If you’ve ever saved money, borrowed money or even used a credit card, you’ve certainly heard about interest. Although you may not have realized how powerful it is.
Interest can be a gentle helper that steadily grows your money while you sleep. However, it can also be a sneaky weight, quietly increasing your debt if you’re not careful. At Rova, we believe interest should work for you, not against you. So let’s break it down with real life examples:
What Exactly Is Interest?
Think of interest as the cost of using money.
- When you borrow money, interest is like “rent” you pay for using it.
- When you save or invest, interest is the “thank you” gift your money earns for not being used..
Basically, your money never sits idle. It’s either costing you or growing for you. There are two main types of interest: Simple interest & Compound Interest.
Here’s how it works:
Simple Interest Vs Compound Interest
Simple Interest — The Straightforward One
Simple interest is calculated only on the original amount you put in (the principal). It’s predictable and easy to calculate. Let’s analyse:
For Example:
If Dave saves ₦100,000 at 10% simple interest per year, this is how Dave’s money grows:
| Principal | Year 1 | Year 2 | Year 3 |
| ₦ 1,000,000 | ₦ 1,100,000 | ₦ 1,200,000 | ₦ 1,300,000 |
Compound Interest — The Multiplier
Compound interest is where things get even more interesting. Here, you earn interest not just on your original deposit, but also on the interest you’ve already earned.
For Example:
If Chisom saves ₦5,000,000 at 10% simple interest per year, this is how Chisom’s money grows:
| Principal | Year 1 | Year 2 | Year 3 |
| ₦5,000,000 | ₦5,500,000 | ₦6,050,000 | ₦6,655,100 |
That extra ₦1,655,000 in Year 3 is Chisom’s interest compounding. Over time, this
snowball effect can create life-changing growth.
To make it even more relatable, let’s take another look at two people:
- Ada: She saves ₦5,000,000 in her Rova Savings Vault for 3 months and earns up to 20% interest after 90 days. That’s money working for her, with zero extra effort.
- Bayo: He borrows ₦5,000,000 on a loan at 20% annual interest and delays repayment. By the end of the year, he owes ₦6,000,000. That’s interest working against him.
Same percentage but completely different outcomes.
Why Interest Matters for You
As a Saver, your interest is an asset. The higher the interest, the faster your money grows. Creating a savings vault with Rova means your savings are rewarded generously, not left idle.
As a Borrower: The higher the interest, the more expensive your debt becomes. That’s why building a savings habit first puts you in control of your money.
Where Rova Comes In
At Rova, we’re committed to making you a saver.
Here’s how:
- Savings Vaults that grow your money: You can lock away funds in a Rova Savings Vault and earn up to 18% interest after a set number of days. That’s your savings multiplying without you lifting a finger.
- Flexibility: We understand how important it is for your money to be flexible so there are various options on the duration to lock your money. With Rova, you’re in full control of your money.
- Transparency you can trust: There are no hidden fees and no hassles. You see exactly how much interest you’ll earn.
- Built for your goals: Saving for rent, travel, school fees or that soft-life reset? Savings Vaults make it easier to set a target and reach it with interest.
With Rova, earning interest isn’t an abstract concept. It simply means that your money is working harder for you.
Tips For Making Your Interest Work For You
- Start early. The earlier you begin saving, the more time your interest has to work its magic.
- Be consistent. Small (or big), steady deposits add up. .
- Pick the right vault duration: Vault for 90, 182 or 365 days. The longer you vault, the more you earn.
FAQs
Q: How often does Rova pay interest?
Savings Vaults on Rova earn interest after a set period. The longer you save, the juicier your earnings.
Q: Do I get my interest upfront or at maturity?
Your interest is paid at maturity, when your vault cycle ends.
Q: Can I withdraw before maturity?
Your Rova Savings Vaults are designed to help you commit to your savings goals. For NGN saving vaults, early withdrawals may forfeit a percentage of the interest. However, you can still access your funds if you need them urgently.
On the other hand, for GBP savings vault, you cannot withdraw your funds before maturity.
Q: What’s the minimum amount I can vault?
With a minimum of ₦50,000 or £500 you can create a savings vault.
Q: Is there a maximum I can vault?
There is no maximum amount! You can vault as much as you’d like, whether ₦50,000 or £10,000.
Q: How often is interest calculated?
Your interest is calculated daily but paid out at the end of your vault cycle.
Q: Can I open multiple Savings Vaults?
Yes, you can! Create different savings vaults for different goals: travel, rent, emergency funds, etc.
Q: What happens when my vault matures?
You’ll receive your original savings plus the earned interest. You can choose to withdraw or roll over into a new vault.
Q: What’s the difference between Savings Vaults and my main account?
Your main account is a current account for everyday spending, while your savings vaults are for structured savings that grow with interest.
