investment
With how naira is moving it’s a very bad investment
— HNDRX (@hendrix_victor2) October 1, 2023
YomideWonda
“Lol! A whole year to earn 7m? Even if I Dey bet I go surely make another 60m with 7m”
Lol! A whole year to earn 7m? Even if I Dey bet I go surely make another 60m with 7m
— Yomide_freddrie (@yomide_Wonda) October 1, 2023
Big Ayodeji
Invest 60m to get 7m in 1yr??? That’s a bad investment!
Invest 60m to get 7m in 1yr??? That's bad investment!
— Aberuagba Ayodeji (@BigAyodejii) October 1, 2023
Lanre Atiba pointed out the disparity between PiggyVest’s interest rates and Nigeria’s monetary policy rate (MPR) and inflation rate, suggesting that their offer was not competitive.
PiggyVest needs to review its interest rates, with MPRabove 15% and inflation at 25%, offering 13% interest on deposits is not competitive at all
PiggyVest really needs to review this their interest rates, with MPR at above 15% and inflation at 25%, offering 13% interest on deposits is not competitive at all
— Lanre Atiba (@theLordCade) October 2, 2023
