How to Lock Money on OPAY using Savings

Written by Dosumu

Edited by Temmy Samuel

Fact-checked by Temmy Samuel

OPAY is a prominent fintech in Nigeria and many people are using the platform more than traditional banks. It's a mobile money platforms operating under CBN's MMO license since 2018. The company offers it services through two mobile apps: OPay App and OPay Business.

These apps are available on both popular apps stores: Apple App store and Google Play Store. Through these apps, OPay offers users with primary banking services including interbank transfers to local banks, bills payment, debit and virtual card, loans, and savings.

In this article, we'll dive in-depth into the savings features on the OPay and talk about how to lock money using the savings features.

How Savings works on OPAY

There are five (5) savings features (also known as savings wallets) on OPAY: OWealth, Targets, SafeBox, Fixed, and Spend and Save. See them in the illustration's image below.

These OPAY's savings and investment services are powered by BlueRidge Microfinance Bank in partnership with other SEC-licensed asset managers, which manage the pooled funds in low-risk investment products.

1. OWealth

OWealth is a savings account on OPay that allows depositors to earn 15% per annum on the first ₦100,000 and 5% per annum on the remaining balance. The account works similarly to OPay wallet but the only difference between them is that OPay wallet doesn't offer interest on your deposit.

OWealth pays interest on a daily basis. Interest is calculated daily and credited to your OWealth account every morning. The funds are not locked—you can withdraw anytime without penalties. You can also use the OWealth balance to complete bank transfers, pay bills and other payment on the OPay app. Meanwhile, a 10% withholding tax will be charged on your interests.

You can activate the OWealth savings account on your OPay app. Once the account is activated, you will begin to earn daily interest rate as shown in the image above. You can also choose to auto-transfer the money received into your OPay wallet to OWealth balance to start earning interest the following days.

2. Targets 🎯

Targets is a goal-based savings product on the OPAY app that allows users to set aside money for specific purposes (like rent, school fees, or travel) over a chosen period while earning interest.

This savings plan offers a flexible duration of 1 to 12 months, with an interest yield of 15% per annum on amounts up to ₦300,000 and 6% per annum on any excess above that.

You can top up your savings anytime, either manually or through auto top-up options, and a Halal-compliant non-interest savings option is available for those adhering to Islamic financial principles. Withdrawals before maturity are permitted but may result in the loss of accrued interest and a break fee.

3. SafeBox

SafeBox is a savings product on the OPay App that allows investors to save at any time, set automatic deposits and enjoy four free withdrawal days yearly. With this savings feature, you can earn up to 15% annual interest on savings.

That's to say, balances that's ₦300,000 and below, your daily interest will be calculated at 15% annual interest rate while for balances over ₦300,000, the first ₦300,000 will be calculated at 15% interest rate while the remaining balance will be calculated at 6% annual interest rate.

This is the savings account where users can lock money on OPay.

Likewise, OWealth and other savings plans on OPAY, Nigerian tax regulations will withhold a tax of 10%, applies to the interest earned on your savings. For example, if your total SafeBox balance is ₦400,000, ₦300,000 will be calculated at 15% annual interest rate while the ₦100,000 balance will be calculated at 6% annual interest rate.

Therefore, your annual profit earned will be: (300,000 × 15% + 100,000 × 6%) × (1 - 10% withholding tax) = ₦45,900. However, the interest is calculated daily and paid on the first day of the next month. Daily interest = Amount × ((1 + Annual Interest Rate) ^ (1/365) - 1) × (1 - 10% withholding tax).

Furthermore, you can set up “AutoSave Deposit” and save with discipline on a monthly, weekly or daily basis. Once set, the money will be automatically transferred from your OPay balance to your SafeBox savings.

It's also important that there are 4 free withdrawal days in a year, attached to SafeBox. March 31st, June 30th, September 30th, and December 31st are the free withdraw days. It’s free to withdraw on free withdrawal days.

This is to promote savings discipline and help you meet your savings goals faster. You can also set your own free withdrawal days, however, once set, you cannot go back to using SafeBox’s fixed free Withdrawals Days. But if you wish to liquidate your savings, a breaking fee of 2.5% of the withdrawal amount (minimum ₦0.01) will be charged.

4. Fixed

Fixed savings on OPay is a savings plan where you can deposit and earn returns with an interest yield of up to 18% per annum on balances of ₦300,000 and below, and 9% per annum on the remaining balance above ₦300,000.

This savings account offers a savings duration of 7 to 1000 days with a one-time initial deposit. Withdrawals before maturity are allowed but result in losing accrued interest and incurring a fee. This is another savings account where users can lock money on OPay.

Additionally, a Halal-compliant option is available, allowing users to opt out of receiving interest on their savings.

5. Spend and Save

The Spend and Save savings account on OPay is a feature where you automatically save a percentage of every amount you spend or transfer, with a default setting of 10% (adjustable to 20%, 50%, 70%, or 100%).

It offers up to 15% per annum interest on your savings, sourced from your OPay balance and OWealth. The plan includes mandatory savings, daily interest accrual, and allows withdrawals anytime.

Locking Money on OPAY

As we've discussed the five savings plans available on OPAY above, it's much easy to identify the ones that can be used to lock money for a period of time. Fixed and SafeBox are the two savings account that can be used to lock money on OPAY.

The Fixed savings account allows you to lock idle funds for at least 7 days to earn higher returns and restricts access until the maturity date, and SafeBox is a strict savings plan with limited withdrawals where funds are locked until the set withdrawal date. These plans help ensure your money remains locked, secure and earns interest over the specified period.