Answer:
Ideally you should look for a fixed-term savings plan as the interest rate will be fixed for the duration of your savings. Currently the best rate available on the market is eight percent. This is offered for amounts between R10 000 and R25 000 and 7.5 percent for amounts under R10 000. However, before settling on one option, do some research and find the best savings plan to suit your needs. Then decide how long you want to fix the savings term for (e.g. 12 months). Also bear in mind you won’t have immediate access to your money and funds will only be available after the maturity date. Should you want to fix the savings term for a longer or shorter period you can do so, provided it is between six and 24 months.

The benefit of a fixed-term savings plan over a daily savings account is more control over your funds as you won’t have access to it until the term has expired. This is particularly important for people who will be tempted to spend this growing sum of money on unimportant things. By placing boundaries on your finances you will reduce the risk of spending it unwisely and you will become more responsible in your approach to money matters. During a recession when every cent counts, this is a positive behaviour to develop!

Turn to page two for advice on breaking free from debt...

For further information about Capitec Bank, click here!

Page: 1 of 2 - next

RSS

Digg

de.li.cious

facebook

MORE PERSONAL FINANCE

Seven ways to get rich Wanna be rich? Karin Muller of Sanlam shares seven tips that will make your dream come true...

Best bank accounts in SA New research indicates that one bank clearly has the most highly rated banking products in SA...

SA's cheapest bank Which bank has the lowest bank charges? Research by ThinkMoney indicates a clear-cut winner.