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Posted by Felix Okoli on Wednesday May 7, 2014 at 14:23:45:

Nowadays, more and more Nigerian banks offer a type of account that allows you to secure your children's future and that would normally include education.

You have brought your child into this world and as a right thinking individual you might be concerned about his/her future and what he/she is going to be. However, you may also concerned that you may not be around for that long or eve if you were, you may not be so financially stable as you currently are. You can plan ahead for this for your sake and that of your children.

A savings education account can be opened for your child and you can save money on their behalf little by little until they reach around 18 years of age.

Ordinarily, in Nigeria, a person under 18 years of age cannot engage in any valid business transaction and this includes opening a savings account with a bank. How then could children have their own savings account? Well, it is through you as their parent while they are under 18 and this can be transferred to them once they reach the legal age.

Assuming you've planned to invest N1m in their future education, you could decide to save N5000 every month for your child out of your income. You will be able to insure their university education by the time they turn 18 with at least N1m if you saved every month for 18 years.

Look at it this way, N5000 saved every month out of your income into your child's account for 17 years would bring a total of N1,020,000 and this is really enough by today's standard for your child to study at the university for a 4 year course.

Many banks in Nigeria offer this type of education savings account and they are normally dedicated for education and opened in the name of your kids. You as a parent would normally be in charge of the account and you can hand it over to them or give an order to the bank to do so by the time they reach the legal age. Some education savings account also allow you to place an order for it to be used even throughout the child's primary, secondary and university education into a school of your choice.

A child education account is a easy way to save money for financing your kid's education for the future. It is better to set aside money little by little so that it doesn't become too much of a burden when your child really needs it.

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Comments:

Comments:
Re: How to secure your child's education through your bank Reply by IFEOMA on Saturday July 19, 2014 at 14:11:19:

WILL THE SAVINGS ATTRACT MONTHLY OR ANUAL INTEREST, IF YES, WHAT IS THE MONTHLY OR ANUAL PERCENTAGE INTEREST RATE

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Re: How to secure your child's education through your bank Reply by Felix Okoli on Saturday July 19, 2014 at 14:11:19:

Ofcourse, all savings account in Nigeria attract interest rate and this is calculated monthly based on an annual interest rate. The interest rate will differ from bank to bank and you should inquire from the bank first.

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Re: How to secure your child's education through your bank Reply by Jabir Muhd Bashir on Saturday April 1, 2017 at 10:13:14:

Too Diffult To Open Through Internet

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