Where do you save your rainy day fund?

[johnspake]

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

Thanks for the advice - I'll do some readings on money markets (not too familiar with them). Is there a specific one you would recommend?

 

[johnspake]

View attachment 927939

Can only access 40% of the funds and the they do not provide info how one gets the UP to 6.4%. It can be much less interest if one does not qualify for the up to bit.

From my understanding, you can access 40% of the funds before the fixed term lapses, which would probably work for me if I top it up to 150k. The up to part also falls within my limits - R100k - R500k for 12 months. From the attached screenshot of the interest rates, there's a footnote reading "INTEREST RATES ARE QUOTED AS PER ANNUM RATES AND INTEREST IS PAID OUT MONTHLY OR AT MATURITY." This implies monthly compounding, right?

 

[johnspake]

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

That's not a bad idea - I'll look into it and consider if it's a good option for me taking into account any possible interest losses. Thanks!

 

[newby_investor]

Thanks for the advice - I'll do some readings on money markets (not too familiar with them). Is there a specific one you would recommend?

Allan Gray | Money Market Fund

The Money Market Fund’s goal is to maintain the value of your investment while generating a sound level of income.

www.allangray.co.za

Note that this doesn't constitute financial advice etc. If you'd like to learn more, this may be informative:

Allan Gray | What is a money market fund?

Money market unit trusts, commonly referred to as ‘money market funds’, have become a synonym for safe, secure and reliable investments. You put your money in and you get it back with a sliver more. But no investment is risk-free. Understanding how money market unit trusts work can help you use...

www.allangray.co.za

 

[Kashman]

So I have a just finish building my 6 month rainy day fund. No FA so I built my own conservative portfolio which I rebalance when necessary. in essence 60% in bonds, 25% in money market and 15% in ETF(equities). conservative portfolio generates anywhere from 7-9% on average annualized..

Definitely recommend the tyme bank as well, all cash, little to no risk. Its my next saving vehicle for cash.. will create 10x goal save accounts for anything we suddenly want to invest/splurge etc

 

[peanutbunny]

Firstly, forex gains and losses are not subject to CGT or normal income tax if you are an individual and you are not a forex trader, i.e. buy and sell forex for profit. So if you deposit 100 pounds into your offshore account today valued at R2000 and then a few months later withdraw that same 100 pounds at R2200, you will not pay any tax on the R200 difference because it is not income, it just simply an exchange rate fluctuation. Note, this does not apply to juristic entities such as private companies, or natural persons who trade forex for profit who always have to account for realised and unrealised forex gains and losses in their income tax returns.

Secondly, no matter where you hold your offshore account, if you are a SA tax resident you WILL be liable for tax on any income you earn from those funds. So if you earn any interest, for example, you should declare this interest income on your SARS tax return. It doesn't matter whether or not you have repatriated the funds or kept it offshore, it makes no difference to SARS.

https://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-IT-G11 - Tax Guide for Share Owners.pdf Go to page 30

 

[Speedster]

https://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-IT-G11 - Tax Guide for Share Owners.pdf Go to page 30

That is capital gains?

 

[CT_Biker]

In good ol' USD saved in Switzerland.

 

[Meister-Man]

So I have a just finish building my 6 month rainy day fund. No FA so I built my own conservative portfolio which I rebalance when necessary. in essence 60% in bonds, 25% in money market and 15% in ETF(equities). conservative portfolio generates anywhere from 7-9% on average annualized..

Definitely recommend the tyme bank as well, all cash, little to no risk. Its my next saving vehicle for cash.. will create 10x goal save accounts for anything we suddenly want to invest/splurge etc

Congrats!

 

[Alton Turner Blackwood]

At Tops

 

[Ecco]

Go to your nearest kiosk and go print a card.

By printing a card at the kiosk how much does the limit increase to?

 

[backstreetboy]

By printing a card at the kiosk how much does the limit increase to?

R40k to R100k afaik.

 

[6spdmanual]

Tyme Bank save goal.

 

[RonSwanson]

 

[w1z4rd]

My "rainy day" fund is definitely held in staked interest bearing crypto.

 

[Creag]

My access bond (we put all extra cash there)
Satrix share accounts
Share Trading Account

 

[Priapus]

My bond, Can pull the extra cash at any time I need it.

 

[Not_original]

My "rainy day" fund is definitely held in staked interest bearing crypto.

I've also been reading into staking. In your words, how does it work? From what I can read from Etoro, it sounds good, but I haven't consulted other sources yet

 

[w1z4rd]

I've also been reading into staking. In your words, how does it work? From what I can read from Etoro, it sounds good, but I haven't consulted other sources yet

Get a wallet like Exodus wallet that lets you stake all major stakable currencies. Decide on which cryptos you want to stake. Good ones are Solana (6.6%) and Cardano (4.9%). Once you send it to your Exodus wallet you will see there is a little "rewards" tag in the wallet you sent to (ie, Cardano). Once the crypto is in your wallet, click on that rewards icon and then just follow the steps it prompts you to stake. You can stake all of it or only a little.

Whatever you stake becomes an interest bearing account. When I give percentages, thats the interest you earn per year.

Different currencies stake in different ways. Cardano and Solana are pretty easy to stake, but I also tried ONT (16%), when you unstake from ONT it can take up to 20 days before your stake is released and you can move the money. Cardano and Solana are more liquid.

You cant stake all currencies, so just check what you want to stake is a supported staking crypto.

 

[Not_original]

Get a wallet like Exodus wallet that lets you stake all major stakable currencies. Decide on which cryptos you want to stake. Good ones are Solana (6.6%) and Cardano (4.9%). Once you send it to your Exodus wallet you will see there is a little "rewards" tag in the wallet you sent to (ie, Cardano). Once the crypto is in your wallet, click on that rewards icon and then just follow the steps it prompts you to stake. You can stake all of it or only a little.

Whatever you stake becomes an interest bearing account. When I give percentages, thats the interest you earn per year.

Different currencies stake in different ways. Cardano and Solana are pretty easy to stake, but I also tried ONT (16%), when you unstake from ONT it can take up to 20 days before your stake is released and you can move the money. Cardano and Solana are more liquid.

You cant stake all currencies, so just check what you want to stake is a supported staking crypto.

6.6 a year. That doesn't sound good at all? Am I missing something