I’m a fan of anything that makes money management simpler and easier and Target Savings accounts fit the bill on both counts – simple and easy – especially when you throw automation into the mix.
No doubt, earning money is difficult yet understanding how money works can be even more so. Between dealing with the inflation of prices of goods and services during a pandemic and the fear of getting laid off or being put on compulsory leave, saving has become an even harder choice to make. Yet, it is crucial to attaining a level of financial security. If you want to build a safety net around you, you must save.
With Target Savings accounts I have been able to pay cash for my last two (used) vehicles, gifted myself the new iPhone12 this new year, and pretty confident about paying my annual rent in two weeks as well as my pre-schooler’s tuition. Needless to say, I have been a fan of Target Savings for a few years and have done it in different traditional ways before I downloaded the V bank app last March and the automation simply blew me away. I will go slowly so that you understand.
So, what is a target savings account?
A Target Savings account is a basic savings account set up for a specific purpose.
Target savings accounts can be used for big-ticket items like vacations, vehicles, or home renovations, or annual expenses that shouldn’t be a surprise but often sneak up on us (house rent, car insurance, Christmas and birthday gifts, or back-to-school shopping).
None of these expenses are surprises, at least they shouldn’t be. We all know they are coming – particularly annual events. As Dave Ramsey says, “Christmas is not a surprise. It arrives every year just like clockwork.” So, a target savings account makes sure you are ready when the time for that event comes.
Why the V Bank Target savings account?
Recall I said I had done target savings traditionally before V? I’ve had some unlucky incidents with rotational group savings as well as one time I tried saving in a long-broken water closet in the guest room. When my wife decided to fix it for some guests arriving, the plumber made away with the money and I didn’t realise until I tried to top up my savings the following month in my closet ‘bank.’ I never got a refund but it was also the last time I lost money. Target Saving on the V bank app is not only easier, simpler but makes me more disciplined and likely to reach my goal.
The V Bank Target account is a saving account specifically designed for individuals to save towards a project or set goal e.g. children’s education, wedding, school fees, vacations, etc. It offers customers the convenience of savings and maximizing their investments, whilst having flexible access to their account at any time.
This feature works by you deciding how much you want to put away for a period of time and setting how frequently you want your account debited to achieve that target goal!
Here is how to create a new account – TARGET SAVINGS ACCOUNT.
Login to the V Bank App is you already have it or download and register if you don’t
Click on the ‘More’ menu (bottom right corner of your screen)
Click on “Open New Account”
Select the “Target Savings Account”
Enter debit amount
Select debit frequency
Select start date
Select account to be debited for the savings (source)
Enter the target description (i.e., the reason for target savings)
Click on Open Account
Review target savings account details
Click on confirm with PIN
Enter your 4-digit V Bank PIN
Receive ‘your savings account has been created successfully’ notification on the app
Receive confirmation SMS/email notification.
And there’s more you can do with your V by VFD mobile app. Click here for more information.