Meeting Financial Needs With Target Savings In 2023

With access to credit still an issue in the country, getting funding for certain needs still remain a challenge and friends and family may not be able to come through every time.

Planning for certain spendings such as rent, school fees, travel expenses, starting a business, buying a car or even the latest Xbox can sometimes be a challenge.

While many may want to use the rising inflation in the country as an  excuse so as not to save, saving requires discipline and a resolve to reach a target. As the year runs into the second month, it is not too late to start saving towards a goal.

Saving towards a goal helps you to be able to plan your life adequately and reduce stress. Planning for exigencies and spendings ahead of time can make it easier on the purse. This was one of the essence of piggybanks. Piggybanks do not offer interest on savings but with technology, one can now have a digital piggybank to save towards a goal whilst earning interest.

This is one of the several uses of the various target savings account created by banks as well as some financial technology institutions. Target savings accounts are a type of product offered by financial institutions like commercial banks, as well as financial technology companies, (fintechs).

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 either daily, weekly or monthly such that 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 one per cent to 7 per cent per annum.