Monday, December 21, 2020 / 09:50 / Sponsored post by
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Have you planned to save for something important, like school, and you keep planning and planning, but it never works out because 'money quick to enter, money quick to go'? Before you know it, the time you need to use the money is almost here and you have nothing to show for the time. It can be difficult to maintain discipline when you have a target goal to meet and incoming funds are scarce.
Let us assume your rent is N200,000 per year, you would need to save about N16,700 every month or N4,200 every week to meet up with your rent payment in 12 months. When you think about it, saving towards a goal can be extremely challenging, especially when you have other responsibilities coming at you like dust in harmattan. It helps when you find financial products that can help you save and keep you accountable while increasing your savings. So, allow me introduce you to 'Target Savings Accounts'.
Target savings accounts are a type of product offered by financial institutions like commercial banks, it is specifically designed for individuals to save towards a project or set goal over a period. It offers you the option of saving at your convenience and maximizing your investments, while having flexible access to your account at any time.
Target savings accounts allow you to set a debit order to your business or salary account, an automated instruction which credits your target account with your desired amount of money at a set interval e.g., weekly/monthly and you do not have to remember to save. Banks with target savings accounts offer interest rates on the account to encourage a savings culture anywhere from 1 per cent to 7 per cent per annum.
Studies show that 53% of people feel stressed financially when it comes to Christmas. What is supposed to be a time where you can focus on family has started to become a time of worry and financial concerns. Using a target savings account during the holidays can help you put away excess cash, helping you maximise your savings while cutting down unnecessary expenses.