The interest rate on Cowrywise savings plans is stated annually, but your interest is prorated based on how long your funds are saved or invested.
For example, if you save ₦100,000 for 3 months at a 10% annual interest rate, here’s how the calculation works:
Monthly interest = (10% of ₦100,000) ÷ 12 = ₦833.33
3-month interest = ₦833.33 × 3 = ₦2,500
So, you’d earn ₦2,500 in interest after 3 months.
If your savings plan includes regular or irregular contributions, the calculation can get a bit more complex. But not to worry, we’ve made it simple for you. Interest is calculated daily, and you can easily track your daily returns directly in the app.
Here’s the formula used for daily calculations:
Daily Interest = (Principal Amount × Annual Interest Rate) ÷ 365
This ensures your savings grow consistently and transparently every day.
You can read more about the interest rate here.