Author Topic: Short term lump sum investment  (Read 9782 times)

yozzi

  • Full Member
  • ***
  • Posts: 157
  • Karma: +2/-0
    • View Profile
Short term lump sum investment
« on: November 25, 2013, 06:03:16 pm »
Where would you invest a large amount for a short term investment ie a fixed deposit? Looking at 3-6 months so would it be best to stick it in a bank deposit or are there any other products on the market?

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: Short term lump sum investment
« Reply #1 on: November 25, 2013, 11:37:44 pm »
If you can - invest it with a bank for 6 months, but check what interest rates you can get, I currently get 5.15% on my 6 month FD with my bank,but you may be able to get more at say Capitec - just see what you can get
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Short term lump sum investment
« Reply #2 on: November 26, 2013, 10:38:03 am »
As advised by gcr.

Check also Nedbank Rates
These:-

Nedbank MoneyTrader 

EasyAccess Deposit 

yozzi

  • Full Member
  • ***
  • Posts: 157
  • Karma: +2/-0
    • View Profile
Re: Short term lump sum investment
« Reply #3 on: November 26, 2013, 01:46:08 pm »
Many thanks guys! Capitec looks good with 5.75% for 6 mths and 6% if you keep it there for 7-9 mths

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2550
  • Karma: +47/-2
    • View Profile
Re: Short term lump sum investment
« Reply #4 on: November 27, 2013, 07:36:03 am »
Many thanks guys! Capitec looks good with 5.75% for 6 mths and 6% if you keep it there for 7-9 mths

That's not bad, pretty much the same as the inflation rate. What sucks though is even though you're not making any money (relative to inflation), the taxman will still want to take it's share of the interest at your marginal rate...

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: Short term lump sum investment
« Reply #5 on: November 27, 2013, 09:24:21 am »
Many thanks guys! Capitec looks good with 5.75% for 6 mths and 6% if you keep it there for 7-9 mths

That's not bad, pretty much the same as the inflation rate. What sucks though is even though you're not making any money (relative to inflation), the taxman will still want to take it's share of the interest at your marginal rate...
There is a rebate on interest earned and in my age category it is R31,000 p.a. so interest earned is not at marginal tax rates
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2550
  • Karma: +47/-2
    • View Profile
Re: Short term lump sum investment
« Reply #6 on: November 27, 2013, 09:38:10 am »
Many thanks guys! Capitec looks good with 5.75% for 6 mths and 6% if you keep it there for 7-9 mths

That's not bad, pretty much the same as the inflation rate. What sucks though is even though you're not making any money (relative to inflation), the taxman will still want to take it's share of the interest at your marginal rate...
There is a rebate on interest earned and in my age category it is R31,000 p.a. so interest earned is not at marginal tax rates

Ah yes, i forgot!

Bloodburner9000

  • I've just arrived
  • *
  • Posts: 12
  • Karma: +0/-0
    • View Profile
Re: Short term lump sum investment
« Reply #7 on: February 14, 2014, 11:53:20 am »
Rebate or no rebate, one should be taxed on actual earnings and not nominal earnings. Off course that would never happen. :wall:

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Short term lump sum investment
« Reply #8 on: February 14, 2014, 12:47:43 pm »
Rebate or no rebate, one should be taxed on actual earnings and not nominal earnings. Off course that would never happen. :wall:
What do you mean ?

There is a rebate on interest earned and in my age category it is R31,000 p.a. so interest earned is not at marginal tax rates
>65 =R34500 (2013/14 tax year)

Neil

  • I've just arrived
  • *
  • Posts: 40
  • Karma: +3/-0
    • View Profile
Re: Short term lump sum investment
« Reply #9 on: February 18, 2014, 04:27:11 pm »
Coronation Strategic Income Fund
Disclaimer:The views/opinions expressed in this post are that of the writer and are not to be interpreted as advice, nor as a indication to buy/sell any investment or equity. The writer will not be held liable for any profit or loss resulting from reading of this post by the reader in any form.