How investa.ng interest is being calculated

We get a lot of questions about how we calculate our weekly interest on our savings features.

Probably because we pay every Thursday and so many people expect something else than they receive.

Well our interest rate vary based on your savings duration

Below are the interest rates:

3 Months savings gives you 4% interest.

6 Months savings gives you 9% interest.

12 Months savings gives you 20% interest.

24 Months savings gives you 45% interest.

The good thing about investa.ng savings is that you get a fraction of your interest paid weekly, Thursday to be precise.

Meanwhile many feel they would get 20% on their savings weekly if they are doing the 12 month savings.

However, it doesn’t work that way.

So let’s do a little mathematics.

Let’s say you subscribe to 12 months savings period which gives you 20% interest, what we do is divide 20 by 52 weeks(12 months) and pay the percentage of that on your current total savings.

If I am saving 5000 naira weekly(for a 12 month period) and this week I have saved 25000, the system calculate 20% divided by 52(weeks)  and multiply it by my current total savings and pay the value as my interest

20/52 = 0.385%

So (0.385/100) x 25000 = 96.23. So my interest for that week is N96 If by next month my total savings is 500, 000, my interest (0.385/100) x 500, 000 which equals 1,925 and that would be my interest for that week. As your money increases, your weekly calculated interest increases. The accumulated interest is what you get at the end of 12 months which would not be 20% of your total savings.

To allow it make sense, if you save 20,000 in first week of January and you did not add to it till end of the 12 months, you would get (0.385/100) x 20, 000 per week which would accumulate to approximately 4000 which is 20% of the static 20, 000 you saved since the beginning of the year.

NOTE

If you attempt to withdraw before your set withdrawal date, you loose your interest and 4% of your savings(this would probably be reviewed to 2%). This is to help you to be disciplined to your savings.

I hope this helps to you understand how interest works.

P:S: You can also read up on investa.ng fund wallet withdrawal policy using the link below

Investa.ng withdrawal policy

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