Banks are financial institutions licensed to receive deposits and make loans regulated by the national government or central bank. There are so many types of bank account ranging from a fixed deposit account, current account, savings account,e.t.c and the terms of operation varies. Among these account types, the savings account is a popular kind of account used by most citizens of Nigeria.
Thus, between the subject lies our focus of discussion (savings account) but with a larger focus on UBA savings account and the limit of the accounts.
For clarity purposes, we’ll start by discussing the meaning of a savings account, the possible advantages of using a savings account as well as its disadvantages, its importance, and finally the limit of a savings account with reference to the UBA savings account as a case study.
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What Is A Savings Account
A saving account is a type of account offered by banks and most financial institutions to allow people to deposit money they don’t use for regular expenditures for safe keeping while also earning compound interest on their balance. It’s an account that helps you store money for specific purposes or goals. This account allows individuals to deposit, secure or withdraw money when the needs arise. This account is suitable for people who are salary earners that have a monthly income and wants to save money.
Importance Of A Saving Account
- A Savings account provides a means of safety for your money. It helps to prevent carrying cash around thereby running the risk of losing your money.
- It helps individuals set money aside in order to achieve their financial goals – since it prevents impulse spending of money enabling one to stay on budget.
- Unlike a fixed deposit account where money cannot be withdrawn over a fixed period of time, the saving account has no restrictions whatsoever which enable people to have access to their money and make withdrawal every time they want.
- A Savings account accumulates a small amount of interest usually on a monthly basis but this interest rate is based on the state of the economy.
Advantages Of A Savings Account
- A savings account requires a lower sum of money to open, you could open a saving account for as low as N1,000 but this amount varies in institutions.
- Saving accounts accrue interest over time although the interest rates are quite low, you will still have access to it.
- A savings account is easily accessible which means you can make deposits and withdrawals at any time unlike a fixed deposit account or any long-term investment account.
Disadvantages/ Limitations Of A Saving Account
- Savings account interest rates are quite low when compared to other types of accounts.
- A saving account requires a minimum balance or monthly maintenance fees.
- Due to the fact that the account can easily be accessible, it could make individual forgo their financial budget and be tempted to make withdrawals at any given time.
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UBA As A Case Study
UBA stands for United Bank of Africa and is one of the oldest and leading banks in Nigeria. They have different account types depending on the customer’s preference.
The UBA saving account is a kind of saving account that allows one to save money, the account also comes with an ATM to enable you to make withdrawals at any time with ease.
Requirements To Open A Savings Account
- Two digital passport photographs
- Utility bills Copy – must be within the last 3 months. Letter of introduction by UBA account holder
- Valid id card e.g National identity card, Drivers licenses e.t.c. or company id card.
- An account opening form.
Benefits of UBA Savings Account
- It comes with quarterly interest payment benefits.
- It’s open to both individuals, the private sector, businessmen and women, clubs and associations, sole enterprises, and partnership companies.
- It enables cash transfer from the current account to a savings account
- There is a provision for an ATM card.
- Customers have access to UBA internet and mobile banking.
- It is very easy to open.
- There is a stipulated interest that accrues to customers’ savings.
Types Of UBA Savings Account
There are different types of UBA saving accounts specially designed for different classes and ages. This is to ensure that everyone benefits from various banking services. They include the following.
- UBA Bumper Account
This is a kind of savings account for salary earners, professionals, students, entrepreneurs, and all other individuals. The minimum amount for operation is N5,000.
- Regular Savings Account:
This type of UBA savings account is suitable for everyone and N1,000 is the minimum operating balance.
- UBA kiddies Account
This account is designed for children alone, this type of saving account was created to allow parents to save for their children as soon as they are born.
- UBA Teens Account
As the name implies it’s for teenagers, it helps them inculcate the right saving habits in them.
- UBA NextGen Account
This UBA NextGen is uniquely designed for undergraduate students and NYSC Corp members.
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Benefits of Opening a UBA Savings Account
- You enjoy flexible opening balances and attractive interest rates.
- You could easily manage your money from any of their mobile banking apps.
- You get to enjoy the flexibility of third-party cheque deposits and withdrawals on the account.
- You could bank whenever you want to and you also have access to any of their digital channels, products, and services.
- You have access to make use of a UBA card on ATM, POS, and Online anywhere in the world.
UBA Bank Saving Account Limit
On Account Opening
When it comes to UBA general savings account, there is an unlimited operating balance, this simply means you can deposit any amount you so desire. There is no limit to the amount of cash your account can hold. A savings account was primarily set up to assist people in their saving habits so it resonates with all classes of people, the only limit attached to UBA saving accounts is the transfer, withdrawal, and deposit limits but this only applies to UBA digital banking services. When you conduct your transaction over the counter there is no transaction limit attached to it.
UBA digital banking daily transfer services: In Nigeria, the UBA bank daily transfer limit for POS transfers is N1,000,000, for WEB transfers including mobile banking and internet banking is N500,000, while for ATM transactions the transaction limit is N150,000.
One of the primary purposes of a regular savings account is to help you keep track of your savings. A saving account is easily one of the most convenient kinds of accounts to use, its mode of operation is simple and the cost of maintenance is not cumbersome and any class of person can make use of it.
But to anything good, there’s also a negative aspect. talking about the limitations of the subject in question.
From this article, you can easily deduce and spot the limits or limitations of the UBA savings account which is categorized into two
- Limitations incurred based on account opening. On this ground, there’s no limitation except you want to consider the fact of getting low returns on your savings capital
- Limitations incurred based on transactions – this is usually from the bank limiting you from carrying out transactions on your account.