Interest on account with different entities.

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Snormossel

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Hi all

Maybe someone has gone through this already.
Want to find out the percentage rate you will get on R600000 if you invest the money. Places like Alan Grey, Investec, Nedbank, Absa whoever.

Just want to know the rate you will get Example: 9% with Absa, 10.5% with Alan Grey or whatever.
 
Most money market accounts are linked to prime, absa has a special savings account for values over R250k but they dont show the interest rates for that account on their site
 
Bondizzo said:
Most money market accounts are linked to prime, absa has a special savings account for values over R250k but they dont show the interest rates for that account on their site
Click to expand...

Assuming he's going for a money market account or a bland savings account, he asked about savings.

It's really hard to tell. First off. STAY AWAY FROM ABSA. THEY STEAL YOUR MONEY, RAPE EVERYONE YOU HAVE EVER COME INTO CONTACT WITH AND THEN WHEN YOU ARE DEAD TRY TO STEAL YOUR LIFE INSURANCE MONEY TOO!

Okay, so maybe I'm overreacting a bit. But trust me, ABSA shouldn't be allowed to trade as a "financial institution" because they're even more vial than SARS. Hell, SARS is heavenly compared to them.

ANYWAY. Alan Gray I feel is the way to go, your investments would yield an average of around 10-15% a year. However, I've seen an investment go above 43% in as little as 8 months. Over 3 years the average per year has come down to 20-25% which is still very much over expectations but still very good return on money.

But like MANY people have said, don't take financial advice off of forums. I'd suggest going to a financial broker or Alan Gray themselves and ask them what you should do with your money.

Remember to diversify though. The market is a bit volatile still but these guys know what they're doing. It's still a risk.

Maybe invest 1/4 of it and then 2/4 of it in a money market account and the rest in a unit trust.

If you have debt, pay that **** off first. Better in the long run. But i assume with that much money you're not in debt. Good luck
 
Thanks a lot for the replies.

The reason I am asking:

We bought a house and my parents said that they will pay half of the total amount. So me and the SO will get a bond for R600k and they will pay R600k cash but we need to pay their interest what they would have gotten when they invested it. Should work out cheaper that way because we will never get a bond for R1.2m and the interest that we pay them should be less than what we pay the bank.
 
Eh ... why don't they tell you what interest they want?

I've seen contracts stating 'the same as reasonable interest otained on JSE' which - as Acidrazer pointed out - can average 15% and may be more than the interest you'd have paid the bank.

However, it is a moot point since you couldn't have got the R1.2m bond anway - and I doubt your parents would fsck you ;)
 
Bondizzo said:
Most money market accounts are linked to prime, absa has a special savings account for values over R250k but they dont show the interest rates for that account on their site
Click to expand...



Please don't tout ABSA on here. Very distasteful and any reference to them contaminates my aura :)
 
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