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According to an badysis by the Finnish savings firm MyTreasury.co.za, the saving rate of South African households comes in last place compared to the G20 countries. These are distressing news during the month of savings as it means that too many South Africans are living in debt or eating in their capital.
Source: MyTreasury
These results are consistent with the ominous picture of Old Mutual Savings Monitor: among active urban households, 40% of respondents said they did not have formal retirement savings . Thirty-two percent of respondents said they would rely on the government and 38% on their children to help them retire. The situation is probably much worse among the unemployed population.
In addition, many South Africans who manage to spread a little money do not make wise savings. While 16 million have savings accounts, they are more empty than they should be and, according to the latest statistics from the Reserve Bank, about 40% of these funds are found in accounts offering very low interest rates. [19659004] A person who has savings could earn up to 10% of his money each year and increase his wealth faster, simply by switching to higher interest paying accounts.
Since the launch of MyTreasury.co.za late 2016, the independent personal finance comparison site has enabled over 250,000 South Africans to compare their online savings options, helping them to identify the best interest rate options according to their situations and personal requirements. The easy-to-use service is free and offers users appropriate alternatives once they have answered a few simple questions. He is looking for 600 different rates in 10 financial institutions to find the best options. Users can select amounts ranging from 1,000 to 50 million rand and specify the date on which they might need money (ranging from one day to five years) and the options are constantly expanding.
Recommendations on how to save go on lifestyle changes – like bargain hunting, limiting luxury spending and the commitment to tidy up a fixed amount of money each month – tips and campaigns that are helpful in motivating South Africans to save. longer-term strategies such as setting financial goals, debt consolidation and prepayment of loans.
MyTreasury.co.za has come up with a new way to boost savings. For those who are currently saving, he suggests that they develop their wealth by investing more wisely.
Warren Kopelowitz, CEO of MyTreasury.co.za, explains, "Efficient savings can make a huge difference in your wealth. Moving your money from a call account that offers 3% returns to a fixed long-term deposit with a 10% interest rate, for example, would effectively double your estate by 10%. years! "
With much to gain from moving to higher interest rate deposits, why are so many South Africans still keeping their money in low or interest-free bank accounts? Savings are opaque and complex, making it virtually impossible to identify the best-paid savings account that best meets the needs of a person.
For example, some banks offer higher rates for the elderly.And it is difficult to find data on bank rates without comparing the rates between several banks and products.Try to find the best rate for the specific profile and savings preferences. of an individual is even more complicated and time consuming.
MyTreasury.co.za considers the personal profile of the user, including factors such as his age, to determine whether they are eligible for a rate p In the current economic climate, no one can afford to leave their money without doing anything.
"Savings accounts are a great way to encourage smarter wealth management," says Kopelowitz. "Almost everyone has a bank account, and by encouraging people to see their regular bank accounts as tools to actively generate income, we hope to make South Africans more inclined to save.This does not cost you anything to get a higher return on your money, but you have to know how to compare and where to look. "
MyTreasury.co.za is a member of AlphaCode, a club for fintech startup. entrepreneurs powered by Rand Merchant Investments. As Dominique Collett, Director of AlphaCode, explains: "Consumers need the right information to make good financial decisions." She adds that the complexity of savings products and the different structures and Interest rate calculations make it difficult to compare the options available. major problem in the growth of Sa's savings culture. "Being able to compare products to badess value is important in a competitive marketplace. MyTreasury.co.za is therefore a valuable addition to the fintech landscape as it enables consumers to make good financial decisions. "
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