What tenor means
Tenor is simply how long your money stays locked in a fixed plan — 30, 90, 180 or 365 days. In exchange for that certainty, the plan pays a higher rate than an everyday account.
A longer tenor is not automatically better. The right tenor is the one that matches when you will actually need the money.
Rate vs effective yield
The headline rate (say 18.2% p.a.) is annualised. For a shorter plan, you earn that rate only for the days your money is invested. On a 90-day plan, ₦100,000 at an illustrative 18.2% earns about ₦4,488 — ₦100,000 × 18.2% × 90/365.
Effective yield asks a different question: if you keep reinvesting the proceeds at the same rate all year, what do you actually end up with? Rolling over a matured plan keeps your money compounding instead of sitting idle between plans.
Why a shorter plan can out-earn a longer one
Rates change. If you lock a 365-day plan and rates rise in the meantime, you miss the better rate. A 90-day plan matures sooner and lets you reinvest at the new, higher rate.
The reverse is also true: if rates fall, a long plan keeps your old, better rate for the full tenor. That is the trade-off tenor buys you — certainty versus flexibility.
What this means in practice
Before subscribing, ask when you need the money. If the answer is 'not for a year', a 365-day plan locks today's rate. If it is 'maybe in three months', keep the money flexible in the Call Account or use a shorter plan.
Put it into practice
Open a Kipit account and start with as little as ₦1,000. Rates shown in guides are illustrative — the app shows the live rate before you commit.
