Best interest on credit.

[Pitbull]

Hi Guys

I was thinking of dumping R 200k into my Credit card with Virgin money.
This is at 8.5% interest. Thing is I need the money to be available still from day to day meaning no Fixed account. And would like the best return on it.

Do you guys know of any better interest rates offered, and if so where ?

[BobbyMac]

Why not take half in a high yielding interest account (a 21 day fixed deposit is a good choice perhaps) and put the other half on the credit card. Putting it on the card will give you great benefits at the bank as well, and the 21 day notice will give you slower access to the money while earning a higher interest rate.

[Pitbull]

Why not take half in a high yielding interest account (a 21 day fixed deposit is a good choice perhaps) and put the other half on the credit card. Putting it on the card will give you great benefits at the bank as well, and the 21 day notice will give you slower access to the money while earning a higher interest rate.

I like the idea.

Do you have the interest rate of these month to month fixed accounts ?

[Crusader]

You could try the money market accounts from the various banks. On such a large amount you should be able to get 9+% while still having immediate access to the money.

[BobbyMac]

I'm getting 10.75% Nominal in a 32 day notice (around 11.3% effective per annum). Most places will give you between 9 and 10.5% on 100k though. I use Investec by the way.

[Pitbull]

Ok let me explain what I want to do.

I just want to live my life as normal from day to day. I want the money available for it the cars break, of if I run short on my salary the last week of the month and so forth. With that in mind I still want to milk the R 200k for as much interest I can.

Should also put me in a very good light with the NCA with a current balance of R 200k

[cyberarmy]

I'm getting 10.75% Nominal in a 32 day notice (around 11.3% effective per annum). Most places will give you between 9 and 10.5% on 100k though. I use Investec by the way.

What's the minimum you have to put in?

[superB]

You could try GoBanking then..

http://www.gobanking.co.za/content/our_go_account_rates.asp?activeButton=1

Normal bank account with pretty good interest rates AFAIK.

[Dolby]

Beat me to it, SuperB ;)

[Viper25]

As far as i know... Absa's money market and Absa's Advantage product offers the best return on investment from the big 4.... And you have access to your money 24/7 via any atm...
There might be a daily limit on the withdrawal amount via an ATM though..
Theres no limit if you go into the bank to withdraw money...

[Pitbull]

You could try GoBanking then..

http://www.gobanking.co.za/content/our_go_account_rates.asp?activeButton=1

Normal bank account with pretty good interest rates AFAIK.


Beat me to it, SuperB ;)

Wow not to bad


New Rates (Valid from 13 February 2008) Balance Annual rate Effective rate
1 - 4 999 4.50% 4.59%
5 000 - 9 999 5.00% 5.12%
10 000 - 19 999 7.70% 7.98%
20 000 - 99 999 9.50% 9.92%
100 000 + 499 999 9.75% 10.20%
500 000 + 10.00% 10.47%
Please note: The effective rate is the percentage interest you will earn, provided you leave your money (including the monthly interest thereon) in the account for a full 12 months.

The above new interest rates are effective from 13 February 2008, but are subject to change without notification. Should you require any further information, please contact the Go Banking Client Care Centre on 0860 654 222.

[BobbyMac]

Ok let me explain what I want to do.

I just want to live my life as normal from day to day. I want the money available for it the cars break, of if I run short on my salary the last week of the month and so forth. With that in mind I still want to milk the R 200k for as much interest I can.

Should also put me in a very good light with the NCA with a current balance of R 200k

In that case, go with a mix: something like 50k on the credit card (the interest is not as good, but you will be surprised how your perks go up with the bank), 50 k in a medium term investment (a medium term moneymarket account is usually a nice option) and 100k in a 32 day notice account. That way you've spread it and will get good interest rewards back, and have card access to money if the ***** hits the fan.

[BobbyMac]

What's the minimum you have to put in?
R50k in the Investec 32 day notice.

Edit: found a nice breakdown: http://www.investec.com/SouthAfrica/PrivateBank/Banking/CashInvestments/CashInvestmentRates/

[Pitbull]

In that case, go with a mix: something like 50k on the credit card (the interest is not as good, but you will be surprised how your perks go up with the bank), 50 k in a medium term investment (a medium term moneymarket account is usually a nice option) and 100k in a 32 day notice account. That way you've spread it and will get good interest rewards back, and have card access to money if the ***** hits the fan.

That is what I want ;)

Sounds like an awesome plan

[lcbxx]

Pitbull, VMoney Credit card's are hard to beat with the positive balance interest. The money is available immediately - with any other investment plan you have to give some sort of notice.

[Pitbull]

Pitbull, VMoney Credit card's are hard to beat with the positive balance interest. The money is available immediately - with any other investment plan you have to give some sort of notice.

Ok let me think

8.5% per annum gives me R 1416.67 per month interest
10.2% per annum gives me R 1700.00 per month interest

Hard choice hey :p

I'll chuck some change into the credit card, but till they come to the party I think I like 10.2% more. Maybe I should go and ask for beter interest at VM. Do you guys think it's possible ?

[lcbxx]

Ok let me think

8.5% per annum gives me R 1416.67 per month interest
10.2% per annum gives me R 1700.00 per month interest

Hard choice hey :p

I'll chuck some change into the credit card, but till they come to the party I think I like 10.2% more. Maybe I should go and ask for beter interest at VM. Do you guys think it's possible ?
Perhaps I'm reading the T&C wrong on the GoBanking page, but the 10.2% only applies of on the money and the interest if it stays there for a full 12 months.

VMoney doesn't care. It's 8.5% divided by 12 every month on the current balance and not the average balance throughout the month. There is no annual fee, nor is there a transaction fee when you use the card.

[Mask]

ABSA Investment Advantage...works for me. Good interest and available like a normal bank or Money Market account...

[Pitbull]

Perhaps I'm reading the T&C wrong on the GoBanking page, but the 10.2% only applies of on the money and the interest if it stays there for a full 12 months.

VMoney doesn't care. It's 8.5% divided by 12 every month on the current balance and not the average balance throughout the month. There is no annual fee, nor is there a transaction fee when you use the card.

I'm not planning on spending the money. But use the interrest mainly if needed. So 10.2% shounds right even if it's based on 12 months total.

Still think I can push VM for a 10% on a R 200k credit :cool:

[lcbxx]

I'm not planning on spending the money. But use the interrest mainly if needed. So 10.2% shounds right even if it's based on 12 months total.

Still think I can push VM for a 10% on a R 200k credit :cool:
Nah you won't. R2 or R200K, 8.5% you get.

[Pitbull]

Nah you won't. R2 or R200K, 8.5% you get.

Then they don't want my money, simple as that :D

[lcbxx]

Then they don't want my money, simple as that :D
In that case, why not invest it with a small investment company (below R10mil market investments).
I can recommend New-e-Conomy (http://www.new-e-con.com/cms/). They are in the top 5 in the Sharpe-ratio investments returns report.

[supersunbird]

Capitec have 10% interest rate on positive balances on their debitcard account one account type thing. No internet banking though. I'm gonna go for a VM CC and Capitec mix myself...

[LancelotSA]

Something interesting for you to read....

http://www.persfin.co.za/index.php?fSectionId=596&fSetId=337&fArticleId=4282191

I see a lot of interest rates being thrown around here and I can't help thinking it is important to bear in mind that this is what the bank is offering you now... if the repo rate were to go down, so would these rates. But in saying that I do not think we have much chance of this happening until at least the end of the year.