Let your money do the hard work despite the pandemic, says Standard Bank
Two Standard Bank investment accounts can help SA households save in these distressing times
Times are tough for SA households after more than a year and a half of coronavirus-induced economic and social upheaval – and the disruption already caused this week after the Omicron variant of Covid-19 was reported in SA has shown that even more economic distress lies ahead.
According to the SA Reserve Bank’s Quarterly Bulletin, gross saving in households as a percentage of nominal GDP declined to 2.2% in the second quarter of 2021, from 2.4% in the first quarter.
The pandemic has put additional pressure on consumers in SA’s tough economic landscape, and the resultant negative returns on investments have added to these challenges. More and more individuals are looking for better investment options.
“The past year and a half has been particularly difficult for South Africans,” says Zanele Mbere, head of unsecured lending portfolio management (personal banking) at Standard Bank.
“In many cases, consumers have to balance variable income, increased expenses, lower savings returns and lower levels of confidence. Consumers who could save or want to save are looking for investment opportunities that will allow them to make higher returns at lower risk. They want their money to work harder for them.”
Standard Bank’s Flexi Advantage Investment Account and Fixed Deposit Investment Account offer low-risk opportunities with higher potential returns for risk-averse investors.
Here are some of the benefits of each account:
Flexi Advantage Investment Account
- Invest one-off for a fixed period and earn fixed rates. Interest is calculated on your daily balance amount and is paid monthly — the higher the balance, the higher the interest rate.
- Draw and replace up to 40% of your opening deposit at any time. Get free transfers between your Standard Bank current account and your Flexi Advantage account.
- Choose to invest for three, six, nine or 12 months, with the option to extend.
Fixed Deposit Investment Account
- A fixed-deposit investment account that pays interest of up to 10.55% effective interest applied at maturity. You will earn interest on your investment at the fixed rate.
- To get started, you need to invest a minimum of R1,000.
- Investors over the age of 55 in some instances can qualify to get an extra 0.5% for 12 months. Terms and conditions apply.
“An investment account is one way of maximising your hard-earned money and offers a good place to store your money without restricting access to your funds,” says Mbere.
“Investment accounts store and generate value, keeping your initial investment safe while leveraging the miracle of compound interest at attractive rates. You can enjoy the peace of mind while letting your money do the hard work.”
You can apply for a Standard Bank Flexi Advantage Investment Account or Fixed Deposit Investment Account by visiting your nearest branch or via internet banking, the Standard Bank app or on the Standard Bank website. All you need is your SA ID book and proof of your home address not older than three months. Non-SA citizens can apply with a valid passport and a work or study permit.
This article was paid for by Standard Bank.