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a Matter of interest.
#1
I was recently browsing through the FNB offerings, in regards to "investment" accounts. I was specifically looking at the various amounts of interest you could earn through the various products they had on offer.
As such, I started comparing it to the interest I was earning on the money I had in my Savings pocket.

I realised that I had been shafting myself for the past year and a couple of months, with the interest I was earning, compared to what I could be earning if I moved some of my funds to another product.

I was specifically looking for something where I had immediate access to my funds. I decided to go the following route, to maximise the amount of interest I could generate, as I was currently only earning 2.5% P/A on the money in my Savings Pocket account. I have always been transferring extra money into the Savings Pocket without keeping track of the interest earned.

I opened a Money on call account, as the Money Maximiser is out of my reach, and transferred everything apart from 19K from my Savings pocket (to stay in the 5.5% range) to the new Money on call account (which would put me at 5.25%)

Below are the comparative Products and the amount of interest per amount in the accounts:

Linked Savings Pocket: Gold
R1 - R9 999 - 5.50%
R10 000 - R19 999 - 5.50%
R20 000 - R49 999 - 2.50%
R50 000 - R99 999 - 3.00%
R100 000 + - 3.50%

Money on Call:
R5 000 - R19 999 - 3.50%
R20 000 - R29 999 - 5.25%
R30 000 - R39 999 - 5.25%
R40 000 - R49 999 - 5.25%
R50 000 - R59 999 - 5.30%
R60 000 - R69 999 - 5.30%
R70 000 - R79 999 - 5.35%
R80 000 - R89 999 - 5.35%
R90 000 - R99 999 - 5.35%
R100 000+ - 5.40%

Money Maximiser
R100 000 + - 7.35%

#2
I use Nedbank Just Invest account for that same thing, can get your money within 24 hours.

Their rates go from a minimum of 5.5% on R5000 and maximum 6.75% on R500 000

Scroll down the link for more rates on different amounts

https://www.nedbank.co.za/content/nedban...rates.html

#3
The problem with Money Maximiser is that if you drop 1c below R100,000 you start earning an interest of jack, 0, nothing, boggerall.

What I do is keep R5000-R10000 in a Money on Call for immediate access, the rest of my emergency fund in a 32-day account and a large credit limit on my credit card. The idea being that if I suddenly need a lot of cash I can use the credit card and because it is 55-days interest-free I have enough time to give notice on the 32-day account. It'll work in theory but luckily I've never had to "test" my setup before :p

7-day notice account is another option.
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#4
I am still trying to figure out how Capitec's interest works when you have a credit card. Seems I need to pay my salary into my credit card account for it to give me the higher interest, is that correct?
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#5
I currently use a Capitec account for emergency funding as it available immediately.
I have a Virgin Money credit card. Reason is there is no monthly charge to have that card and 55 days interest free.
I added the credit card as a beneficiary on Capitec, so if I need cash fast I can use Credit card and transfer from Capitec.

I know its not the highest interest rate @ 5.3% but, it's simple and doesn't cost anything cause interest earned is far greater than admin fee.

#6
(06-14-2017, 06:26 AM)Bandit Wrote: The problem with Money Maximiser is that if you drop 1c below R100,000 you start earning an interest of jack, 0, nothing, boggerall.

What I do is keep R5000-R10000 in a Money on Call for immediate access, the rest of my emergency fund in a 32-day account and a large credit limit on my credit card. The idea being that if I suddenly need a lot of cash I can use the credit card and because it is 55-days interest-free I have enough time to give notice on the 32-day account. It'll work in theory but luckily I've never had to "test" my setup before :p

7-day notice account is another option.

I like this cashflow system. Using credit facilities as they should be. 

From the terms you've used it seems that you're with FNB... I had a similar setup, but after realising that MOC interest is lower than linked savings account interest, I shifted my cash around and closed the MOC. At R5-10k in the account, you're looking at an interest rate of 3.15% in MOC versus a minimum of 5.25% in the linked saving account (it goes to a nice 6.2% if over 25k in account - I keep this as my lower limit. 

Now I know that you're probably not looking for growth in these accounts, but interest is still relevant. The only plus for MOC over the linked savings account is 3rd party payments and transfers, which I don't think you require for your purpose for the account?






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