Kena Setshogoe, African Bank Group Executive for Customer Engagement, advises members of the community to think about how quickly 2019 has come and gone, and how making the right savings or investment choices this coming year could yield returns just as quickly.
He explains that investing is not difficult. It is for everyone and a good way to build wealth for the future.
“Many banking customers believe investing to be complex because the term ‘investments’ often conjures up images of excessive wealth and specialised banking services, which are hard for the general banking customer to access,” Setshogoe says.
It sounds fancy, yes, but it is not complicated or out of the reach of any bank customer.
“Things like tax-free investment or opening an investment account are within everyone’s grasp; it is simply a matter of consulting with the right bank for the right advice,” Setshogoe says.
What exactly is investing?
According to Setshogoe, it is putting money into something that will earn you a good interest rate and a good return later in life. Setshogoe says at its simplest, think of a piggy bank as an investment account. Regular contributions into the piggy bank will make it full and enable the owner to break it open one day and reap the reward of diligent saving.
What sets investment banking apart from a piggy bank is that a piggy bank will not earn its owner interest – choosing the best investment options at the right bank will.
“There are many ways to build wealth; a variety of bank account options each with their own benefits. The best are those that suit your needs with interest rates being one of the most important things to look at before deciding,” Setshogoe says.
He elaborates on why interest rates matter when it comes to saving and investing; in fact, Setshogoe says interest rates are the most important thing about a savings or investment account.
“You cannot grow your money quickly with a low interest rate. And while many people think a savings account is just somewhere to stash money so that you don’t use it until you absolutely need it, getting the best interest rate is important.
“This goes for investment accounts, like a fixed deposit, notice deposit, access accumulator or tax-free investment account.”
He states that saving requires discipline and a good interest rate is a motivator to keep adding to an investment for future gain.
According to Setshogoe, other considerations when looking for the best investment options include monthly fees, opening deposit, automatic transfers, mobile banking options and easy withdrawal.
“Saving and investing require discipline for which you want to be rewarded. This is why it is in your best interest to seek out an account which will offer you no monthly fee, allow you to easily and automatically put money into the account on a regular basis, give you the convenience of online and mobile banking and give you access to your money when you need it most,” concludes Setshogoe.