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 the National Treasury released an alarming report stating that only 6% of South African will be able to maintain their current living standard even after retirement.
With these alarming 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 & Investments at Standard Bank has outlined some great savings and investment options to help you get started on your savings journey.
Savings tools to get you started
The PureSave savings account available at Standard Bank is a great way to get started on your savings Journey. This offering has plenty of benefits attached to it.
- You can earn interest while using the account for daily transactions.
- No debit orders may go through this account.
- There are no monthly fees attached to this account.
- You get 3 free ATM cash deposits per month.
Another great savings tool available at Standard Bank is the MarketLink. To get started with this account you would need an opening deposit of R1000 with an interest of up to 3.5%. With this savings tool you qualify for the following:
- Monthly paid out interest
- 2 free ATM cash deposits monthly
- Once your balance reaches R20 000 you qualify for a higher interest rate
- 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 you and a group of friends/family can saving through. The benefits attached to this account include:
- Immediate access to savings
- First 5 deposits are free of charge
- Cash prizes from regular draws are available should the bank balance be R5000 and above
- Members are not liable to pay an account fee should the balance be above R5000
Tax Free Savings
This type of savings account allows you to put money away without having to worry about paying the taxman. Individuals are only permitted to have 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 will give your savings portfolio a great boost. It has the following features and benefits:
- The opening balance is set at R250.
- Interest on the account currently stands at 3.50%.
- Individuals have access to the funds in their accounts at any given time.
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 you can make use of to get started on your savings journey. Thopi recommends getting started early to get ahead of your goals and secure a better, brighter financial future.