Earning monthly interest

BLIXEMPIE

BLIXEMPIE

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When it comes to earning interest I'm a complete noob and forgot everything regarding this I learned in school.

Let's say I have R30000. I'm with Capitec Bank and I'm supposed to earn 4,75% interest. Is this interest paid out monthly? I.e. Do I get 4,75% of R30000, which adds up to R1425, paid out to me monthly, or how does it work?

If not Capitec, is there any other institution where I can earn monthly interest on R30000+?
 
4.75% per year

So R1425/12 monthly.


(R30,000 x 0.0475 / 12) = R118.75

then next month

(R30,118.75 x 0.0475 / 12) = R119.22
 
Last edited:
If interest worked like that we'd all be rich...

You earn 4.75% interest PER YEAR, not per month. Letting money sit in a savings account - unless we're talking a couple of bar - is not going to get you any worthwhile returns. You need to invest money properly.
 
I might be wrong, but I think that Capitec caps the amount that you can earn interest on (something like R9,000)?
 
HapticSimian said:
If interest worked like that we'd all be rich...

You earn 4.75% interest PER YEAR, not per month. Letting money sit in a savings account - unless we're talking a couple of bar - is not going to get you any worthwhile returns. You need to invest money properly.
Click to expand...

What do you suggest?
 
Mike Hoxbig said:
I might be wrong, but I think that Capitec caps the amount that you can earn interest on (something like R9,000)?
Click to expand...

You are wrong indeed :p

They just have a cap (R9 999) above which you earned a lower rate. Was 6% and then 4.75% if account was above R9 999, now its 5% and then 4.75% if account is above R9 999.
 
I'm thinking now... what about a credit card? Won't I earn more interest if I put money into a credit card account? How would that even work?
 
BLIXEMPIE said:
I'm thinking now... what about a credit card? Won't I earn more interest if I put money into a credit card account? How would that even work?
Click to expand...

Nope... thats the interest rate they charge you for owing them money. (its one way - if they give you interest for a credit balance, it'll be very low)
 
BLIXEMPIE said:
Ugh. R100 interest on R30k. Pffft. I'm just gonna spend it then. :p
Click to expand...

Well - over 20 years:
1 : 31456.43
2 : 32983.57
3 : 34584.86
4 : 36263.88
5 : 38024.41
6 : 39870.42
7 : 41806.04
8 : 43835.64
9 : 45963.77
10 : 48195.21
11 : 50534.99
12 : 52988.35
13 : 55560.83
14 : 58258.19
15 : 61086.5
16 : 64052.12
17 : 67161.71
18 : 70422.27
19 : 73841.12
20 : 77425.95
 
xrapidx said:
Well - over 20 years:
1 : 31456.43
2 : 32983.57
3 : 34584.86
4 : 36263.88
5 : 38024.41
6 : 39870.42
7 : 41806.04
8 : 43835.64
9 : 45963.77
10 : 48195.21
11 : 50534.99
12 : 52988.35
13 : 55560.83
14 : 58258.19
15 : 61086.5
16 : 64052.12
17 : 67161.71
18 : 70422.27
19 : 73841.12
20 : 77425.95
Click to expand...

Inflation will erode that final amount like the grand canyon was eroded.

Now do that calculation with a Satrix Divi type 20%pa return.
 
It won't really erode it ... it'll still be R77,425.95 ;)

But I understand what you saying :P

Satrix have a 20%pa return?
 
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