Best way to save and earn interest

TeeM

New Member
Joined
Aug 2, 2017
Messages
5
I am saving up to pay off my car loan which is R195000 settlement fee currently financed through Wesbank since March 2017 (73 months). Currently I have R41 000 and will have R50000 by the end of the year. I will be saving approximately R8250 per month (Jan 2018-December 2018) on a very tight budget towards this loan and expect a R50000 deposit somewhere in October (Bonus + other things) which i will also use to pay towards this loan.

I would like to know, what is the best way to save this money and get good interest? Which one is the best bank for short term fixed investment?. I recently had a fall out with African bank and don’t want to save there anymore. Also I don’t want to have a fixed deposit of more than 6 months (need some sort of access to the money as I will be living on a very tight budget and have to prepare for anything.
*I would like to know, what is the best way to save this money and get good interest?
 
Last edited:

Scooby_Doo

Executive Member
Joined
Sep 4, 2005
Messages
6,449
Capitec? Although you would need to manage the accounts as I understand the highest interest rate is applied to accounts with a balance of R1 - R9999.

Edit,

Or just pay the bank the money as you get it.
 

TeeM

New Member
Joined
Aug 2, 2017
Messages
5
I am currently saving the money on my capitec account. I never understood this but would i get higher interest if i split the amount into 4 accounts (<9999 each) ? How does it work ?.
 

backstreetboy

Honorary Master
Joined
Jun 15, 2011
Messages
13,969
I am currently saving the money on my capitec account. I never understood this but would i get higher interest if i split the amount into 4 accounts (<9999 each) ? How does it work ?.
That was yonks ago now you need more per account...

0-24 999 = 5.1%
25 000-99 999 = 5.4
 

Eti1

Expert Member
Joined
Feb 26, 2016
Messages
1,830
I am currently saving the money on my capitec account. I never understood this but would i get higher interest if i split the amount into 4 accounts (<9999 each) ? How does it work ?.
Same interest rate in 4 different accounts. But as some above have said, maybe best to just pay off the car asap.
 

marlin178

Expert Member
Joined
Jan 6, 2016
Messages
1,359
Pay off the car as mentioned above.

If you're determined to put the money in a capital guaranteed product - I would look at something like a money market account from the likes of Allan Gray/Investec Asset Management etc.
The funds are available usually within 5 working days max.
Minimum lump sum is usually R50 000 for these types of products but you can sign up with a debit order to open the account and then do a lump sum deposit into the account. You can then cancel the debit order if you wish.
 

Chinmaya

Well-Known Member
Joined
May 9, 2016
Messages
124
If you manage to save 8250 a month, just pay that into the loan account and ask for a capital reduction straigght away. that will reduce your capital as well as future interests every month. If you wait to pay big amount after x amount of time bank is charging you interest for those days which you can never ever offset unless you win lottery
 
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