How to Save House Rent with Stanbic IBTC Money Market

Investments are everywhere but the major fear of every new investor is the safety of their capital. With stock market investments, you are not assured of your capital, in money market, your capital is intact. You might be interested in growing your savings or setting money aside for major investments or for other needs but here is how to save house rent with Stanbic IBTC Money Market.

This post is for people who are afraid of losing their capital whenever they hear about investment.

The first time I heard about Money Market was on Facebook from Subomi Plumptre in 2016 through a Facebook advert or Recommended post, I can’t remember which one precisely.

The interest rate was 18% annually then. It went to as low as 11% between 2021 and 2023.

I know 2 companies offering this investment opportunity. These include First Bank and Stanbic IBTC Bank.

I have only used the Stanbic.

One safe way to save money is through a Money Market Account also called a Mutual Fund.

This is not your regular savings or current bank account. You will have to create a Mutual Funds account. The account comes with a 10-digit number.

If you do not have a savings account with the bank, you will be required to create one because that is where you will be redeeming your money from the mutual funds account.

Money market basically involves short-term investment.

Here is how to save/invest with money market.

Let’s say, you are saving up for your rent, a total of 200,000 and you are pushing off 20,000 from your salary account to another account.

At the 12th month, which is your rent payment month, you would have realized 240,000.

Upon paying your rent, you have 40,000 left in that account.

Supposing that money was put in a Mutual Fund account, with an interest rate of 18% annually, you will have a total of 283,200 at the end of the 12th month of your last deposit.

***Take note of the bold text and continue reading further.

Now note that when you fund your Mutual Fund account, the 18% is calculated on the amount you deposited immediately.

However, the interest payout will be spread out for 365 days from the day you deposited your money.

Let me explain.

Let’s say you put a rent of 240,000 at once, the interest rate at 18% is 43,200.

That whole 43,200 will not reflect in your account immediately.

It will be 43,200 naira divided by 365, that is roughly 119.
The 119 naira will be your daily gains on the money until a full cycle of 1 year.

So, should you decide to be topping up 20,000 every month, the interest yield will be calculated for 365 days on EACH MONTHLY top-up.

So, you either send the bulk funds and receive the total yield by the end of the 12th month or keep topping up and receive the total yield at the end of the 12th month of your last top-up.

This is a simplified explanation of how it works.

In reality, the calculation is compounded, that is 18% is calculated based on what is available in your account. So, you are likely to get more based on compounding principles.

How to create a Stanbic IBTC Mutual Funds Account

You can also walk into any Stanbic IBTC Bank branch and ask to open a Mutual Funds account with them. Please use our referral code GXM9JRWL to set up your account. It does not cost you anything.

Also note that you may have to create a regular savings account because you need that account for redeeming your funds from the Mutual Funds account.

So, go with a picture passport, an ID card, BVN and utility bill.

***

→ To create a Stanbic Money account online, create an account here, click on buy now to setup your account and wait for the e-account number to be sent to you.

→ Follow the prompts as shown below to register and create your account.

How to fund Your Money Market Account

The account can be funded from any bank. Minimum amount is 5,000 and in multiples of 1,000. That is 5,000 or 6,000, or 7,000 or 20,000 or 500,000. No 4,000 or 4,800 or less.

To fund your account, log in to your account and click on the Funds → Choose the amount → Method of payment. I recommend using the Transfer method. The funds should reflect in your account within 2 business days.

In the Transfer method, you will transfer your funds to The Stanbic Money Account with the details below.

Account name: UBA Nom First Trustees IBTC Money Market

Account Number: 1023413552

Bank name: UBA

Narration: Your Money Market account number.

Note that if you choose the Transfer method, you must be mindful of what you put in the Narration. What you should include there is your money market account 10-digit number. Nothing else.

If you make a mistake in this, the money will not reflect in your account. You will have to visit the bank branch to resolve that issue, that is, if the funds does not return back to your account in a few days.

After the funds are transferred successfully, you are required to leave the money dormant for 1-month minimum before withdrawing.

Your capital is safe and secure. If you choose to cancel before 1 month, you will forfeit your earnings and probably pay a penalty fee.

How to withdraw Your Funds

Log into your account, click on Redeem.

→ Note that when you request for funds on or before 12 noon, you will likely receive the funds in your account same day. Any redeem requests made after 12 noon will be processed and received within 2 working days.