How to Lock Money on Opay App & Make Money in 2024
Opay has become a popular digital finance platform in Nigeria, providing different kinds of financial services including payments, transfers, and savings.
One of the greatest features of the Opay app is the ability to lock money in a fixed savings plan, which allows users to earn interest on their savings over a specified period.
This guide will walk you through the steps on how to lock money on Opay app, explain the benefits, and provide detailed information on interest rates and other important considerations.
Let’s get started.
What is Opay Fixed Savings?
Opay fixed savings is a feature that allows users to deposit a certain amount of money for a fixed period, during which the money cannot be withdrawn.
In return, users earn interest on their savings, which is paid out at the end of the fixed period.
This feature is ideal for individuals looking to save money and earn a higher interest rate compared to regular savings accounts.
Benefits of Locking Money on Opay
Higher Interest Rates: Fixed savings plans typically offer higher interest rates compared to regular savings accounts.
Financial Discipline: Locking your money ensures that you cannot withdraw it until the end of the fixed period, promoting better financial discipline.
Security: Your savings are secure and insured, providing peace of mind.
Flexibility: Opay offers various fixed savings plans with different durations to suit your financial goals.
How to Lock Money on Opay App
The process on how to lock money on Opay app is simple. Kindly follow the essential guide in this steps:
Step 1: Open the Opay App
First, ensure that you have the Opay app installed on your smartphone. The app is available for both iOS and Android devices. Open the app and log in to your account.
Step 2: Navigate to the Finance Section
Once you are logged in, look for the “Finance” option in the footer navigation menu. Tap on it to open the finance section of the app.
Step 3: Select Fixed Savings
In the finance section, you will see various savings options. Tap on “Fixed” to proceed to the fixed savings page.
Step 4: Create a Plan
On the fixed savings page, tap on “Create a plan” to start setting up your fixed savings plan.
Step 5: Choose the Duration
You will be prompted to select the duration of your fixed savings plan.
Opay offers various durations ranging from 30-60 days, 60-300 days, and 300-1000 days. Remember, the longer the duration, the higher the potential interest you can earn.
Step 6: Fill in the Plan Details
Next, you need to fill in the details of your savings plan. This includes the plan name, the amount you wish to save, and the payback date.
Step 7: Select Lock or Unlock
This step is crucial. You need to decide whether to lock or unlock your savings plan.
If you choose to lock the plan, you will not be able to withdraw the money until the due date.
If you choose to unlock it, you can withdraw the money at any time, but the interest rate may be lower.
Step 8: Make the Payment
After filling in the plan details, tap on “Next” to proceed to the payment page. You can make the payment using your Opay account, Owealth, ATM card, or bank deposit.
Step 9: Confirmation
Once the payment is successful, your fixed savings plan will be created. You will receive a confirmation message, and your savings will start earning interest from that moment.
You’ve just explored how to lock money on Opay, now let’s see the interest rates on Opay fixed savings.
Interest Rates on Opay Fixed Savings
The interest rates on Opay fixed savings vary depending on the duration of the savings plan and the amount saved. Below is a table showing the interest rates for different durations and balances:
| Duration (Days) | Balance ≤ N300k | Balance > N300k |
| 7-60 | 15% | 6% |
| 61-180 | 16% | 7% |
| 181-364 | 17% | 8% |
| 365-1000 | 18% | 9% |
As you can see, the longer the savings duration, the higher the interest rate you can potentially earn.
For savings of N300,000 and below, you will be paid 15-18% annual interest.
For savings above N300,000, you will be paid interest of 15-18% for the first N300,000 and 6-9% interest for the remainder of the money.
Example Calculation
Let’s say you decide to fix N500,000 for 90 days. Since it falls within the 61-180 days range, you will earn interest of 16% on the first N300,000 and 7% on the remaining N200,000.
Here is the calculation:
- Interest on N300,000: (16% * 300,000) / 365 * 90 = N11,835
- Interest on N200,000: (7% * 200,000) / 365 * 90 = N3,452
Total interest earned in 90 days = N11,835 + N3,452 = N15,287
After deducting 10% withholding tax (N1,528), the total interest earned in 90 days is N13,759.
Important Considerations
Early Withdrawal Penalty: If you withdraw your savings before the due date, you will lose 100% of the interest earned.
This policy is in place to encourage users to keep their savings until the end of the fixed period.
Payment on Liquidation: Upon liquidation, the money will be paid to your Owealth account within 48 hours.
Tax Regulations: In compliance with Nigerian tax regulations, a 10% withholding tax will be deducted from the interest earned on each savings plan.
Read: How to Use Flexi Credit on PalmPay: A Step-by-Step Guide
Tips for Maximizing Your Savings
Choose Longer Durations: To maximize your interest earnings, consider choosing longer durations for your fixed savings plans.
Regular Savings: Make it a habit to regularly save a portion of your income in fixed savings plans to build a substantial savings over time.
Monitor Your Savings: Keep track of your savings plans and interest earnings through the Opay app to stay informed about your financial progress.
Conclusion
Locking money on the Opay app is a smart way to save and earn interest on your savings.
By following the steps outlined in this guide, you can easily set up a fixed savings plan and start earning higher interest rates.
Remember to choose the duration that best suits your financial goals and be mindful of the early withdrawal penalties.
With disciplined savings and the right plan, you can achieve your financial objectives and enjoy the benefits of secure and profitable savings with Opay.