With the cost of living crisis and the economic effects of load shedding having a profound effect on the finances of South Africa, saving is incredibly difficult for many.<\/p>\n
With interest rates on the horizon, consumers could possibly see further stains put onto their finances, making saving incredibly difficult.<\/p>\n
As reported by GQ<\/a>, South Africa has an incredibly poor saving rate – one of the worst in the world.<\/p>\n Rising expenses, such as fuel and food, are also making it harder for South Africans to save.<\/p>\n A BusinessTech poll from this year asked our readers how much of their salary they put into savings each month.<\/p>\n 2,326 of 5,233 (44.45%) respondents said that they did not have any of their monthly earnings put into savings. Another 26.12% of respondents said that they saved 1% to 10% of their monthly salary.<\/p>\n Thus, many South Africans are putting away very little to none of their income into savings.<\/p>\n Barbara O\u2019Neill from Rutgers<\/a> said that putting money away gives consumers a piece of mind when it comes to life’s uncertainties.<\/p>\n However, in a separate BusinessTech poll with nearly 6,000 responses, 44.10% of respondents said that they could not survive an R10,000 emergency.<\/p>\n O’Niell added that once an emergency fund is accounted for, savings can start to provide seed money for other higher-yielding investments, such as bonds or stocks.<\/p>\n South Africa is currently experiencing high inflation, with the annual Consumer Price Index (CPI) showing that inflation was at 7.1% for March 2023 – a 0.1% increase despite many experts predicting a decline.<\/p>\n During periods of inflation, many assume that things will be more expensive than they were previously due to a decrease in purchasing power for the rand. Luckily, banks generally tend to raise interest rates during periods of inflation.<\/p>\n The bank may not pay out the interest quickly, but clients can expect their Annual Percentage Yield to increase with inflation.<\/p>\n South African banks have responded to inflation by offering high-interest rates for their respective savings programs.<\/p>\n BusinessTech looked at how much a consumer could get back from a saving account when putting away R10,000.<\/p>\n Fixed Deposit Account<\/strong><\/p>\n Fixed deposit accounts usually offer the highest monthly interest rates, with periods that range from 7 days to 60 months or more.<\/p>\n Banks differ in their payout options, but it is common for interest payouts to be provided either monthly, six months, 12 months, or at maturity.<\/p>\n Clients who withdraw from their fixed deposit before the prescribed period has concluded will likely receive a proportional penalty fee.<\/p>\n Here’s how much R10,000 would get in the following fixed-deposit accounts:<\/p>\n (Note:<\/strong> All future values are calculated through the Investec future value calculator<\/a> with interest being paid out monthly, NACM – nominal annual compounded monthly. Investec itself does not offer a minimum deposit of R10,000)<\/em><\/p>\n * TymeBank has recently offered fixed deposit accounts. Interest is accrued and compounded daily instead of monthly.<\/p>\n Notice accounts<\/strong><\/p>\n Despite notice accounts offering lower interest rates than traditional fixed deposit accounts, they allow for access to funds quickly if proper notice is given to the bank.<\/p>\n (Note: All interest rates were also based on a balance of R10,000)<\/em><\/p>\n Immediately accessible savings accounts<\/strong><\/p>\n These accounts offer immediate access to funds but have lower interest rates.<\/p>\n (Note: All interest rates were again based on a balance of R10,000)<\/p>\n * Could rise to 10% if the right conditions are met<\/p>\n ** Applicable only for 24 months<\/p>\n
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\n Bank<\/th>\n Minimum deposit<\/th>\n 6-month interest rate (R10,000)<\/th>\n 6 -month future value<\/th>\n 12-month interest rate (R10,000)<\/th>\n 12-month future value<\/th>\n<\/tr>\n \n TymeBank<\/a><\/td>\n R0<\/td>\n 9.00%*<\/td>\n R 10 451.00<\/td>\n 10%*<\/td>\n R 11 000.00<\/td>\n<\/tr>\n \n African Bank<\/a><\/td>\n R500<\/td>\n 8.56%<\/td>\n R 10 435.71<\/td>\n 9.30%<\/td>\n R 10 970.68<\/td>\n<\/tr>\n \n Standard Bank<\/a><\/td>\n R1 000<\/td>\n 8.25%<\/td>\n R 10 380.91<\/td>\n 8.59%<\/td>\n R 10 893.64<\/td>\n<\/tr>\n \n Discovery<\/a><\/td>\n R10,000<\/td>\n 7.95<\/span>%<\/td>\n R 10 404.14<\/td>\n 8.55%<\/td>\n R 10 889.31<\/td>\n<\/tr>\n \n Absa<\/a><\/td>\n R1 000<\/td>\n 7.95%<\/td>\n R 10 404.14<\/td>\n 8.40%<\/td>\n R 10 873.11<\/td>\n<\/tr>\n \n First National Bank<\/a><\/td>\n R10 000<\/td>\n 7.50%<\/td>\n R 10 380.91<\/td>\n 8.25%<\/td>\n R 10 856.92<\/td>\n<\/tr>\n \n Capitec<\/a><\/td>\n R10 000<\/td>\n 7.50%<\/td>\n R 10 380.91<\/td>\n 8.25%<\/td>\n R 10 856.92<\/td>\n<\/tr>\n \n Rand Merchant Bank<\/a><\/td>\n R10 000<\/td>\n 7.50%<\/td>\n R 10 380.91<\/td>\n 8.25%<\/td>\n \n \n Nedbank<\/a><\/td>\n R5 000<\/td>\n 7.65%<\/td>\n R 10 388.65<\/td>\n 8.10%<\/td>\n R 10 840.76<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
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\n Bank<\/th>\n Account name<\/th>\n Minimum deposit<\/th>\n 32-day notice, nominal interest rate<\/th>\n 12-month future value<\/th>\n<\/tr>\n \n African Bank<\/a><\/td>\n Notice Deposits Account<\/td>\n R500<\/td>\n 8.65%<\/td>\n R 10 900.13<\/td>\n<\/tr>\n \n Discovery<\/a><\/td>\n Notice Savings Account<\/td>\n R0<\/td>\n 7.95<\/span>%<\/td>\n R 10 824.62<\/td>\n<\/tr>\n \n First National Bank<\/a><\/td>\n 32-Day Flexi Notice<\/td>\n R5 000<\/td>\n 6.75%<\/td>\n R 10 696.28<\/td>\n<\/tr>\n \n Rand Merchant Bank<\/a><\/td>\n 32-Day Flexi Notice<\/td>\n R 5000<\/td>\n 6.75%<\/td>\n R 10 696.28<\/td>\n<\/tr>\n \n Nedbank<\/a><\/td>\n 32-Day Notice Investment Account<\/td>\n R250<\/td>\n 7.20%<\/td>\n R 10 744.24<\/td>\n<\/tr>\n \n Absa<\/a><\/td>\n Notice Select<\/td>\n R1 000<\/td>\n 6.75%<\/td>\n R 10 696.28<\/td>\n<\/tr>\n \n Standard Bank<\/a><\/td>\n Notice Deposit Account<\/td>\n R250<\/td>\n 5.60%<\/td>\n R 10 574.60<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n
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\n Bank<\/th>\n Account name<\/th>\n Minimum deposit<\/th>\n Nominal interest rate<\/th>\n 12-month future value<\/th>\n<\/tr>\n \n First National Bank<\/a><\/td>\n Savings Account<\/td>\n R0<\/td>\n 6.55%<\/td>\n R 10 675.03<\/td>\n<\/tr>\n \n TymeBank<\/a><\/td>\n GoalSave<\/td>\n R0<\/td>\n 6.00%*<\/strong><\/td>\n R 10 616.78<\/td>\n<\/tr>\n \n African Bank<\/a><\/td>\n Access Accumulator<\/td>\n R500<\/td>\n 5.96%**<\/strong><\/td>\n R 10 609.39<\/td>\n<\/tr>\n \n Standard Bank<\/a><\/td>\n PureSave Account<\/td>\n R0<\/td>\n 5.30 %<\/td>\n R 10 543.07<\/td>\n<\/tr>\n \n Discovery<\/a><\/td>\n Demand Savings Account<\/td>\n R0<\/td>\n 5.10<\/span>%<\/td>\n R 10 522.09<\/td>\n<\/tr>\n \n Nedbank\u00a0<\/a><\/td>\n MyPocket<\/td>\n R1<\/td>\n 5.00%<\/td>\n \n \n Absa<\/a><\/td>\n TrueSave<\/td>\n R50<\/td>\n 4.70%<\/td>\n R 10 480.26<\/td>\n<\/tr>\n \n Capitec<\/a><\/td>\n Transaction and savings<\/td>\n R30<\/td>\n 3.50%<\/td>\n R 10 355.67<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n
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