I say this as a concern that even through the
economic downturn, everyone still has to get
their money working for them to help gain
more income in their households no matter
how small or big.
South Africa is home to world-renowned
banks and other major financial institutions
registered with Financial Service Board, which
we all have access to. These financial institutions are places to invest with.
Listed:
ABSA
FNB
NEDBANK
CAPITEC
STANDARD BANK
BIDVEST BANK
INVESTEC
RMB
These above mentioned financial institutions
offer a variety of products in investments and
are a good starting point to investing.
There are two kinds of investors in life namely:
Passive investors and
Active investors
Passive investors
These are investors who rely on interest rates
from financial institutions to grow their money.
You can invest an amount of about of R10
000 in an interest bearing account at a rate of
10% for 5 years. This means that the growth in
your investment for the first year will become
R1000. When taking the cumulative amount
for the next year it will be R11 000. Investing
this R11 000 again at 10% will grow your investment to R12 100 in the second year. This can
keep growing your investment but you are
also under the risk of fluctuating markets.
Active investors
Active investors are people who make their
money for themselves; they are actively monitoring the performance of shares, market
rates, and indices. Being an active investor
means that you are taking the responsibility
to monitor and take care of your own money
and wealth. You invest your money for yourself and no one else makes decisions with
your money. This investment process is recommended as this keeps a person aware of their
investments and also on track of their wealth.
Most people feel that this is risky and indeed
it is a risk to take through, but with the right
knowledge and the right choice of investment it will make you a wealthy individual.
Financial investment options:
When making investment choices, it is advisable to conduct thorough research and consult with accredited financial advisors. Below is
a list of some of the options you can consider.
32 Day interest accounts
All major banks host an account which allows
you to invest from as little as R500 for an uncertain period of time and allows for withdrawals within notification of 32 days prior. This account is a long-term savings option as you do
not freely have access to this account unless
you make a trip into a branch 32days before,
which can be somewhat of a drag. The interest on this account depends on market rates
which are set by your bank of choice. Now
this can be most ideal for the start-up investor as you have access to the account within
that 32 day timeline period.
Fixed deposits:
Fixed deposits are also a form of long-term investments that help people save money. You
do not freely have access to this account but
you can make a withdrawal at the branch
once the fixed term has lapsed. There is a fixed
interest rate that is set between you and your
bank by the time you invest in a fixed deposit.
This account has a minimum lump sum investment ranging from R15 000 upwards. This is for
the moderate investors who can live without
touching that amount for that certain period.
Money market accounts:
These are accounts that are based on the
market rate. You invest a minimum sum of
money and the interest rate on this account
is dependent on the rate for the day, this is
a rather good and bad investment option
as the interest rate is never stable. You can
either make a huge profit one day and the
next make a huge loss. If you are the adrenalin junkie in passive investment options, this is
where you need to be investing.
Listed above are three major options that are
considered for investing with financial institutions. For more prospects on suggested financial institution investment products please feel
free to visit the financial services board website to have a full view of registered financial
institutions in the different fields ranging from
insurance policies, investment products and
registered stock market exchange brokers.
This will give full insight in all companies that
you can choose to deal with who are registered.
Let us come together to build and maintain
a sound financial investment environment for
ourselves, families and also for our country.
Visit: www.fsb.co.za