Are you interested in opening a savings account and you want to know the features, criteria and the maximum amount a savings account can hold in Nigeria? if so, then this article is for you.
It is pertinent to know that there is just so much money a savings account can hold. So if you are looking to own a saving account, making enquiries to know how much you can save in it is important.
So in this article, we will be telling you all you need to know about a savings account including what you stand to gain from owning one.
What is a savings account?
A savings account is a bank account which one opens for the sole purpose of saving their money. With a savings account, the money deposited will earn some interest on your balance.
Actually, when a savings account holder deposits his/her money in their savings account, what they are really doing is making a loan to the bank.
The bank will use these saved funds to make investments and to lend to its other customers.
Some of the returns from its investing and lending will be used to pay you, their customer, as interest. Then the ramining is used to pay its operating costs.
However, the interest you get is determined by the amount you have deposited in the account and certain conditions like maximum withdrawals made in a month. For example, for some banks, some savings account are not supposed to withdraw more than two to three times to enjoy the interest rate for that month.
Therefore, it will not be wrong to say that a savings account is arguably, the best choice for an individual who earns a regular income and wants to save.
Moreover, it is ideal for SMEs who can consider it an option to save their profits.
Also, those who want to save up for their wedding expenses, vacations, or even want to purchase a house or a car could take advantage of the savings account to help them bring their dreams into reality.
It is not just about opening a savings account, there are so many things one should know before opening a savings account. Just keep reading to know these things.
What are the features of a savings account?
Just as we have mentioned earlier, a savings account is meant to help people save their money while earning interest. But there is so much more you need to know about a savings account before opening one.
Here are some of the features of a savings account
- A savings account holder has no restriction whatsoever as to when he/she pleases to make deposits into their savings account. The individual can easily make their deposits whenever they wish.
- Both individuals and cooperate bodies are eligible to own a savings account.
- There is a minimum amount a savings account is meant to hold. That is as much as an account holder withdraws his/her money, they should leave a certain balance to in it to still qualify the account as a savings account.
- Just as there is a minimum amount a savings account can hold, there is also a maximum amount a savings account can hold.
- Holders and users of savings account are eligible to earn a certain amount of interest from their savings. However, this interest is dependent on the balance on your saving account. Also, interest rates vary with banks — the interest which ranges between 4% to 6%.
What is the Maximum amount a savings account can hold in Nigeria?
The highest amount that can be saved in a savings account varies among banks. That is to say, all the various banks in Nigeria have their stipulated amounts for the maximum amount your savings account with them can carry.
First Bank of Nigeria
The maximum amount a savings account with First Bank of Nigeria can hold is the sum of ₦5, 000,000.
Guarantee Trust Bank
For Guarantee Trust bank popularly known as GT bank, the maximum amount a savings account holder can have in his/her account is ₦5, 000,000.
If you are an intending Zenith Bank savings account holder, then the maximum amount you can save with Zenith bank is ₦5,000,000.
For Access Bank, the highest amount of money you can save in your Access bank savings account is ₦5, 000,000.
Stanbic IBTC Bank
The highest amount a savings account holder with Stanbic IBTC can have in their savings account is ₦2, 000,000.
United Bank of Africa
Those banking with the United Bank of Africa popularly known as UBA can save up to ₦5,000, 000 in their savings account.
Fidelity bank allows its savings account holders to have a maximum of ₦4,000, 000 in their savings account.
First City Monument Bank (FCMB)
Customers who choose the popular FCMB as their preferred bank to save their money will be able to save up to ₦5,000, 000 in their savings account.
The maximum amount a Union bank savings account holder will be able to save is ₦4, 000, 000.
That is the different amounts the popular banks in Nigeria offer for those who wish to open a savings account with them.
How to increase your savings account limit in Nigeria
If you wish to save more than these amounts as listed above, then an upgrade can be done.
The upgrade is a feature that allows the customers to upgrade their accounts and increase the maximum amount their savings account can hold.
All you need to do is make inquiries from your bank about their savings account upgrading service and follow the guidelines that will be provided.
Simply visit any branch you bank with and approach the customer care section to let them know you wish to increase your savings account limits.
Moreover, you can transfer the funds to a current account if you have reached the highest amount and still wish to add more money to your savings.
Also, one thing you should enquire from your bank is their interest rates. This is because these different banks have different interest rates — generally, their interest rates range from 4%-6% — depends on the bank.
We hope this article will be helpful and will give you a guide when choosing a bank to open a savings account with.
In conclusion, what one should be looking out for when choosing a bank to save with is the maximum amount you want to save, their interest rate and the number of times you can withdraw in a month. Also, If you have a large balance to deposit in a savings account, you should look for an account that pays a lot of interest.