> Six steps to debt freedom

> Brighten their future

> Gold fever: here to stay?

> Nedbank goes green

> Evaluating performance

> Gold hits 18-month high

> Pay less estate duty

> Why lending will resume

> Positive platinum demand

> Breaking the habit

Today, 23 November 2009

Yesterday, 22 November 2009

› SACP attacks Malema

› Meteor 'flash' in Gauteng

› Malema attack 'racist'

› Govt settles with Pikoli

› Will cops play brokers?

Following on from the success of the Msanzi account, Standard Bank has launched an entry-level savings product aimed specifically at encouraging more saving across a wide variety of income groups in South Africa.

The account, known as PureSave, is a simple card-based savings account with no monthly management fee, ensuring that savings are not eroded over time. The account has no stipulated investment period, which means customers can leave money in the account for as long as they like.

Says Keith Fuller, Director Transaction Products at Standard Bank: "Our main objective was to develop a simple product that is affordable and accessible, while at the same time encouraging people to save. Interest rates are attractive at all levels of the product, and you only need R50 to start your savings account. Customers are then encouraged to transfer more funds into the account and grow their savings pool."

At the moment most of the savings products available on the market are transactional products with a built in savings component. Very few offer a pure savings solution for smaller savers, says Fuller.

South Africans not saving enough
"Initiatives that encourage a regular and focused savings habit are welcomed," says Dr Penny Hawkins, a member of the Advisory Board of the South African Savings Institute (SASI).

The Institute has regularly voiced its concern about the low level of household savings in the country and the importance of forward planning for both individuals and the economic health of the country.

Transactional functionality on PureSave is limited to deposits, withdrawals and inter-account transfers. Customers get two free cash deposits a month at any Standard Bank ATM. Fees are charged on cash deposits at branches and for withdrawals from the account.

Electronic account payments, debit orders and stop order payments into the account are allowed, and interest is calculated on daily balance and paid monthly into the account.

PureSave accounts can be opened through Standard Bank branches, internet banking and the bank's customer contact centre. "Customers are allowed to open more than one PureSave account and accounts in the names of minors may be opened by their parents and guardians," says Fuller.

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