Where can I put my money to earn the most interest in South Africa?
Index funds - Best conservative approaches
Considered low-risk investments, they give investors two ways to grow their capital. Holders benefit from capital growth as the value of the fund grows and, the diverse basket of shares will include securities that pay out dividends that are distributed to investors.
Index funds - Best conservative approaches
Considered low-risk investments, they give investors two ways to grow their capital. Holders benefit from capital growth as the value of the fund grows and, the diverse basket of shares will include securities that pay out dividends that are distributed to investors.
Where to invest for monthly income? Products like Liberty's Guaranteed Income Annuity, Liberty's Life Annuity and Liberty's Living Annuity all provide a monthly income to investors. The Guaranteed Income Annity provides a fixed income amount over a period of time.
Discovery Bank has the best interest rates in South Africa.
| Bank | Term | Nominal |
|---|---|---|
| SA Retail Bonds | 5 year | 10.75% |
| TymeBank | 1 year | 10.48% |
| Access Bank Plc | 5 year | 10.45% |
| Conservative/ Income Fund | 1yr | Data as at 29 Feb 2024 |
|---|---|---|
| Nedgroup Inv Flexible Inc A | 8.7 | More InfoInvest |
| Nedgroup Core Guarded B | 8.7 | More InfoInvest |
| Prescient Income Provider Fund A1 | 9.2 | More InfoInvest |
| Old Mutual Multi-managers Enhanced Income Fund | 9.0 | More InfoInvest |
As an example, with an interest-focused investment of R1 million, generating a return of 6.7% over 12 months will mean a return of R67 000 for the year.
Time To Calculate Your Retirement Target
Did you know that the current average South African salary comes to around R22 500 per month? So, if you want to continue living off this amount for the rest of your life, you will need to have R4. 5 million saved up by the time you retire at the age of 65.
FNB is the preferred bank for personal and business banking among South African retail and institutional investors, with Standard Bank second and Absa third. Discovery Bank is the preferred new digital bank, significantly outperforming TymeBank and Bank Zero.
| Amount | Interest (per annum) | Effective Rate |
|---|---|---|
| R500 000 - R999 999 | 5.40% | 5.54% |
| R1m - R1 999 999 | 6.00% | 6.17% |
| R2m - R2 999 999 | 6.05% | 6.22% |
| R3m - R3 999 999 | 6.10% | 6.27% |
What is FNB interest rate on fixed deposit?
| Period | R10 000 - R249 999.99 | R1 000 000+ |
|---|---|---|
| 6 month | 8.00% | 8.15% |
| 9 month | 8.15% | 8.30% |
| 12 month | 8.55% | 8.70% |
| 24 month | 8.65% | 8.80% |
A new report found that FNB's Easy PAYU is the least expensive bank account for basic banking needs in South Africa among the country's largest banks.
A few do and, on this basis, there are four banks that offer effective rates of over 10% for a 12-month fixed deposit: African Bank, Grindrod Bank, Nedbank and TymeBank. This requires a nominal rate of 9.57% or higher. * All rates correct as at 26 June 2023.
Deposit Interest Rate in South Africa increased to 7.08 percent in December from 6.96 percent in November of 2023. Deposit Interest Rate in South Africa averaged 9.94 percent from 1977 until 2023, reaching an all time high of 21.60 percent in August of 1998 and a record low of 3.74 percent in March of 2021. source: IMF.
| Term (Months) | R0 - R9 999 | R10 000 - R74 999 |
|---|---|---|
| 13 - 18 | 3.20% | 7.75% |
| 19 - 24 | 3.20% | 7.80% |
| 25 - 36 | 3.20% | 7.85% |
| 37 - 48 | 3.20% | 7.90% |
Fixed Deposits:
Fixed deposits are a type of investment offered by banks and other financial institutions that provide a fixed return over a set period of time. They are considered a relatively safe investment as they offer a guaranteed return, making them suitable for beginner investors who are risk-averse.
Investors generally consider a return of 7% per 12-month period to be a good rate of return. The historical average return of the S&P 500 after adjusting for inflation is the barometer that investors often use.
Money market funds are your best choice if you want an almost completely risk-free investment that doesn't 'lock you in' – money market funds allow you to withdraw your savings at any time. Fixed deposits are a good option if you have some money that you are absolutely sure you won't need in the near future.
Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.
4% of 10 million = R400 000. This is the maximum annual salary you should withdraw once you retire, according to the 4% investing rule of thumb. R400 000 divided by 12 months = around R33 333. This is the maximum amount you should withdraw each month to ensure your savings last at least 30 more years.
Can you live off the interest of $1 million dollars?
Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose. But let's be even more conservative.
A good salary in South Africa depends on a number of factors, including your experience, education, industry, location and lifestyle. However, according to data from Numbeo, a salary of R30,000 or more per month is considered to be good.
- Building cash flow.
- Selling a business.
- Getting a high-paying job.
- Saving and investing.
According to the report, in annual terms, you need to earn $109,000 (R2. 06 million) to join the top 1% of the wealthiest South Africans, roughly similar to the estimate of the World Inequality Lab simulator. By contrast, Monaco's entry point – the wealthiest nation in the comparison – of $12.4 million (R234.
What is the 4% pension rule? A popular rule for pension savers is to take 4% of the value of their fund in the first year of withdrawals and increase that by the rate of inflation each year. This is supposed to last a typical retiree 30 years.
