Over 16 million South Africans have cash in savings accounts, but according to the latest SA Reserve Bank statistics about 42% of this sits in low interest accounts that offer interest rates as low as 1% at Postbank and as high as 10% on a five year fixed deposit at Capitec.
A new, independent price comparison website, MyTreasury.co.za, enables savers to compare options online to ensure they get the highest interest, based on their individual requirements.
The optimiser service is free and provides options based on a few simple questions.
The website’s founders noted that moving money from a call account that offers returns of 3% to a long term fixed deposit with an interest rate of 10% for example, would effectively double your wealth over 10 years.
The MyTreasury.co.za algorithm searches 670 different rates at eight deposit taking institutions:
- Standard Bank
Clients can specify liquidity ranging from one day to five years and amounts from R1,000 to R50 million.
My Treasury was founded by partners Michael Kransdorff, Simon Shear and Daniel Rubenstein.
Economist, Kransdorff, said: “Savings accounts are a great starting point for encouraging smarter wealth management. Just about everyone with an income has a bank account, and by encouraging people to see their ordinary bank accounts as tools for actively growing wealth, we hope to make South Africans more excited about saving. It doesn’t cost you anything to get higher returns on your cash, but you need to know where to look.
“My Treasury considers your personal profile, such as your age, to determine whether you are eligible for a preferential rate,” he said.
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