{"id":785606,"date":"2024-08-06T17:30:00","date_gmt":"2024-08-06T15:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=785606"},"modified":"2024-08-06T17:29:13","modified_gmt":"2024-08-06T15:29:13","slug":"what-r10000-gets-you-in-south-africas-major-savings-accounts-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/785606\/what-r10000-gets-you-in-south-africas-major-savings-accounts-2\/","title":{"rendered":"What R10,000 gets you in South Africa\u2019s major savings accounts"},"content":{"rendered":"\n

The challenging economic environment is making it extremely difficult for South Africans to save. <\/p>\n\n\n\n

Amidst high interest rates, several savings accounts are offering strong returns, well above the inflation rate of 5.1% for June. <\/p>\n\n\n\n

Not only are savings useful for building wealth and hedging against inflation, but they are essential in an emergency. <\/p>\n\n\n\n

However, Standard Bank’s data showed that many South Africans with earnings over R25,000 struggle to build emergency cash savings. <\/p>\n\n\n\n

Standard Bank said that 52% of entry-level banking clients have less than one month of their salary saved in immediately accessible cash savings, which can be used in the event of retrenchment or urgent medical procedures.<\/p>\n\n\n\n

The bank said that tough economic conditions and the high cost of living are the primary reasons for this trend. <\/p>\n\n\n\n

Without savings, many are forced to resort to debt, eroding their ability to build wealth over the long term. <\/p>\n\n\n\n

It’s not much better in the higher income bracket, as over a third of individuals earnings between R700,000 and R1 million having no emergency savings at all. <\/p>\n\n\n\n

\u201cThe data shows that the ability to build adequate cash savings for use in an emergency is not only dependent on earning a higher income,\u201d said Doret Jooste, Head of Money Management and Advisory at Standard Bank. <\/p>\n\n\n\n

\u201cHaving cash savings on hand is the cornerstone of healthy money management and likely the most important thing to prioritise when you want to start building your wealth\u201d.<\/p>\n\n\n\n

With this in mind, BuisnessTech has looked at what consumer’s could get back from a savings account when putting away R10,000.<\/p>\n\n\n\n

\n\n\n\n

Fixed Deposit Account<\/strong><\/p>\n\n\n\n

Fixed deposit accounts generally offer the highest monthly interest rates, with periods ranging from 7 days to 60 months and over. <\/p>\n\n\n\n

Banks have their own payout options, but it is common for interest payouts to be provided monthly, every six months, every twelve months, or at maturity. <\/p>\n\n\n\n

We have decided to look at the interest rates for 6 months and 12 months using Investec’s future value calculator.<\/a> Interest is paid<\/span> monthly. Investec does not offer a minimum deposit of R10,000. <\/p>\n\n\n\n

When comparing the results at 9 of South Africa’s biggest banks over 12 months, TymeBank comes out on top, offering an interest rate of 10.0%.<\/p>\n\n\n\n

In last, Standard bank only offers 7.49% in interest over a 12-month period. <\/p>\n\n\n\n

Bank<\/strong><\/td>Minimum Deposit<\/strong><\/td>6-month interest rate<\/strong><\/td>6-month future value<\/strong><\/td>12-month interest rate<\/strong><\/td>12-month future value<\/strong><\/td><\/tr>
TymeBank<\/td>R0<\/td>8.80%<\/td>R10 448.15<\/td>10%<\/td>R 11 047.13<\/td><\/tr>
Africanbank<\/td>R500<\/td>8.80%<\/td>R10 448.15<\/td>9.50%<\/td>R10 992.48<\/td><\/tr>
Absa<\/td>R1 000<\/td>8.35%<\/td>R 10 867.71<\/td>8.75%<\/td>R 10 910.96<\/td><\/tr>
Discovery Bank <\/td>R10 000<\/td>8.25%<\/td>R10 856.92<\/td>8.70%<\/td>R10 905.54<\/td><\/tr>
Capitec<\/td>R10 000<\/td>8.15%<\/td>R 10 414.48<\/td>8.50%<\/td>R 10 883.91<\/td><\/tr>
Nedbank<\/td>R5 000<\/td>7.75%<\/td>R10 803.13<\/td>8.15%<\/td>R 10 846.14<\/td><\/tr>
FNB<\/td>R10 000<\/td>7.70%<\/td>R10 797.76<\/td>8.10%<\/td>R10 840.76<\/td><\/tr>
RMB<\/td>R10 000<\/td>7.70%<\/td>R10 797.76<\/td>8.10%<\/td>R10 840.76<\/td><\/tr>
Standard Bank<\/td>R1 000<\/td>7.48 %<\/td>R10 379.88<\/td>7.49 %<\/td>R10 775.26<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

Notice accounts<\/strong><\/p>\n\n\n\n

Despite offering lower interest rates than traditional fixed deposit accounts, notice accounts allow for quick access to funds if proper notice is given to the bank.<\/p>\n\n\n\n

When compared to the banks that offer 32-day notice accounts that meet the R10,000 requirement, Africanbank came out on top, with an interest rate of 8.50%.<\/p>\n\n\n\n

Standard Bank was again on the other end of the scale at 5.8%. <\/p>\n\n\n\n

Bank<\/strong><\/td>Minimum Deposit<\/strong><\/td>32-day notice, nominal interest rate<\/strong><\/strong><\/td>12-month future value<\/strong><\/td><\/tr>
Africanbank<\/td>R500<\/td>8.50%<\/td>R 10 883.91<\/td><\/tr>
Discovery Bank<\/td>R0<\/td>8.45%<\/td>R10 878.51<\/td><\/tr>
Capitec<\/td>R0<\/td>7.50%<\/td>R 10 776.33<\/td><\/tr>
Nedbank<\/td>R250<\/td>7.45%<\/td>R 10 770.97<\/td><\/tr>
FNB<\/td>R5 000<\/td>7.25%<\/td>R 10 749.58<\/td><\/tr>
RMB<\/td>R5 000<\/td>7.25%<\/td>R 10 749.58<\/td><\/tr>
Absa<\/td>R1 000<\/td>7.15%<\/td>R 10 738.90<\/td><\/tr>
Standard Bank<\/td>R250<\/td>5.80%<\/td>R 10 595.67<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

Immediately accessible savings accounts<\/strong><\/p>\n\n\n\n

FNB had the highest interest rate for immediately accessible savings accounts at 7.05%.<\/p>\n\n\n\n

However, Tymebank’s 7% could rise to 11% if a customer completes ten or more transactions for three consecutive months and gives TymeBank 10 days’ notice before closing their GoalSave account.<\/p>\n\n\n\n

Capitec was the worst performer, offering only 3.0% for immediately accessible savings. <\/p>\n\n\n\n

Bank<\/strong><\/td>Minimum Deposit<\/strong><\/td>Nominal interest rate<\/strong><\/strong><\/td>12-month future value<\/strong><\/td><\/tr>
FNB<\/td>R0<\/td>7.05%<\/td>R 10 728.23<\/td><\/tr>
TymeBank<\/td>R1 000<\/td>7%*<\/td>R10 722.90<\/td><\/tr>
Africanbank<\/td>R500<\/td>6.44%**<\/td>R 10 663.35<\/td><\/tr>
Nedbank<\/td>R1<\/td>6.25%<\/td>R 10 643.22<\/td><\/tr>
Discovery<\/td>R0<\/td>5.75%<\/td>R 10 590.40<\/td><\/tr>
Standard Bank<\/td>R0<\/td>5.5%<\/td>R 10 564.08<\/td><\/tr>
Absa<\/td>R50<\/td>5.2%***<\/td>R 10 532.57<\/td><\/tr>
Capitec<\/td>R30<\/td>3.00%<\/td>R 10 304.16<\/td><\/tr><\/tbody><\/table><\/div>
* Could rise to 11% if certain conditions are met | ** Applicable for 24 months | *** Could rise to 7.1% with digital bonus rate | <\/figcaption><\/figure>\n\n\n\n
\n\n\n\n

Read<\/strong>: Big storm brewing over Eskom price hikes in South Africa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Savings are not only useful in building long-term wealth, but are crucial in an emergency situation. <\/p>\n","protected":false},"author":95,"featured_media":641707,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[29,4762,4883,76,26,1498,1799,2214,499,13455],"class_list":["post-785606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-absa","tag-african-bank","tag-discovery","tag-fnb","tag-headline","tag-investec","tag-nedbank","tag-rmb","tag-standard-bank","tag-tymebank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/785606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=785606"}],"version-history":[{"count":11,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/785606\/revisions"}],"predecessor-version":[{"id":785824,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/785606\/revisions\/785824"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/641707"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=785606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=785606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=785606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}