Safelock is a reliable savings feature provided by a renowned Nigerian fintech firm, Piggyvest. It offers a convenient and flexible means of saving money with interest. With Safelock, users can earn attractive interest rates by locking up their funds for a specified duration, usually ranging from 10 to 60 days. The more extended the lockup period, the higher the interest rate accrued.

This guide aims to provide a detailed explanation of how to withdraw funds from PiggyVest’s Safelock before the maturity date. Although it’s best to keep the funds in Safelock until the due date for maximum earnings, there may be circumstances that require early withdrawal.

This article will walk you through the process of making an early withdrawal and important factors to consider.

What Are the Benefits of PiggyVest’s SafeLock?

Safelock offers several benefits, which include higher interest rates than traditional savings accounts, flexibility to choose the duration of their savings plan, secured and insured funds by the Nigerian SEC and NDIC.

However, there are penalties for withdrawing funds before the maturity date.

Are There Conditions To Be Met For Withdrawal Before Maturity Date?

To initiate an early withdrawal from PiggyVest Safelock, users must meet the following conditions:

• A minimum of 50% of the interest earned will be forfeited as a penalty for early withdrawal.
• Only funds that have been in Safelock for at least 10 days can be withdrawn early.
• The withdrawn funds will be subject to the prevailing interest rate for savings accounts on PiggyVest.
• Only the funds available in the user’s PiggyVest wallet can be withdrawn early.

Reasons Why Users Might Need to Make an Early Withdrawal

There may be situations where an individual needs to make an early withdrawal from their Safelock account.

1. Unforeseeable situations are inevitable in life, and emergency expenses can crop up unexpectedly. Should an individual encounter a crisis, for instance, a medical bill or a vehicle repair cost, they might have to access their Safelock account to cover the expenses.
2. At times, events that are beyond an individual’s power may occur, forcing them to withdraw their savings sooner than anticipated. For instance, an abrupt termination of employment or a family crisis could compel someone to make an early withdrawal from their Safelock account.
3. A person may have initially intended to retain their savings in Safelock for a certain duration, but a shift in their financial priorities may have occurred. They could require withdrawing their funds to finance other obligations, such as settling debts or seizing a new investment opportunity.
4. In the event that an individual encounters an unforeseen rise in their expenses that surpasses their initial projections, they may find themselves in a situation where they need to withdraw funds from their Safelock account in order to fulfill their financial obligations.
5. Though the primary objective of Safelock is to promote saving, there may be circumstances where it is financially advantageous to withdraw funds ahead of schedule to seize a lucrative investment opportunity. This is due to the concept of opportunity costs, where the potential benefits foregone by not taking advantage of an investment opportunity must be taken into account.

How does SafeLock differ from Target Savings?

The creation of Piggyvest was largely driven by the Safelock feature, which has become one of its most popular functionalities. With Safelock, users are able to regulate their spending habits and prevent overspending.

By locking up their savings, the feature is designed to deter individuals from accessing their funds on impulse. The name Safelock is quite fitting, as it provides a secure way to manage finances and resist the urge to make unnecessary withdrawals.

The primary distinguishing factor between the SafeLock and a conventional savings plan is the initiation process. Once a specified amount of money is deposited, the SafeLock is activated, setting it apart from the regular savings plan.

Multiple SafeLocks can be initiated and run concurrently, alongside the standard savings plan.

On the other hand, the Target savings plan functions as an ongoing form of savings that does not involve locking funds. Users can keep adding to their savings until a specific target amount is reached, which can then be withdrawn at the appropriate time.

It is common for people to set financial goals for various purposes such as saving up for a holiday, a wedding, rent, or a car purchase. Often, individuals have multiple goals they are actively working towards simultaneously.

However, it is important to understand the differences between these goals to avoid confusion and prevent premature withdrawals. Without proper knowledge, individuals may treat these goals interchangeably, leading to premature withdrawals before the set maturity date. Therefore, it is crucial to understand each goal’s specific purpose and requirements to effectively manage and achieve them.

How to Withdraw from PiggyVest’s Safelock

1. Log in to your PiggyVest account by visiting the official website or opening the mobile app.
2. Once you are logged in, click on the Safelock tab to view your active Safelock accounts.
3. Select the Safelock account from which you want to withdraw funds before the maturity date.
4. Click on the Withdraw button next to the selected account.
5. Enter the amount you want to withdraw and confirm the transaction.
6. The amount you can withdraw from your Safelock account depends on the type of Safelock plan you chose and the duration of the plan. PiggyVest charges a fee of 2.5% on the interest earned for early withdrawals.
7. After confirming the transaction, the amount you requested to withdraw will be deducted from your Safelock account balance.
8. The withdrawn amount will be transferred to your Flex account, which is the primary account linked to your PiggyVest account.
9. From there, you can either withdraw the money to your bank account or use it for other PiggyVest products and services.

How to Safelock Funds on Piggyvest

Follow this process to safelock funds on Piggyvest:

1. First, you will need to sign up for a Piggyvest account if you haven’t already. You can do this by visiting the Piggyvest website or by downloading the mobile app from your app store.
2. Once you have created an account, log in and navigate to the Save section of the app or website.
3. In the Save section, you will see several options for saving your money. Select the Safelock option.
4. Next, you will be prompted to enter the amount of money you wish to safelock. Enter the amount and select the duration for which you wish to lock your funds.
5. Piggyvest offers different lock periods, ranging from 10 days to 1 year. Select the duration that best suits your needs.
6. After selecting your lock duration, you will be asked to confirm your selection. Review the details carefully to ensure that you have selected the correct lock period and amount.
7. If everything is in order, confirm your safelock by clicking the Lock Funds button.
8. Piggyvest will then debit the selected amount from your Piggyvest wallet and lock it in a savings plan for the selected duration. During this period, you will not be able to access your funds until the lock period ended.
9. After the lock period has ended, your funds will be released back to your Piggyvest wallet, along with any interest that has accrued over the lock period.

Remember that safelocking is a great way to save money and earn interest, but you should only lock funds that you won’t need to access for the duration of the lock period.

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• The Ultimate Guide to Saving and Investing Money on PiggyVest

Frequently Asked Questions (FAQs)

Can I Have More Than one SafeLock?

It is possible to have multiple SafeLocks and assign different names or purposes to them. For instance, you could have a SafeLock designated for your fees, another for your wedding, another for your birthday, and yet another for your vacation expenses. Each of these SafeLocks serves a specific purpose and can be named accordingly.

Is the SafeLock Differ From The Normal Savings Plan?

Your SafeLock is not your typical savings plan, as it operates independently of it. Once you initiate a SafeLock for a specific amount of money, your regular savings plan continues unaffected. You have complete control over your SafeLock, from determining its pace and duration to every other aspect of its operation.

Can I Add More Funds To My SafeLock?

If you wish to add more funds to an existing SafeLock, it’s possible, provided that the locked amount has a duration of at least 90 days. To do this, select the SafeLock in question, click on the Top-up button, and enter the desired amount. It’s important to note that you can only top up your SafeLock with funds from your Piggybank wallet. Additionally, your interest will be prorated and paid based on the number of days remaining.

How Do I Get My SafeLock Paid Back When Time Is Up?

Once your SafeLock reaches maturity, all the funds you’ve put into it will be transferred to your Flex Wallet. However, it’s important to note that you cannot access your funds until the SafeLock has reached maturity. If you decide to close your account entirely, you will have to wait until the funds from your SafeLock have matured before you can liquidate them.

What’s The Maximum Amount I Can Safelock?

You can lock in a maximum amount of N100m per SafeLock.

That’s A Wrap!

Thanks for taking the time to read my article on withdrawing funds from Piggyvest’s SafeLocks. If you have any questions or comments, feel free to leave them in the comment section below. Don’t forget to share this post with your friends on social media and subscribe to this blog for regular updates on savings and personal finance.