Our Twitter handle @SafeInvestingSA asked a question:
"Do all banks have an interest bearing 24-hour or 1 day notice account that requires an initial investment amount of below R1000. Our #SavingCommunitySA needs that or similar for individuals."
"We have a savings plan as an addition to our Global One savings account however there is no 1 day notice. You can get the funds immediately in emergencies".Having checked the Global One account we agree that it is indeed a good interest bearing emergency fund account. At the point of writing this article Global One would get one a transaction account and four free savings plans. This works much better if you are the Capitec client as this is linked to the debit or credit card.
Most importantly for us is that this account earns from 5% interest per year on the balances. This is again at the time the article was first published. This is obviously adjusted with changes in the South African interest rates. The account earns 5% for R0 – R24,999 balance, 5.4% for R25 000 – R99 999 and 5.65 for R100 000 and above. Remember that we mostly save R5,000 to R10,000 in our interest bearing emergency fund account. 5% is not a bad interest on an account that has money readily available.
Lets get to the catch. One needs R25 minimum balance and a monthly administration fee of R5. But this is for the main account which you use for your daily banking activities. Hence the savings plan account itself is marketed as free. One may then link the four free savings plans to their main debit account.
I trust that you have started with the savings challenge. We have four steps and groups. 1. Debt pay-up, 2. Emergency Fund, 3. Other Savings Accounts, and 4. Investments. Please do keep moving. Start slow but do not stop. For daily motivation like us on Facebook, Twitter and/ or Instagram.
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