This little piggy went to market

AFRICAN Bank is urging people to use piggy banks to save money as July is National Savings Month.

Alfred Ramosedi, African Bank group executive, sales and marketing, said, “By dropping just two or three coins into a piggy bank each day – let’s say around R12 in loose change – you can save up to R360 per month and R4 320 per year.

“The only negative to saving money in a piggy bank is that you lose out on the interest you would get if you deposited the same amount of money into a bank each month.”

Ramosedi, however, pointed out that the easiest and safest way to save money was to deposit it in a bank adding that piggy bank savings were a great way to start.

“Remember too that saving takes discipline, so choose your savings account wisely. There are various types of savings accounts available and each offers different interest rates and other benefits,” said Ramosedi.

He said short-term savings accounts were the easiest and most affordable as they paid interest on even the smallest balance. Ramosedi added that one needed as little as R500 to open a savings account.

He suggested opening a notice deposit account as the best way to protect savings from impulsive withdrawals. “The minimum amount needed to open this account is R500, the monthly deposits are from R100 and you must give the bank at least seven, 32 or 90 days’ notice before being able to make a withdrawal. There are no accompanying fees, charges or commissions on deposits attached to these savings products,” said Ramosedi.

He warned savers to desist from the habit of emptying their piggy banks and urged them to attach goals to their savings. “Feed it. Tell yourself that you are trying to grow your piggy bank and, therefore, it needs to be ‘fed’ every day. So forget that chocolate you would have bought with your loose change and feed your piggy,” said Ramosedi.

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