Savings Advice

[4ftersh0ck]

Hi guys,

Please could someone give me some advice. Instead of saving all my money together I would like to create separate savings accounts, eg: 'Education', 'Retirement', 'Vehicle', 'Holiday', 'Nespresso machine', etc... When I bought my Ford Fiesta last year I bought it with a service plan, not a maintenance plan and I have just had my first service. I also need to replace the side mirror, R3990!, so I would like to put money aside and get that done at the next service.

Do any of the banks offer this? I don't want to create a new account, just be able to separate and label the different savings pockets so it's easier to manage. I am with Nedbank and my wife is with FNB.

TIA

 

[The_MAC]

I would invest categories such as "retirement" and "education" as these are long term goals. The short term expenses I would throw into an FNB savings pocket (unfortunately only one per account) and keep a small spreadsheet for tracking purposes.

 

[Macethy]

I'm sure that the banks can offer you accounts for all your needs, the problem is that they might charge you extra per account.

A simple way to go is deposit money in a single account but use a spreadsheet to allocate it to different things such as education, retirement, etc. If you take money out of the account, just adjust your spreadsheet accordingly with which "portion" of the account you're taking it out from.

Also, if you're going to be saving for a childs education or retirement, a savings account really isn't the best way to go about it...

 

[4ftersh0ck]

Thanks for the advice guys. yeah, I used the Education and Retirement categories just as examples. The spreadsheet option is a great idea.

 

[akescpt]

capitec has four accounts you can label. this is in addition to the primary account at no extra cost.

 

[Gtx Gaming]

with fnb i can rename my accounts.

i can also open as many savings account as i want.

 

[The_MAC]

with fnb i can rename my accounts.

i can also open as many savings account as i want.

I'm sure they charge you for each savings account

 

[4ftersh0ck]

That's great news about FNB if they do not charge for each savings account

 

[^^vampire^^]

Retirement annuities for saving for retirement.
Stock market account for long term savings
ETFs/Unit Trusts for long term savings
5 Capitec accounts for education/repairs/general savings (all under R10 000 to get the max interest)
Cheque account for salary and general monthly transacting

You can have a maximum of 5 capitec accounts which you can name which is quite useful. I've named mine general, education etc...

 

[Gtx Gaming]

I'm sure they charge you for each savings account

nope but you need R100 min for them , which you get back when you close account.

 

[SeRpEnT]

nope but you need R100 min for them , which you get back when you close account.

Can anybody also banking with FNB confirms this?
Would this be available to all cheque account options? Or perhaps only to the elite personal account clients?

 

[Gtx Gaming]

Can anybody also banking with FNB confirms this?
Would this be available to all cheque account options? Or perhaps only to the elite personal account clients?

I have , smart account( free) , Easy account R4 a month( used for depositing cash into my account) , Savings pocket linked to cheque account(free) , savings pocket linked to smart account(free), savings pocket linked to easy account(free) , flexi deposit account(free)

And then i have normal cheque and credit account also.

I have This all on my banking profile.

 

[Ramcat]

I can confirm that i have 4 savings pockets as well. You just need R100 in them.

 

[F1 Fan]

Put the money in your car loan account(assuming you have one) and save on interest. Use a spreadsheet to keep track of money spent.

 

[F1 Fan]

I have , smart account( free) , Easy account R4 a month( used for depositing cash into my account) , Savings pocket linked to cheque account(free) , savings pocket linked to smart account(free), savings pocket linked to easy account(free) , flexi deposit account(free)

And then i have normal cheque and credit account also.

I have This all on my banking profile.

Why so many?

 

[mr_norris]

Retirement annuities for saving for retirement.
Stock market account for long term savings
ETFs/Unit Trusts for long term savings
5 Capitec accounts for education/repairs/general savings (all under R10 000 to get the max interest)
Cheque account for salary and general monthly transacting

You can have a maximum of 5 capitec accounts which you can name which is quite useful. I've named mine general, education etc...

This!

Surely you'd earn more interest on one large lump sum rather than a few spread across a few accounts? I use the spreadsheet method. Oh - I'm talking short term here.

 

[SeRpEnT]

Put the money in your car loan account(assuming you have one) and save on interest. Use a spreadsheet to keep track of money spent.

What he said.
Just make sure you are able to withdraw the money once its transferred there.

 

[BloodBurner9000]

This!

Surely you'd earn more interest on one large lump sum rather than a few spread across a few accounts?.

No. 10% of 2000 = R200, 10% of R1000 + 10% of R1000 = R200.

Factor in costs per account tough.

 

[VG008]

No. 10% of 2000 = R200, 10% of R1000 + 10% of R1000 = R200.

Factor in costs per account tough.

Certain banks provide a higher interest rate if you have more funds in the account.
So, you might earn 10% for funds under R1000.00, but can earn 15% for funds over R1000.00.

 

[VG008]

IMO having multiple savings account is cumbersome.

As suggested, excel is one method of keeping track of the different savings categories. I used this method initially.
I'm currently using YNAB; a budget tracking app.

I import my bank accounts in YNAB and assign a certain portion of my savings to different categories.