Personal Finance | There is an upside to higher interest rates | City Press

  • 📰 City_Press
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 72%

Canada News News

Personal Finance | While borrowers are struggling with the ever-increasing interest rates, the increases have been a bonus for savers who are getting better returns on their bank deposits. Are you a saver? What has your experience been?

Normally the longer the investment period, the higher the rate the bank is prepared to pay you to keep your money invested. Yet, for example, Nedbank is paying a nominal interest rate of 9.30% over 12 months but only 8.85% over 24 months.

Most banks offer customers over the age of 55 a better interest rate. This can be as much as 50 basis points more than the normal fixed deposit rate.For example, Absa offers additional scores to customers who maintain a balance of more than R5 000 and sign up for stop orders to deposit into their savings accounts.When it comes to advertised interest rates the bank is offering, it can be confusing, especially the actual interest rate being offered.

The interest is then either reinvested or transferred to your savings account. The annual effective rate is the interest rate compounded monthly over 12 months if you did not draw the interest out of the account each month.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 7. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Personal Finance | Easy access funds with high interest | City PressPersonal Finance | Money market unit trusts and income funds are alternative interest-generating investments that investors could consider, especially if they want flexibility to access those funds, writes Maya Fisher-French.
Source: City_Press - 🏆 7. / 72 Read more »

THE FINANCE GHOST: Avoiding the bogeysInvesting is like golf, where every single shot contributes to the overall score and a disastrous hole can easily ruin an entire round
Source: FinancialMail - 🏆 20. / 63 Read more »