Where do you save your rainy day fund?

Hamster

Hamster

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Ecco said:
I dont have any plans to leave the country - so what happens if i need to access the cash?
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You can use feeder funds and invest in those offshore funds via ZAR on any share trading platform. You get feeder fund (FF) versions of offshore unit trusts and any pseudo "offshore" ETF you buy in SA like STXWDM or ASHEQF are feeder funds.

The downside is that any tax event on that money (capital gains, dividends, interest, etc) are taxed under SA tax law. The upside is that you are hedged against the Rand, the money is in SA and that unless you are selling often the tax we're talking about is most likely not a cause for concern.
 
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joker08

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zerocool2009 said:
t R1 in eac
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supersunbird said:
Whichever and however you want, and you name the GoalSaves whatever you want:

Some might put R10 000 in each of the 10 GoalSaves
Some might put R40 000 in one GoalSave, R20 000 in another, R10 000 in another etc
Some might put R99 991 in one GoalSave and R1 in the other 9 (when you withdraw from a GoalSave you have to take all the money in it out, then you can put back what you don't need back however you want in those accounts already earning 6%)

Bottom line is, it's just an easy to use 1 to 10 simple savings account/s (that you can call whatever) with a good interest rate.

View attachment 917015
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My account has a limit of 40000. How do I increase that limit ?
 
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Dee96

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Why can't you just create one goal save? What's the benefit of opening 9 others with R1each
 
backstreetboy

backstreetboy

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Dee96 said:
Why can't you just create one goal save? What's the benefit of opening 9 others with R1each
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When you cash it out you have to cash out the whole Goalsave. So if you only need R5k you have to take the whole R100k and start again at 4% interest unless you have another 9 Goalsaves already primed.
 
supersunbird

supersunbird

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Dee96 said:
Why can't you just create one goal save? What's the benefit of opening 9 others with R1each
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Well, you can have just 2, the ones with the big money and one R1 (which would also be at 6% because it's been there 90+ days). When you cash out a goalsave you have to take out everything, and the goalsave closes, so the money you don't use from the withdrawal from the 1st goalsave needs to go back into a goalsave, right?

That's just one way people do it, there are other ways to do it too. some have 10 equal amount goalsaves, for example.
 
supersunbird

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johnspake

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Hey guys,
What would be the next best alternative to TymeBank for keeping an emergency fund of ~100k? Only SA citizens can open an account with them (and perhaps PR holders). Unfortunately, I do not yet have a SA ID :(
 
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newby_investor

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johnspake said:
Hey guys,
What would be the next best alternative to TymeBank for keeping an emergency fund of ~100k? Only SA citizens can open an account with them (and perhaps PR holders). Unfortunately, I do not yet have a SA ID :(
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Probably the easiest will be a money market account at your main bank. Might not be best returns but IMO this isn't the defining criterion for an emergency fund of this size.
 
Speedster

Speedster

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johnspake said:
Hey guys,
What would be the next best alternative to TymeBank for keeping an emergency fund of ~100k? Only SA citizens can open an account with them (and perhaps PR holders). Unfortunately, I do not yet have a SA ID :(
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African bank?
 
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deweyzeph

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johnspake said:
Hey guys,
What would be the next best alternative to TymeBank for keeping an emergency fund of ~100k? Only SA citizens can open an account with them (and perhaps PR holders). Unfortunately, I do not yet have a SA ID :(
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Capitec is great for savings account. You should be able to open an account as a foreigner if you can prove you are temporarily resident here, like a with a work visa or a student visa. If you're just in the country as a tourist you won't be able to open a bank account at all.
 
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newby_investor

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deweyzeph said:
Capitec is great for savings account. You should be able to open an account as a foreigner if you can prove you are temporarily resident here, like a with a work visa or a student visa. If you're just in the country as a tourist you won't be able to open a bank account at all.
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Capitec won't work I'm afraid. My wife is on a spouse visa, not a PR yet. They didn't want to know.

Maybe this will have changed in the past three years but I was unsuccessful at Capitec.
 
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johnspake

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newby_investor said:
Probably the easiest will be a money market account at your main bank. Might not be best returns but IMO this isn't the defining criterion for an emergency fund of this size.
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I bank with FNB and they do have a MoneyMaximizer account. This is also only for SA citizens, unfortunately. SA needs to up its game for foreigners
 
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johnspake

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deweyzeph said:
Capitec is great for savings account. You should be able to open an account as a foreigner if you can prove you are temporarily resident here, like a with a work visa or a student visa. If you're just in the country as a tourist you won't be able to open a bank account at all.
Click to expand...
newby_investor said:
Capitec won't work I'm afraid. My wife is on a spouse visa, not a PR yet. They didn't want to know.

Maybe this will have changed in the past three years but I was unsuccessful at Capitec.
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I'll give them a try. I see they have good interest rates on their fixed deposit account: https://www.capitecbank.co.za/global-one/save/single-deposits-option-fixed-term-savings-plan/
 
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newby_investor

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johnspake said:
I bank with FNB and they do have a MoneyMaximizer account. This is also only for SA citizens, unfortunately. SA needs to up its game for foreigners
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Understood and agreed. It's a pity about this, you may actually battle.

The other alternative that will be foreigner-friendly is a money-market unit trust from the likes of Allan Gray. My non-permanent-resident wife was able to open an account there quite easily. Coronation, Sygnia, PSG, the usual suspects should all similarly have this facility.

A bit more hassle since it's a unit trust instead of a savings account, but the money can still be available in 3-4 days should you need to withdraw
 
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newby_investor

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supersunbird

supersunbird

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RandomGeek

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Another strategy is a fixed deposit "ladder" strategy. Example:
Instead of one big fixed deposit of 6 months' duration, you rather make 6 smaller deposits of 6 months duration, and stagger them one month apart. By doing this there is always some money coming available soon.

Obviously a bit more maintenance (and you may lose a bit of interest if the institution gives better rates for bigger deposits) but may work for some
 
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