Standard Bank has developed an entry-level savings product aimed at encouraging greater savings among all income groups in South Africa.
Name of investment:
PureSave.
What it is:
A card-based savings account with no monthly management fee.
How it works:
You need R50 to open and sustain the account. You can deposit or withdraw money and make inter-account transfers. You cannot use the account for electronic account payments, debit orders and stop-order payments. PureSave accounts can be opened at Standard Bank branches, on the bank's website ( www.standardbank.co.za) and via the bank's customer contact number (0860 123 000).
Who should invest:
Anybody who wants to start saving money.
Risk:
Money invested in a bank account carries the lowest risk of all investments. You stand to lose your money only if the bank collapses.
Minimum investment amount:
R50 is needed to open the account and you need to leave R50 in the account to keep it open.
Minimum investment term:
There is no stipulated investment period, which means you can leave money in the account for as long as you like and can make withdrawals whenever you like.
Interest paid:
The interest rate is 2.5 percent a year on balances up to R999, and 3.75 percent for balances of R20 000 or more. Interest is calculated on daily balance and is paid monthly into the account on the first business day of each month.
How to open an account:
You need your identity document, an opening deposit of R50, a utility bill as proof of your residential address and, in the case of a minor, a letter from a parent or guardian. No credit reference checks will be made. Proof of employment and confirmation of salary are not required.
Costs:
Unlike most savings accounts, you will not be charged monthly management fee, but transaction fees will be charged. Cash deposits at branches and via ATMs cost R3.40 plus 0.9 percent of the transaction value.
This means a deposit of R100 will cost you R3.40. Accountholders will get two free cash deposits a month at any Standard Bank ATM. Cheque deposits into the account are free of charge.
The cost of withdrawals depends on whether you use an ATM or transact over the counter, inside a bank branch.
An ATM withdrawal is the cheapest option and costs R3.40 irrespective of the sum withdrawn.
Over-the-counter withdrawals, on the other hand, will cost a flat rate of R26.50 for each withdrawal.