FNB vs Capitec vs Nedbank for savings pockets

[Fireball]

Hi all!

I'm a very happy Capitec client.
My favorite feature is the multiple savings pockets.
Makes budgeting and saving towards goals that much easier.
Unfortunately they only offer a maximum of four.

Nedbank offers 10, so that seems pretty damn good.
Unfortunately they apparently have a not-too-great app.
Now, that shouldn't be a major problem since I still do all my major banking using ABSA/Capitec.


What I want to know is:
Does FNB still have the multiple savings pockets feature?
I know they have one where your change gets rounded up and squirreled away, but I am specifically looking for something like Capitec's offering where I can have X number of savings accounts, each with a different name.


Any input from you folks? The last post I saw about this was in 2012 and I didn't feel like performing necromancy.

 

[backstreetboy]

Why would you need more then 4? First link on Google gave me this https://www.fnb.co.za/invest/linked-savings-account.html

 

[Fireball]

Why would you need more then 4? First link on Google gave me this https://www.fnb.co.za/invest/linked-savings-account.html

I have different accounts for different savings goals. Each gets an arbitrary amount deposited each month. It's how I budget for things.
E.g.

Emergency fund
Car maintenance
Phone replacement
Vacation / Holiday
House deposit
Clothes
Games/Toys/Apps
Washing mashine

etc...

Also, that link doesn't give any useful info. I've been there. I've read quite a few pages. Looked at the FAQs. Read the PDFs.
Still haven't found the information I'm looking for. Which is why I am asking people here.

 

[DrJohnZoidberg]

I have different accounts for different savings goals. Each gets an arbitrary amount deposited each month. It's how I budget for things.
E.g.

Emergency fund
Car maintenance
Phone replacement
Vacation / Holiday
House deposit
Clothes
Games/Toys/Apps
Washing mashine

etc...

Also, that link doesn't give any useful info. I've been there. I've read quite a few pages. Looked at the FAQs. Read the PDFs.
Still haven't found the information I'm looking for. Which is why I am asking people here.

Lol, banks must hate customers like you

 

[Fireball]

Lol, banks must hate customers like you

Suits me fine, I hate banks

 

[airborne]

Don't some of these savings pockets have limits and if you go over that the interest reduces?

Also remember the bank charges, maybe once you have correlated all the info, interest offered, number of pockets, monthly bank charges, etc edit the op and post it there so anyone finding the thread later can see it.

 

[backstreetboy]

I have different accounts for different savings goals. Each gets an arbitrary amount deposited each month. It's how I budget for things.
E.g.

Emergency fund
Car maintenance
Phone replacement
Vacation / Holiday
House deposit
Clothes
Games/Toys/Apps
Washing mashine

etc...

Also, that link doesn't give any useful info. I've been there. I've read quite a few pages. Looked at the FAQs. Read the PDFs.
Still haven't found the information I'm looking for. Which is why I am asking people here.

Use 22seven.com. There you can have a gazillion transactions AFAIK even the Capitec banking app comes with a budget feature.

 

[Fireball]

Use 22seven.com. There you can have a gazillion transactions AFAIK even the Capitec banking app comes with a budget feature.

Have been using 22Seven for years. I love them.
The reason I go for the multiple accounts route instead of the 22seven budgeting route: I am an impulsive spender, and saving doesn't come easy to me. I'm trying to change that.
Putting the funds in savings accounts and locking them down with a notice period is my desperate attempt to reform my bad money management ways.

 

[Fireball]

Don't some of these savings pockets have limits and if you go over that the interest reduces?

Also remember the bank charges, maybe once you have correlated all the info, interest offered, number of pockets, monthly bank charges, etc edit the op and post it there so anyone finding the thread later can see it.

Have no clue about the limits. But for me, the interest rate is really a moot point since I am not aiming to invest (yet), just to park my money.

With Nedbank, the savings pockets are free.
Couple that with a R5 p/m pay-as-you-use transactional account (required to get the above), and it's a cheap option.
Yes, there are bank charges for things like external debit orders, ATM withdrawals, etc, but almost none of that applies to me, since I do all my 'real' banking with Capitec.

I'll post any information I deem worth sharing here for the benefit of others.

 

[backstreetboy]

Have been using 22Seven for years. I love them.
The reason I go for the multiple accounts route instead of the 22seven budgeting route: I am an impulsive spender, and saving doesn't come easy to me. I'm trying to change that.
Putting the funds in savings accounts and locking them down with a notice period is my desperate attempt to reform my bad money management ways.

Seems you need to setup a debit order/do a eft every month to a Syngia/Allan gray money market fund. You can withdraw it easy but won't see it everyday and get the urge to spend it.

 

[Fireball]

Seems you need to setup a debit order/do a eft every month to a Syngia/Allan gray money market fund. You can withdraw it easy but won't see it everyday and get the urge to spend it.

The same can be said of the savings pockets. The benefit the savings pocket route has, is that I can know exactly what the funds are earmarked for.

With the money market fund, it's all just one big pool of money. I won't know how much I have saved up for the different categories, just one lump sum. And that is exactly what I am trying to avoid.

 

[PsyWulf]

I like the idea of having single view in the banking app/site for the different "savings",so would be good if you post the limits when you get it

I considered doing something similar with a 2nd bank account but the admin overhead seemed bit much for the simple goal

 

[spiff]

how safe & secure is this 22seven.com?

 

[backstreetboy]

The same can be said of the savings pockets. The benefit the savings pocket route has, is that I can know exactly what the funds are earmarked for.

With the money market fund, it's all just one big pool of money. I won't know how much I have saved up for the different categories, just one lump sum. And that is exactly what I am trying to avoid.

Just keep an eye on the exchange rate eg for FNB you might get a weaker interest rate if you have many accounts:

R1 - R19 999 5.25%
R20 000 - R24 999 5.50%
R25 000 - R74 999 6.20%

 

[backstreetboy]

how safe & secure is this 22seven.com?

You can create a read-only account at FNB or use a security dongle for Capitec.

 

[Fireball]

I like the idea of having single view in the banking app/site for the different "savings",so would be good if you post the limits when you get it

I considered doing something similar with a 2nd bank account but the admin overhead seemed bit much for the simple goal

Yeah, opening a new account is a bit of an admin schlep.

But, as far as I know, if I go open the Nedbank account tomorrow, I can open and link all 10 savings pockets right then and there.

Internal debit orders (i.e. account transfers) are free, so one can automate the savings quite a bit.

E.g. Month-end, I pay (or debit order) R3000 into the main transactional account.

The next day, the internal debit orders start going off. Each pocket takes its share from the transactional account.
R1000 to emergency fund.
R500 to car maintenance.
R300 to phone replacement.
etc.

This really hits the 'pay yourself first' and the 'automate your savings' goals methinks.

 

[Fireball]

Just keep an eye on the exchange rate eg for FNB you might get a weaker interest rate if you have many accounts:

R1 - R19 999 5.25%
R20 000 - R24 999 5.50%
R25 000 - R74 999 6.20%

True, but like I said, I'm not really too bothered about the interest. I have separate investment vehicles for that.
This is just forced budgeting. The few percentage point hit hurts less than impulsive spending and credit card interest.

 

[mogiletsiZA]

Really like this concept of specified saving. Not sure about Savings Pockets, but FNB Money on Call accounts are free and you may be able to have a few of those. What's more is that you can perform 3rd party payments with this account which allows some flexibility with your savings; ie certain income getting paid directly to Money on Call account.

I myself use these savings accounts to generate enough interest to cover account/admin fees etc. While at the same time storing money in a separate entity from credit and cheque. Significant amounts of cash in a cheque account (no interest) is a no no - money should work for you - if the savings account is free; with interest and with immediate transfers between cheque and savings then what else is there to consider? Not to mention the fact that 6.20% pa is not bad when considering equity performances for the last 3 years.

 

[backstreetboy]

Totally your choice, but just wanted to mention I do the same with FNB with Money on Call accounts - also no extra fee. Have a great day!

Give rep to NoviceDIYer...

 

[Fireball]

Brilliant! Thanks for finding that! Repped both of you