As the year runs to an end, this remains the best time to embark on Target Savings for projects next year.
This month is the best time for planning to ensure you have a seamless savings within the savings period.
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.
Alex, a customer experience executive in a fintech company in Lagos, said he had been planning for years to travel and go on a sightseeing holiday but has not been able to do so until this year. This, he said, was made possible when he decided to start a target savings and plan towards his goal.
He had opened a target savings account with his bank to set aside a certain percentage of his salary and had met his financial goal before the end of the year allowing him to spend freely during his trip without being worried about his finances.
Also as the year comes to an end, so does the amount of spendings for the festivities increase as many would love to celebrate the end of the year in style to wind down activities. Family gatherings, office parties and friends get-together especially during festive periods, do not come cheap.
Planning for these functions ahead of time can make it easier on the purse. 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, 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.
