Anybody signed up with Tymebank?

[zerocool2009]

Why do they ask you to provide it then and don't know when you don't include it?

That is a good question, example, when you complete your medical aid and RA info, it is pre populated

 

[Pansyfaust]

Just putting this out there, but to those who have bonds with an access facility (should be most bonds) you can just dump money in there and effectively "earn" the rate they are currently charging you and it's tax free AND you can get your bucks back at anytime with a day or 2's notice.

If your bond is lower than 9% pa, then you are effectively arbitraging your bond money with your tyme savings at an effective annual rate of ~10.4% (if we assume 9% interest for 12 months and cash out 10 days before month 12 ends, +interest earned X0.1111)

 

[blunt]

If your bond is lower than 9% pa, then you are effectively arbitraging your bond money with your tyme savings at an effective annual rate of ~10.4% (if we assume 9% interest for 12 months and cash out 10 days before month 12 ends, +interest earned X0.1111)

if the effective annual rate is ~10.4% with tyme (at 9% + 10 days cash out), would it not mean that 100k in tyme would be better than in the access bond if your bond int rate is < 10.4%?

 

[cavedog]

About 1 year later and Telkom still can't debit Tyme Bank accounts. 1 full year you guys can't get 1 provider to debit your accounts.....

@TymeBank

 

[Pansyfaust]

if the effective annual rate is ~10.4% with tyme (at 9% + 10 days cash out), would it not mean that 100k in tyme would be better than in the access bond if your bond int rate is < 10.4%?

I simply used under 9% as a best case scenario. If you have an emergency and need the funds immediately and you only get 9% interest on the funds, you dont get 10%. So if your bond is rate is 10%, but you only earned 9% on Tyme, then you "lost" money. However, if your bond rate is at least lower than 9%, then no matter what happens, you should technically make better interest even if you have to take the cash out quicker at only 9%. I mean, you could stretch it to under ~9.37% (Effective annual interest at 9%), but you'd have to have it in for 12 months...

 

[blunt]

About 1 year later and Telkom still can't debit Tyme Bank accounts. 1 full year you guys can't get 1 provider to debit your accounts.....

@TymeBank

Brave to move your primary account to Tyme. How's it been? Assume you still have a CC/cheque/bond/etc from one of the others?

 

[cavedog]

Brave to move your primary account to Tyme. How's it been? Assume you still have a CC/cheque/bond/etc from one of the others?

Very bumpy start last year November but since it's been just like any other bank. It works fine.

I have my Woolworths credit card that I had for years now as a backup and online payments.

 

[TheJman]

if the effective annual rate is ~10.4% with tyme (at 9% + 10 days cash out), would it not mean that 100k in tyme would be better than in the access bond if your bond int rate is < 10.4%?

It's gets a bit tricky to explain, but if you think of two graphs:

1. First graph is the bond - this graph tends down towards 0 (i.e your payment goal is tending towards full repayment, and obviously making a number of assumptions that no residual etc).
2. Second graph is your savings account, which tends upwards (i.e every year, your money grows on the previous years growth - power of compounding interest).

It's worth preparing a simple model on excel to test out the different profiles of each.

Rule of thumb though is to settle debt as quickly as possible - as you don't know what your circumstances might be in the future - but it's an interesting calculation to run. Just DO NOT FORGET to deduct tax on your interest (if you're in that band).

 

[Ziwa83]

Does anyone know what the minimum amount is to earn interest on Goalsave?

 

[Anthro]

You can 'prime' it with R1

 

[TheJman]

Does anyone know what the minimum amount is to earn interest on Goalsave?

As @Anthro pointed out, there is no minimum, so what a lot of guys do is set up a number of Goal Saves with a R1 balance, and let it "soak" and run until the account hits the 9% interest

 

[zerocool2009]

As @Anthro pointed out, there is no minimum, so what a lot of guys do is set up a number of Goal Saves with a R1 balance, and let it "soak" and run until the account hits the 9% interest

Correct, I opened 10 with R1 each ! Going to pump the full R100k in the first week of Nov (I really cant wait to see the interest added (going up and up and UP)

 

[TheJman]

Correct, I opened 10 with R1 each ! Going to pump the full R100k in the first week of Nov (I really cant wait to see the interest added (going up and up and UP)

Just watch the tax on it... I have't done the calc, but at a certain level, you'll start paying tax at your marginal rate on a portion of the interest

Interest from a South African source earned by any natural person under 65 years of age, up to R23 800 per annum, and persons 65 and older, up to R34 500 per annum, is exempt from income tax

 

[Ziwa83]

As @Anthro pointed out, there is no minimum, so what a lot of guys do is set up a number of Goal Saves with a R1 balance, and let it "soak" and run until the account hits the 9% interest

Okay so it'll stay R1 and still move up to 9%. Perfect!

Correct, I opened 10 with R1 each ! Going to pump the full R100k in the first week of Nov (I really cant wait to see the interest added (going up and up and UP)

That's my plan, I have a few goalsaves but I want to put about 80k in there. Thank you

 

[zerocool2009]

Just watch the tax on it... I have't done the calc, but at a certain level, you'll start paying tax at your marginal rate on a portion of the interest

The max per year for someone under 65 is R23800 I think. I am far from that .......

I am now in a "mode", let my money work for me (from RA's to things like TYME)

 

[TheJman]

The max per year for someone under 65 is R33500 I think. I am far from that .......

I am now in a "mode", let my money work for me (from RA's to things like TYME)

Quick cal shows it's R264,500 x 9% gives you interest of ~R23,800.

So anything over R264,500 in the Goal Saves at 9%, will attract tax at marginal rate

 

[namzsteve]

I am now in a "mode", let my money work for me (from RA's to things like TYME)

If only other people would adopt a mentality like yours. Others just want to spend on shyte, I randomly asked someone I do some work with if he saves money, his answer was if rain days fall he relies on his credit card.
I think Tymebank is trying to make saving fun, once someone sees the growth definitely they'll want to continue on.

 

[backstreetboy]

Quick cal shows it's R264,500 x 9% gives you interest of ~R23,800.

So anything over R264,500 in the Goal Saves at 9%, will attract tax at marginal rate

That's why you can only have max R100k in the GoalSaves...

 

[zerocool2009]

Quick cal shows it's R264,500 x 9% gives you interest of ~R23,800.

So anything over R264,500 in the Goal Saves at 9%, will attract tax at marginal rate

You can only have MAX R100 000 accross all goalsaves ! I totally forgot about that rule ! But hey ... R100 000 @ 9% is a good start

 

[TheJman]

That's why you can only have max R100k in the GoalSaves...

You can only have MAX R100 000 accross all goalsaves ! I totally forgot about that rule ! But hey ... R100 000 @ 9% is a good start

Oh crap!! So it's not R100k in each, it's R100k aggregate over all Goal Saves... damn!

If only other people would adopt a mentality like yours. Others just want to spend on shyte, I randomly asked someone I do some work with if he saves money, his answer was if rain days fall he relies on his credit card.
I think Tymebank is trying to make saving fun, once someone sees the growth definitely they'll want to continue on.

This, although there is another thread going on here that people are telling what their monthly savings are like, and it is really encouraging to see - but A LOT MORE needs to be done to educate people about the importance of saving, even if it is just R100 a month.

The great Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it." I managed to show my domestic the power, and she now has a portion of her salary going into a 32 day call deposit account every month, and we sit every 6 months and I show her how much money she is making every month - think it is sinking in!