Thoughts on saving money with a piggy bank or kolo box

Once again, people are breaking there kolo to find decent sums.

Last year, I thought it was throwing money away in unearned interest. If you put 1,000 into the box daily, you’d have at most 365,000 at the end of the year.

If you were putting the 1,000 into a high yield savings account (10% per annum, compounding daily), you could have additional savings of up to 18,000. Today, rates aren’t that high, maybe you get additional 7,000.

Anyway, I think it’s an interesting practice because it’s lose change that ends up in this box, that you’d probably spend some way or the other. Besides, It’s not like you’d withdraw from your account to put money in your kolo. So, there is perhaps a place for it in the overall scheme of things.

I however think, you don’t need to wait until December to get the cash out. Every month or quarter, get the cash out and let it earn some interest.

Are you using or have you used a piggy bank to save lose cash and what was your experience like?

One thought on “Thoughts on saving money with a piggy bank or kolo box

  1. Hi..i am actually using piggy bank, tho the interest is so low but I feel I eventually lose part of my when I need the money for an emergency fund which I didn’t plan before. And keeping that part of my savings in bank, just makes it easy to spend, since it’s meant for emergency. What do you advise pls? Thanks and I have really been blessed this morning just go through your page.

    Like

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