Target Savings vs Fixed Deposit: Which Is Right for You?
Both grow your money, but they're built for different lives. Here's how to choose between Bompai Target Savings and a Bompai Fixed Deposit.
Customers ask us this every week. They have a little money set aside and they want it to work harder, but they're not sure whether to lock it down or keep building gradually. The honest answer depends on what the money is for.
Target Savings: building toward a goal
Target Savings is the right product when you don't yet have the full amount but you know what you're saving for — Sallah, school fees, a wedding, business stock, a phone, rent. You set the target and a date, then contribute weekly or monthly until you get there. Bompai pays interest on the balance, and the account stays open and flexible.
Fixed Deposit: putting an existing lump sum to work
A Fixed Deposit is the right product when you already have the money and you won't need it for a defined period — typically 30, 90, 180 or 365 days. You lock it in, Bompai pays a higher fixed interest rate than ordinary savings, and the money is returned with interest at maturity.
How to choose
- You're still building toward a goal → Target Savings.
- You have a lump sum sitting idle → Fixed Deposit.
- You want flexibility to withdraw at any time → Target Savings.
- You want the highest interest rate Bompai offers → Fixed Deposit.
- You want both? Many of our customers run a Target Savings for the next goal, and roll matured Fixed Deposits into the next one.
A worked example
Aisha sells perfume in Sabon Gari. She has ₦300,000 saved from last Sallah season she won't touch until December. She also wants to put ₦20,000 aside every month for her son's secondary school fees in two years. The ₦300,000 belongs in a Fixed Deposit. The ₦20,000 monthly belongs in a Target Savings plan named 'Yusuf school fees 2028.' Two products, two jobs, one financial plan.
What you'll need to open either
A valid government ID (NIN, driver's licence, voter's card or international passport), a recent utility bill or proof of address, and a BVN. You can open both accounts from the Bompai app, at any branch, or through your nearest Bompai agent.
