A stitch in time saves nine- and so does a savings account! If attaining financial freedom is one of your goals for 2023, then you have one more reason why you should open a savings account today.
Savings accounts may not be the most profitable type of short-term investments, but they are simple, liquid, easily accessible, and a sure path to financial freedom.
How Does a Savings Account Work?
Opening a savings account isn’t as daunting as it used to be. With the right documentation, you can open a savings account today within minutes.
Savings accounts can be opened at a traditional bank, credit union and more recently, online banks.
Having met the requirements, your next step would be to deposit money into the account. The bank then pays you interest on your balance.
You can continue adding money to savings, usually through one or more of these methods, depending on the bank.
Savings accounts offer depositors an Annual Percentage Yield (APY), or simply put, interest rates.
The APY is the interest rate earned on your savings when compounding interest is factored in.
Savings account rates matter when choosing an account to open. Some of the best online savings’ accounts pay several times the national average savings account rate.
Saving money is one of the essential aspects of building wealth and having a secure financial future. Opening a savings account gives you a way out of the uncertainties of life and provides you with an opportunity to enjoy a quality life.
By putting aside, a sum of money in a systematic manner, you can steer your way out of many hurdles and obstacles in life.
Having a savings account can also support you in your hour of need and ensure that your family has something to fall back on in case of an unfortunate event.
Other reasons why saving money is important include.
● Peace of mind
Opening a savings account today is like making a stitch in time saves nine. Having a savings account is like having an insurance policy against life’s unexpected expenses. With a savings account, you can save money for the future without worrying about where the funds will come from if an emergency arises.
Plus, with interest rates on savings accounts often higher than on checking accounts. So you can even make your money work for you while it sits in the bank.
Having a savings account in Nigeria can help you lead a stress-free life with the knowledge that you will not have to struggle if things take an unexpected route.
● Meeting life’s goals
By saving towards a target, you can easily meet a number of your immediate or long-term goals. You can buy a house, accumulate funds for your retirement, purchase a vehicle or take that trip abroad.
● Assured education
There are many types of saving accounts and one of them is an education fund.
With a considerable amount of savings, you can fuel your children’s dreams and pay for the best schools and colleges across the world.
● Secured future
Saving money is an essential part of financial planning for your future. By opening a savings account today, you can ensure that you have the resources you need in case of an emergency or to take advantage of a great opportunity.
As the old adage goes, “A stitch in time saves nine” – and by taking the time to open a savings account now, you can save yourself from potential hardships down the line. Having a savings account also allows you to set aside money for long-term goals. This may be buying a house or starting your own business. Start investing in your future today by opening a savings account – it’s one small step that can make all the difference!
Tips to help you save faster
Have you made up your mind about opening a savings account today? The following steps will guide you through your journey to saving money and maximise your profit.
● Record your expenses
By keeping a daily record of your expenses, you will realise the expenses that are gulping your income. That way, you can prune down unnecessary spending habits; those expenses we incur without realising.
The funds can then be channelled towards meeting your saving goals. You do not need to have large amounts of money. Saving is a habit, a practice that becomes part of your routine.
● Set your objectives
Think of what you want to save for. Know how much it costs and calculate how much you can afford to set aside and how long it will take you to meet the saving goal.
Having a goal makes it easier. By organising yourself and setting a schedule with deadlines, you are bound to meet your saving target faster.
It is not enough to have a savings target. You must learn to make choices to fulfil those targets. By prioritising your savings and exercising discipline, you will be moving in the right direction.
In addition to adhering to strict discipline, automating your deposits ensures that you do not default on meeting your targets.
In some cases, you can use means of payment linked to your bank accounts like your ATM card. Digital banking today makes it possible for you to automate payments into your savings account thereby meeting your target faster.
A nairaCompare guide on how to open a savings account
It’s relatively easy to open a savings account at most traditional and online banks as well as with microfinance banks and other financial institutions.
However, despite the ease, other factors come into play when you decide to open a savings account. For instance, many who still prefer traditional banks may consider proximity.
Others may consider interest rates, deposit requirements, sundry charges and all.
Before you open a savings account today, here is a quick guide to follow.
1. Compare your options
Before you open your account, make sure you’ve chosen the right bank for your needs. Key features when making your choice can include:
● Competitive annual percentage yield (APY)
● Low or no minimum balance requirement
● Low or no monthly fee, or one that’s easy to avoid
● Accessibility of ATMs
● Accessibility of branches
● Availability of online and mobile banking services
If you already have a current account, it’s often easy to open a savings account at the same bank. Still, it’s worth comparing other options to make sure your bank is offering savings account features that are important to you, such as competitive rates. Visit nairaCompare to compare rates and select the savings account that’s perfect for you!
2. Get your required documents
Opening a savings account in Nigeria requires appropriate documentation. However, today, some banks and online platforms have made it so easy that the process can be entirely paperless.
You will need to provide some information about yourself, as well as some documents.
Some of the documents generally requested by financial institutions include:
● Identification, such as a driver’s license or passport
● National Identification Number (NIN)
● Date of birth
● Proof of address in the form of a utility bill
● Proof of employment (usually payment slips or statement of account)
Check with your bank to make sure you have a full list of their requirements as it varies from institution to institution. Make sure to double check these documents before submitting your application. Remember, a stitch in time saves nine.
3. Fill out and submit your application
Naturally, having met the requirements, you are expected to fill out and submit the application to the bank you have chosen.
The process of assigning a bank account to you takes anything from minutes to about 24 hours, thanks to digital banking.
4. Fund your account
You may need to make an initial deposit when starting up a savings account.
Usually, deposits are made either electronically or over the counter. First-time account holders may opt to make deposits by cash.
A stitch in time saves nine. This age-old adage is an important reminder of why it’s so essential to open a savings account today. By taking the time to make small deposits into your savings now, you can avoid financial pitfalls in the future and secure a brighter tomorrow. So don’t wait – open a savings account today and start making those stitches!