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