Do EE or Absa have a money market equivalent with compound interest that doesn't require 250k upfront?

[carolvdmerwe]

Currently at absa and EE.

My personal investments have not been that great (up about 20% but that's over like 7 years), so I kinda want to switch to something a bit more guaranteed with less ups and downs.

Something with compounding interest.

 

[vancouverguy]

@carolvdmerwe What were your personal investments in?

S&P would have been up well over 120% in that time in dollar value

 

[carolvdmerwe]

@vancouverguy My personal equities portfolio is up 22% and it's biggest contributors are capitec and shoprite.

My tfs are up 39% and does indeed have a fair amount of s&p.

Then my usd is -7% and that is the biggest contribution to my EE account. It's highly indexed on tsla which - 'before we knew Elon was crazy'. I think tsla still has some upside as all ice manufacturers are cutting back. But I think I'd rather be in BYD, unless tsla lands fsd for real.

 

[vancouverguy]

@carolvdmerwe So I think the rule to learn here is that diversified equities win in the long term, not individual company picks based on speculation.

Absa has 8.6% cash invest account that needs only R100k

 

[carolvdmerwe]

@vancouverguy Yup big lesson. Though if I had picked nvidea for example...

 

[princessbychrist]

@carolvdmerwe power of hindsight

 

[spiritualchristian7]

@carolvdmerwe Best bank interest rates are all shown on this website: https://www.ratecompare.co.za/latest-rankings
I'm partial to SA Retail bonds since they government guaranteed.
EE offers a range of income funds that offer good interest rates but are a little more risky than Money Market. Their rates are not fixed, so you can't be sure what you will get upfront. At the moment, it's +-9%. They are listed under the unit trust tab as income funds. There is no minimum.

 

[carolvdmerwe]

@spiritualchristian7 Thanks I'll have a look!

 

[cami777]

@carolvdmerwe Nedbank pays 8% with 24 hour notice works great. Capitec also good

 

[alfiano]

@carolvdmerwe NinetyOne Diversified Income or Sygnia Enhanced Income on EasyEquities gets you 1% above money market with practically no risk of capital loss.

 

[williamt]

@carolvdmerwe Google Absa Cash Invest Tracker:
Get a rate of up to 9.05%* p.a. with a Cash Invest Tracker

 

[de]

@carolvdmerwe If you just leave your money in EE without investing it, you get paid interest on it. However, I'm not sure if they have a plan for a fixed compound interest. Most banks offer a "save for me" account that has a low interest rate that compounds monthly.

 

[evollanrete]

@carolvdmerwe Fedgroup offering 9.9% via financial adviser for 5 years guaranteed. Have full access to interest at anytime.

 

[faith4l]

@evollanrete Is this just not a proxy for government bonds at a reduced rate?

IIRC, RSA Bonds, nominal is sitting at 10.75% currently for 5 years.

 

[evollanrete]

@faith4l No. No Goverment bonds are held in the structured portfolio.

 

[faith4l]

@evollanrete Its an interest bearing investment right - with a nominal return of 9.90%?

Sorry, proxy was bad choice of words here. I meant they offer you X rate and they can essentially take your money and just buy bonds at a higher rate that is also guaranteed in terms of managing their risk. Although technically this is not what they do in terms of 1-1 basis, but my comment was more in line that it can be as simple as that and there is more competitive options available atm.

 

[evollanrete]

@faith4l Unlike RSA bonds you can access the interest at anytime with Fedgroup. Fedgroup will allow you to choose how much you want when you need it. Based on my research RSA bonds your choice is made upfront. For a slightly lower return you get more flexibility. The flexibility I have found wins over 90% of my clients versus RSA bonds. I also find clients don't trust government bonds.

 

[peggys]

@carolvdmerwe How old are you? Interest is for retired people or for an emergency fund. You have just chosen the wrong funds.

S&P and Nasdaq are up over 120% in those 7 years.

But yes EE has government bonds and income related ETF’s.

 

[ngav3]

@carolvdmerwe EE has money market unit trusts that you can buy with no lower limit.

 

[living2bme]

@carolvdmerwe Checkout Standard Bank.