Piggybank v Cowrywise

Piggybank (now Piggyvest) and Cowrywise have kept their names on our lips all through Christmas and into the new year. Early last year I wrote a piece on Piggybank.ng . However after the Pamilerin incident Cowrywise came under my radar.

 I tried my best to fully understand the difference between the two entities but unfortunately most blog posts on it seem paid to favour a particular organisation over the other instead of an unbiased and critical research on the differences between these two entities. So, I took it upon myself to get to work! Ask the right people questions and give my avid readers a good breakdown of the two entities vis a vis each other. So sit down, relax and try and decipher the simple message behind the legal jargon.

  1. Corporate Structure

The two entities have different corporate structures. Piggyvest acquired a microfinance bank and it’s license .Piggyvest also a registered cooperative; Piggytech Cooperative Multipurpose Society Limited.

Cowrywise is a financial advisory firm; the customers’ savings are held in trust by Meristem Trustees. Meristem Trustees is regulated by the Security and Exchange Commission.

  1. Insurance

All saved funds on Piggybank are warehoused with and managed by AIICO Capital, registered and licensed by the Securities and Exchange Commission (SEC). Cowrywise has its money held in trust by Meristem Trustees and therefore Meristem Trustees is held responsible for the money saved on Cowrywise.

3. Saving Plans

Piggybank divides its savings into Core Savings (now piggybank once Piggy vest takes shape), Safe lock, Flex Account, Target/ Group Savings and flex account. Cowrywise divides the saving plans into five main groups; Periodic Plans, Life Goals, Save as you earn, Fixed Plans and Interest Free Plans (Specifically for Muslims) However, you can create other saving plans. Cowrywise newly introduced group savings to its platform.

  1. Interest

Piggybank operates a simple interest system. What this means is Piggybank gives you interest on what you saved. Cowrywise on the other hand operates a compound interest system.  What this means is Cowrywise gives you interest on your savings + interest annually.

  1. Interest Rate

Piggybank’s Target Savings Interest is 10% per annum and it is paid daily to your PiggyFlex account. The minimum duration you can set is 30days. This is suitable for short-term savings. SafeLock on Piggybank is 13% per annum prorated according to the duration you set, this is usually for a Minimum of 90 days. The minimum amount you can SafeLock is N1000.

Cowrywise offers a minimum of 10% per annum which accrues to you on daily basis and goes as high as 15% per annum on longer durations.

Piggyvest

Piggyvest

  1. Breaking Savings

With Piggybank ( Piggyvest) you have the option of breaking your savings 4 times in a year. You can also break outside the 4 times but you will be charge a 5% penalty. Cowrywise on the other hand forces you to save for a minimum of three months. During this 3 months you cannot break your savings except in emergency situations. Emergency situations have not been fully explained by Cowrywise.

  1. Financial Advisory Services

So far, it seems Cowrywise is taking the lead in offering financial advisory services targeted to the needs of their customers.

I hope this helped you in understanding the two powerful financial institutions changing the status quo. Each team has a unique factor that sets them apart. They serve different needs and depends on what you are looking for. What I suggest is read this article again, understand your personality type, choose what works for you and stick to it. I use both platforms. One is for old age retirement while the other is for emergency situations, savings for targets, etc. Can you guess which?

By the way other savings and investments platforms exists such as Cashbox, KoloPay, I- Invest, Payday Investor, etc.

Disclaimer

The information supplied here is solely based on research and does not identify as Financial or Legal Advice.

21 thoughts on “Piggybank.ng ( PiggyVest) V Cowrywise

  1. Lovely writeup Tosin.
    I save with both too, they have different structures that makes them unique for my savings plan.
    I have mixed feeling though…I still hope I can access my cash just when I plan to, afterall you save for a purpose.

    1. Hi Taiwo,

      I am certain you can access your cash when you plan to, but i know they have minimum days which your money will be held. Piggyvest allows you break your savings with a penalty but Cowrywise will not allow you break until the day you set expires. I still feel other investment options should be looked into e.g Treasury Bills. I’ve never tried to withdraw from them so please when you do tell me how it goes!

  2. Hey very cool blog!! Guy .. Excellent ..
    Wonderful .. I’ll bookmark your site and take the feeds additionally?
    I am satisfied to seek out numerous useful information right here within the
    publish, we want develop more strategies on this regard, thanks
    for sharing. . . . . .

  3. Piggyvest has been a life saver for me. I used to spend unnecessarily and at the end of the year I still have debts to settle.

    Since I started using Piggyvest, that narrative has changed.

  4. I’m using Cowrywise and I’m comfortable with it. Especially now they have introduced Mutual Fund investment into their system, I think every Nigerian should be part of it, for the future.

  5. Great write up. Fintechs are indeed changing banking services in Nigeria. I save with Cashbox & i’m really loving it. Withdrawal is easy & i still can’t believe my small change savings is amounting to something!

  6. Your comment “it seems cowrywise is taking the lead in ….” Sounds more like an endorsement.

    I use the two by the way.

    So I’m only saying let people use their own judgements like you said in the next paragraph.

    Your research is really helpful. Thanks a bunch!

    1. Thank you for the Feedback! Taking the lead was as regards a particular feature. I use both as well; please all users should choose the platform they are comfortable with.

      Xo
      Tosin

  7. Hi thanks for this info it’s been highly useful, one thing though, I read some where that piggyvest interest rates is accrued to 2.5% on July 1st i.e half point mark of the year. I want to know if this is true and also if this is accrued irrespective of the time you started saving. Finally does cowrywise allow u set withdrawal dates aside from the 3 months thing they force u set up?

    1. I don’t know about the piggyvest accruing thing but you can reach out to ⁦‪@joshchibueze‬⁩ on twitter. Secondly, Yes Cowrywise allows you set withdrawal dates aside from the 3 months. However, the 3 months is the minimum time to lock your funds.

  8. Great writeup. However, you failed to mention the Piggy Points that PiggyVest offers. It means that you earn points as a save and one point is equals to ₦10. For example when I save ₦10,000 I get 10 points which can be converted to ₦100, ₦40,000 for ₦400 and so on. This is in addition to my interest accrued. I think this is one of the perks that gives leverage over Cowrywise, in my opinion.

  9. Please is it something that can fold? I mean the piggy vest and cowry wise. I hope I will not hear stories someday that I can’t withdraw because of some excuses..

    1. Every Company can fold, it depends on management decisions and judgements. Both platforms went an extra mile to offer some form of protection to their Users, i.e via NDIC and Meristem Trustees. At the end of the day we all have to use wisdom, never put all your eggs in one basket. Secondly, follow your gut!

  10. Thanks for this, I was really looking forward to understanding how both platforms work and you were quite objective in your review of that.

    Like you said, I’d read through again before deciding. Thanks again.

  11. Tried registering on cowrywise platform.
    Everything looked awesome, customers service top notch.
    Got a call from them that explained every aspect of the app.
    The beauty is that I got a new account number linked with Providus Bank with which according to the customer agent, anyone can send money to me directly into my cowrywise. I now have a new account number courtesy of cowrywise from providus bank.
    I think this is a winner for cowrywise.
    Instead of linking my card.
    I can just transfer funds or have creditors pay in into my cowrywise account.

    1. Nice! PiggyVest also has a similar feauture. It is called the Flex Account Number And works in a similar way as cowrywise.

  12. Have been using piggyvest, had about cowrie in the past but never knew who they are until I stumbled on them on Twitter. My Google search brought out so many comparisons, but yours is the most qualitative I read so far. , I will explore the cowrie now

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