Between Cowrywise And Piggyvest

Between Cowrywise & Piggyvest

I am going to try to compare CowryWise with PiggyVest and highlight the benefits of both platforms considering people are sleeping on Cowrywise.

PiggyVest is perhaps the most flexible savings platform between the two. You have several options to choose from.

1. PiggyBank, the regular savings where you can set a particular amount to be periodically deducted from your account (you can withdraw at any time for a 5% breaking fee except on the 4 days in a year where you're given free withdrawals).

2. Safelock option where you stash funds away for a period of time at a fixed interest rate (this does not incorporate a periodic savings option)

3. Flex Dollar where you can hold dollar denominated savings.

4. The PiggyFlex which is like a regular bank account with low interest and is tied to a Providus Bank account.

5. Target Savings where you can save towards a target periodically. 

CowryWise on the other hand has 3 primary savings/investment options

1. Saving Plan where you periodically save a particular amount redeemable ONLY on the maturity date set by you. This is in contrast with the 5% breaking fee option from PiggyVest in the same circumstance. 

2. The Dollar Plan where you can hold dollar denominated savings with a minimum investment option of $100. This is in contrast with Dollar Flex where you can save as low as $1. But is a safe option for you to avoid the volatility of the Naira. 

3. Mutual Funds. This is my most preferred option on CowryWise. Here, you are put through a risk assessment to determine your risk appetite (low/medium/high) and offered mutual funds based on you risk appetite. 

It is advisable you seek the advice of a financial analyst if you do not understand how mutual funds work. Always check the composition of the mutual funds and their Year on year returns. 

It is also advisable to invest in mutual funds that have stable instruments (Bonds, T-Bills) in their portfolio. Funds with stocks forming the bulk of their composition are least advisable. You can sell off your mutual funds and get your money back within a 24-hour time frame. 

4. Halal savings (interest free targeted at Muslim customers)

5. The Stash which is tied to a Providus bank account number where you can save money at a lower interest rate and is not bound by restrictions. You can share that account number with friends and receive funds in it. 

Now, I use both platforms and I’d tell you why

With Cowrywise I have a regulator that puts me in check with my spending. A platform that periodically locks away an amount from my account and prevents me from mismanaging my income. 

When I create a new savings plan on Cowrywise, I know that even if I'm on the verge of death, I can't have access to those funds until the set maturity date, it's the "money for the future" kind of plan. The basic plan on CowryWise puts me in check from the very beginning. 

For PiggyVest on the other hand, because of the flexibility in withdrawals, I prefer to use it for emergency funds. Money that I know that if I'm about to starve to death, or have a medical emergency to attend, I can get it for a 5% surcharge. 

So both platforms have their own advantages.

Alternatively, with Cowrywise though, I came up with the idea of using the mutual funds as my emergency option on Cowrywise. I invest in mutual funds with medium/low risk appetite and they yield very decent returns. 

In conclusion, if you want/need strict financial discipline, choose CowryWise. If you're more in charge of your spending and do not need to be forced to maintain a savings culture, choose PiggyVest.

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