Saving money and storing money is often done at banks and this is fairly common knowledge. Many are faced with a variety of banks to do their banking which is not directly a bad thing. With that said each bank is different so having a variety despite potentially making it slightly more confusing to navigate your way to the best bank for you it is still good to have many options so you are not forced to use a bank with terms, conditions, and fees that are not fitting to your individual needs.
Saving money is extremely important. If the pandemic has taught us anything it is that we can not rely on surviving on a month-to-month basis. Missing a single salary when you do not practice any money-saving techniques could potentially mean not being able to get what you need to get through a month and in some more extreme cases not being able to pay your rent. Most of the youth do not even realise the importance of building a good credit score while you can. Finding the best bank to save money can be a daunting task so let’s demystify banking here is the top four banks for you to save money!
Capitec – Global one Account
Capitec Bank is amongst the most trusted banks in South Africa and has some amazing options for saving. The Global one savings account is a user-friendly savings account that has two options to begin your savings journey. Pick from a Fixed-term or Flexible savings account. The Fixed-term is a single deposit of a minimum of R10,000 to R20,000,000. You can choose between 6 and 60 months as the investment period for your account. A single deposit is made during the investment period of your choosing. If this is in place, you can earn up to 8.15% interest. Account balances earn daily interest based on a nominal interest rate. A certain amount accumulates over time before it is capitalised on a monthly basis. The Flexible version is similar but interest will never reach as much as the Fixed plan and you can deposit a minimum of R25 whenever you want to add to this savings account.
African Bank – MyWorld Savings Pocket
The “locally controlled” bank. A trusted and easy bank for those who are young or just simply not in a position to meet the minimum deposit of other banks’ fixed deposits. At African Bank, they offer savings account options similar to Capitec. They have a MyWorld Savings Pocket that acts as a savings account with a 4.25% interest rate per annum. It comes with a lot of benefits through its structure. It can be opened up with a minimum deposit fee of R0 which makes it easy for anyone to open up an account and start saving! They offer a fixed deposit savings account as well that has a minimum deposit fee of R500 which is far more manageable and will still give you a feel of what a fixed deposit savings account will be like. The fixed deposit account at maturity can bring you a return of 10.01% of your initial investment or alternatively after a year at 8.45%.
Nedbank – MyPocket Savings Account
Every South African has heard of Nedbank. This well-established bank has easy savings options for anyone to get into with a minimum deposit fee of R0 and depending on the account an interest return rate per annum between 3% and 5%. Although not as high in terms of interest rate they make up for it in service standards and reasonable fees.
FNB – Savings Account
First National Bank offers simple savings account with an even simpler incentive. The more you deposit the higher your interest return rate gets. Starting with as little as R0 start saving at an interest rate of 3.05% with lower deposits and build your way up to 7.8% per annum once you have deposited enough. Long-term savings wise sounds the most rewarding and with the ease of opening an account and the added integration FNB offers with PayPal, First National Bank is a fantastic contender for the youth looking to start saving.