Everything You Need to Know About Thrift Contribution: Myths and Facts

Thrift Contribution is a savings and credit scheme that could be in the form of a daily, weekly, or monthly contribution where an individual saves with the goal of being open to a credit opportunity when in need of one. 

You might have heard some common misconceptions about thrift contributions. There are so many myths and rumors floating around out there, that it can be hard to know what’s true and what’s not. 

You may also have some questions about thrift contribution- like how it works, what the benefits are, and what to watch out for. In this article, we’ll dispel the myths and give you the facts about thrift contributions so you can make an informed decision about whether it’s right for you.

Myth: My Thrift contribution does not earn interest.

Fact: Your thrift contribution earns an attractive interest and yields better returns. In AjoMoney, your thrift contribution attracts up to 12% p.a. Traditional thrift contributions as we know don’t yield such return, but from the AjoMoney framework, it does even with the inclusion of credit access.

Myth: Only the rich can afford a thrift scheme 

Fact: This is not true. You can join a thrift contribution scheme with the little you have. There’s a plan for every income range in AjoMoney. Don’t hold back because of this myth. With AjoMoney, you can begin with a minimum of ₦200, remember that every little penny counts, so start now!

Myth: There is no security of Funds

Fact: Your money is guaranteed 100% safe with NO limit to the amount of your contributions that can be covered in the event of loss from flood, fire, and other disasters. AjoMoney is a product of AjoPay Multipurpose Cooperative Society Limited and registered under the Nigeria Corporate Affairs Commission and in partnership with financial institutions licensed by the Central Bank of Nigeria through which all funds are NDIC insured, so your money is secured.

Myth: There are no added benefits

Fact: Saving in your thrift plan with AjoMoney consistently gives you access to micro-credits. The only requirement is that you save consistently and meet up with your saving schedule. As a business owner or SMEs most especially, if you are saving ₦2000 daily consistently and set to withdraw ₦60,000 after 30 days, AjoMoney can offer you a micro-credit of an additional ₦40,000 making it a total collection of ₦100,000. Remember, you pack a bag at zero interest.

Myth: It is difficult to withdraw large amounts from thrift contributions

Fact: There are no issues attached to withdrawing your money saved when your savings cycle (this is can vary from 7 days to 6 months) is due. If for example, you subscribed to a thrift package on AjoMoney and you are set for collection, all you have to do is initiate withdrawal from AjoMoney and your fund will be moved to your AjoWallet on the AjoMoney app.

Myth: I have to have a lot of money before I can subscribe to thrift savings.

Fact: You can start with whatever amount you are comfortable with and increase your contributions as time goes on. AjoMoney thrift contribution plans are flexible and allow you to switch plans at any time according to your savings capacity.

Conclusion

Knowing all of these will help you make the most of your savings and get the biggest bang for your buck! Thrift contribution goes beyond the regular savings of only expecting interest at the end of the month. So if you’re looking for a way to save for the future or build your wealth steadily, a thrift contribution may be the right choice for you.