While there is quite a bit of information available on how much South Africans spend on paying debt off on a monthly basis, not much is known about the spending habits of South Africans. What is clear however, is that there is a lot of room for improvement in terms of developing a savings culture in the country.
According to an article in Fin24:
“Many people like to keep a certain percentage of their savings in a bank account where it earns some interest; but they can get access to it, in case of emergencies.”
One of the reasons that people often choose high interest savings accounts is that they can earn interest, while also giving them the option of being able to withdraw the funds very easily. This is one of the advantages of having a 32 day notice account.
What are 32 day notice accounts?
32 day notice accounts are savings fixed deposit accounts. Widely regarded as one of the best known ways to save, these types of accounts are easily accessible.
Some have a minimum deposit and others have a minimum account balance.
Essentially, they are investment accounts where your money earns interest. If you need to access your funds, you need to give a certain amount (usually 32 days) of notice.
There are no monthly fees involved, so you don’t have to pay too much to own this type of account.
Interest rates tend to be more favourable than for call accounts and the more you keep in the account, the higher the interest rate.
Therefore, the longer the notice period, the higher the interest rate offered.
Savings accounts are the most liquid investments, making them quite popular among South Africans. Having a 32 day notice account not only makes it easier to save, but also increases your investments in the form of interest-earnings.