Piggy Bank Vs Savings Bank Account: Where Should You Really Keep Your Money?


This battle is an age-long one, and it’s not ending soon. People’s preferences in choosing where to stash their loose cash or actual savings keep switching from end to end due to the different factors involved.

It is also very important to save a good amount of your income. As highlighted before in one of our articles, here’s a very good way to ensure that you save money. In this article, we will look at popular questions like what is a piggy bank? What is a bank savings account? Which is better between a piggy bank and a bank savings account? How does my choice between piggy bank and bank savings account affect my savings culture? …and so on.

First we need to define the major terms here:

What is a Piggy Bank?

A piggy bank is a traditional physical (wooden) money box used to store loose coins and notes at home in a bid to save it up instead of spending the money on immediate things.

It’s called ‘piggy bank’ because the earliest type of these money boxes were shaped like pig heads. This method of saving is most effective and common with children.

What is a Bank Savings Account?

A bank savings account is an interest-bearing deposit account held in a bank or any other financial institution. A typical savings account in Nigeria requires that withdrawals are not done more than thrice within a month to earn interest.

Piggy Bank and a Bank Savings Account Compared

Like I stated before, none of these two great savings methods is better or worse than the other. You can only make your choice based on your own personality and realities.

Here, I am going to state the highlights of the use of the piggy bank and bank savings accounts. Then, you can say for yourself which one best suits you.


Interest rates are percentages paid on your deposit with the bank, a form of reward prorated with your deposit volume and the time that you’ve left the deposit there.

Recently, the CBN pegged the savings account interest rates at N1.25% but some banks have gone a step further to offer more in bids to entice their customers to keep more money with them.

Bank deposit pays interest while your wooden piggy bank in the corner of your room obviously does not.


To deposit loose change into the belly of the wooden piggy bank in your room, all you need to do is stuff the cash or coin into the cut area. At least, much easier than going to a bank to fill a deposit form, join a queue just to deposit your cash into your bank account.

It is as obvious as day, throwing money into your piggy bank box is way easier than going to the bank to make your deposit.


All customer deposits in commercial banks and financial institutions in Nigeria are insured by the Nigeria Deposit Insurance Corporation (NDIC). The safety of your money lying in the bank is almost foolproof.

However, the safety of the wooden piggy bank box in your house can be broken into while you’re not around and all your savings carted away.


Savings game is a delicate one, one that has a lot to do with timing. If you must save a Naira note/coin, you must do away with it quickly to prevent ‘temptations’ like using the money to buy unnecessary items that were not budgeted for ab initio.

The piggy bank is mostly accessible to its user than a bank savings account that you have to

How does my method of savings affect my savings culture?

Due to the uniqueness of people’s situations, there is no one great method to the question above. Some people prioritize their discipline and convenience over interest and value, and vice versa.

However, you must take a good look at yourself and choose the method that best suits you as a working individual, a student, market person, petty trader, business person and so on.

In my opinion, every low/mid income earner should have a strong, typical wooden piggy bank in a secret corner in their homes for all the loose money they carry around. This, however, should not mean we cannot also have a good amount of savings in our bank accounts as well.


Truth is, most of the twenty naira, fifty naira, five hundred naira that hang loosely around us end up being used to purchase petty things that we don’t even need. To save your money and yourself, it’s best you get a more accessible and simple way to save.

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