The South African savings culture has often been under the spotlight, with as many of 60% of South Africans having to dip into their savings to make ends meet. Prior to the COVID-19 pandemic, savings statistics were already low, and have been further exacerbated by the pandemic. In 2019, National Treasury released an alarming report stating that only 6% of South Africans will be able to maintain their current living standard after retirement.
With these worrying statistics, it has never been more important for South Africans to consider various savings options that are available to them. Thopi Mhloli, Solution Owner for Savings and Investments at Standard Bank, outlines some great savings and investment options to help clients get started on their savings journey.
The PureSave savings account available at Standard Bank is a great way to get started on a savings journey. This offering has plenty of benefits attached to it, including earning interest while using the account for daily transactions, no debit orders going through this account, no monthly fees, and three free ATM cash deposits per month.
Another great savings tool available at Standard Bank is the MarketLink. An opening deposit of R1,000 is required, with interest of up to 3.5%. This savings tool qualifies users for monthly paid-out interest, two free ATM cash deposits monthly, a higher interest rate once the balance reaches R20,000, and anytime access to funds.
Society Scheme Savings Account
Society schemes are a great way to save money together as a group. Whether that money is used for burials or for investment purposes, saving together towards a common goal yield will often lead to gratifying results. Standard Bank has a Society Scheme Savings Account that a group of friends or family can save through. The benefits attached to this account include immediate access to savings, the first five deposits are free of charge, cash prizes from regular draws once the bank balance reaches R5,000 or over, and members are not liable for account fees should the balance be above R5,000.
This type of savings account allows money to be put away without having to worry about paying tax. Individuals are permitted to have only one tax-free savings account in their lifetime, with a limit of R500,000. This account also carries an annual limit of R36,000. Standard Bank has a Tax-Free Savings offering that gives a savings portfolio a great boost. Its features and benefits include an opening balance set at R250, interest on the account currently stands at 3.50%, and individuals have access to the funds in their account at any given time.
There’s no time like the present
Everyone dreams of a better future. Accordingly, Standard Bank is committed to giving its customers tools and support to resolve today’s challenges, ensuring South Africans experience tomorrow’s victories. These are just some of the savings tools that can be used to embark on a savings journey. Mhloli recommends starting early to secure a better, brighter financial future.
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