Make money by saving it in a domiciliary account

Posted by Felix Okoli on Tuesday February 19, 2013 at 9:29:53:

A cool way to make money easily in Nigeria is by saving it in a strong currency. Not all savings or bank accounts can actually make you reasonable money so if you are going to save money in your bank account, then you better save it in a currency that hardly loses value in the long term.

On the 2nd of January 1995, the price of the naira to a single US dollar was officially around N21. Eighteen years later, by Jan 2 2013, at N153 to the USD the naira has depreciated by more than 700% while the US dollar has only grown stronger.

Imagine what would have happened if you saved $10,000 in your bank account in 1995, your capital would have grown to N1,530,000 even though you initially invested around N210,000 about 18 years ago. Those people who held N210,000 in their naira bank accounts would have lost a lot of money while you who saved the same N210,00 but in US dollars would have gained about N1,300,000 by 2013.

One of the reasons why people, especially the old, keep losing money in Nigeria is by holding on to the naira. Most of the old people who still have money today simply avoided the naira depreciation by investing in more stable assets. I am not saying that the naira is a totally weak currency by all standards but when compared to the US dollar, it is really weak and has depreciated constantly since the early 1980s. There was a time when N1 was more valuable than the US dollar and even comparable to the British Pounds but gone are those days, until, at least our economy starts catching up and we start to export more than we import.

For the moment now, the best ways to save your hard earned naira would be by converting it to something that hardly loses value like an asset such as a stable foreign currency. Saving your money in a currency like the US dollar is a good investment for now.

Even the Nigerian govt and CBN know this and that's why a huge sum of our money is held in foreign banks in US dollars. The govt then withdraws from this account from time to time when the naira has lost value to invest it in projects to reduce costs.

Having a domiciliary account is a good way to save money in Nigeria without having to lose the value of your capital over a long period of time and still have access to your money any time you want it. Almost every year, it seems that the Nigerian currency keeps losing value and it really does not make much sense.

It is better to save money in USD than in Naira is you just want to hold money and it is even much better to invest in fixed assets like land, housing, stocks, small business than putting money in the bank. If you would rather put your money in the bank so that it doesn't lose money for you in the long term, then it is even better to put int in a domiciliary account where you can have access to it any time you want.

Some people even make money by trading the USD against the naira and vice versa. They buy the USD when it has depreciated a bit like during Christmas and then sell it when it appreciates like before April.

Imagine if you invested say N1.4m for $10,000 in a domiciliary account when the dollar is at around N140 and you let it stay there untul the naira depreciates to about N160. With that scenario, you would have gained N20 for every single dollar and for 10,000 dollars, that would be N200,000 you get just from saving your funds.

So if you must hold money in your bank account, why not make money at doing so by also saving it in a currency that earns you more?

Comments:

Re: Make money by saving it in a domiciliary account

How can i get a dollar act and what can it cus me?
Please me out i read ur article

Re: Make money by saving it in a domiciliary account

how do i engage into this business venture. i really need a guide on how to make money online. im a student of imo state university and want to state my career with online blogging. i have had alot about these and having deep interest in it but not convinced as such. pls poster make me understand better. my email juniorarik_2004@yahoo.com, keep me posted.
thanks

Re: Make money by saving it in a domiciliary account

This is really great, i love this article.
Please which is the best bank that have stress free opening of domicilary acct?.

Hope to get ur info. Soon.
This is the best financial site in Nigeria, that teaches you everything.
I always take my time to check for any of ur new listing bcos i know they are great.

Re: Make money by saving it in a domiciliary account

Personally, I would recommend banks like Access, Stanbicibtc and GTBank.

Re: Make money by saving it in a domiciliary account

Thanks for all your wonderful posts. May God continue to streghten you

Re: Make money by saving it in a domiciliary account

Pls do you know how to open a us bank account here in ng and how to save in that dollars?

Re: Make money by saving it in a domiciliary account

Good post, but 1995 was 18yrs ago, not 10

Re: Make money by saving it in a domiciliary account

Ok, corrected

Re: Make money by saving it in a domiciliary account

This was enlightening. Thanks. I guess I'll go and open a dom account to save my money there

Re: Make money by saving it in a domiciliary account

This was enlightening. Thanks. I guess I'll go and open a dom account to save my money there

Re: Make money by saving it in a domiciliary account

This is my first time of coming across this site, I love this post...may God continue give you more wisdom..thanks

Re: Make money by saving it in a domiciliary account Posted by YUSLUV on Thursday May 15, 2014 at 20:1:39:

How do you save money in a domiciliary account

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