The interest rate you receive on your savings account will affect your future wealth. A lot. For example, if you have cash in a savings account that earns 3% and you move it into a money market account earning 10%, you will effectively double your wealth in ten years. That’s the incredible power of compound interest.
That’s easy to say, but how do you actually secure the highest rate? You obviously need to compare all the accounts that meet your savings preferences and find the account that offers the highest rate. But you may also want to adjust those preferences to ensure you are eligible for a better return on your cash investment.
1. Be over 60
Ok, this isn’t really something you can control. But the important thing to bear in mind is that many banks offer preferential rates to mature investors. Different banks have different thresholds for these improved rates (for example, some banks may offer preferential rates for over 55s) so it’s important to compare all savings accounts for which you’re eligible. That’s why the My Treasury Savings Optimiser considers your age when determining the account that offers you the highest interest rate.
2. Save more, earn more
You can usually get a better rate by investing a larger amount of money. That’s because accounts that pay more interest tend to have a minimum initial deposit. That may be R1,000 or R10,000. Many accounts that offer really impressive rates have minimums of as much as R100,000. That’s why it’s important, when comparing savings accounts, to search with all the cash you have available to save. It’s a great way to find the best savings products for which you are eligible.
3. Set a fixed saving period
If you don’t need to access your cash immediately, you can often get a better rate by setting a fixed notice period on your savings. In general, the longer the fixed period, the more interest you’ll earn. (Pro tip: play around with the My Treasury results filter. You may find you can get a great rate with a shorter notice period.)
None of these tips mean anything if you don’t apply for the right product
You could be 70 years old, have a million rand to invest and be happy to lock your money away for a decade. If you don’t put your cash in the right account, you’re effectively losing money.
Whether you’re a student or a pensioner, beginning your climb up the corporate ladder or buying your third holiday home, the free My Treasury Savings Optimiser will find you the highest returns on your cash savings in an instant.
It’s so easy to put your money to work. Simply enter your savings preferences, and the My Treasury Savings Optimiser will find you the savings account that offers you the highest returns. Because there’s a wiser way to save.