Why you need a Savings account

Posted by Felix Okoli on Sunday June 15, 2014 at 14:39:15:

A savings account is the easiest type of bank account anybody can operate. Opening a savings account does not require too many formalities as you can create the account the same day and the minimum balance is usually small. Some Nigerian bank accepts as low as N1, 000 to open a savings account.

To open a Normal Savings account, you need 2 passports, an ID card; it can be an International Passport, a driver’s licence, or a National Identity Card, finally, you need a recent Utility Bill to confirm your address. With the recent innovation in Nigeria's banking industry, more people have been encouraged to open savings account even without an id card or proof of address but just a passport photo and initial deposit.

Just walk into any bank you want to create the account with, visit the Customer Care stand, tell the Customer Care Officer that you want you want to open a Savings account, He or She will give you a form to fill. After that, you will be asked to wait a little for them to process your account and give your account number. You will be asked to come at a later date to pick your debit card and your withdrawal slip.

Let’s look at some of the reasons why you need a saving account;

- To Encourage Saving Habit: The main aim of a Savings account is to encourage People to save their money and to avoid over spending. With a Savings account, you can save a little chunk of your monthly earnings, while it will accumulate as time goes on.

- For the Rainy Days: People save for the rainy days, rainy days here means for in the case of an emergency. Having a Savings account gives you something to fall back to in case you encounter a mishap

- To secure your money: Some people who save money at home or office might feel a bit uncomfortable since it might not have sufficient security around it unlike if it was kept in a billion Naira institution like the banks. So the banks are safer than at home or office which can be robbed. Banks hardly get robbed and even when they do, one's savings is still secured by the Insurance company.