Author Topic: Is African Bank Safe - Fixed deposit  (Read 39889 times)

DeonC

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Is African Bank Safe - Fixed deposit
« on: March 07, 2017, 03:47:34 pm »
Hi Al

African Bank is now offering 10.50% on Fixed deposit. I am very Interested. But how safe is it?

The SARB owns 50% of African
6 Banks Hold 25%

Thanks

Hamster

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Re: Is African Bank Safe - Fixed deposit
« Reply #1 on: March 07, 2017, 04:26:03 pm »
Erm.... O.O

/googles

Hamster

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Re: Is African Bank Safe - Fixed deposit
« Reply #2 on: March 07, 2017, 04:28:13 pm »
https://www.africanbank.co.za/fixed-deposit.html#

Interesting. Suppose they're doing it to get customers. Not sure if I'd want to be locked in for 60 months though.

RayRay

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Re: Is African Bank Safe - Fixed deposit
« Reply #3 on: March 08, 2017, 07:10:34 am »
Not bad. I currently use capitec for short term fixed. 7.75% on 7 months. Minimum ivestment amount is a lot higher though.
https://www.capitecbank.co.za/global-one/save/single-deposit-fixed-term-savings-account
But to respond to your question, I have no idea how safe AB is.

jaDEB

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Re: Is African Bank Safe - Fixed deposit
« Reply #4 on: March 08, 2017, 07:48:09 am »
Rather ask will you put your life savings in an African bank account.
jaDEB

If it scares you, it's a sign you need to do it

DeonC

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Re: Is African Bank Safe - Fixed deposit
« Reply #5 on: March 08, 2017, 09:28:25 am »
Jip. Planning on putting more than half of my all my money in there. R1m. Thats why I am a bit cautious  ???

Capitec offers 10.05%
Nedbank Offered 9.56%

All on 60 months.

I have some ETF's, and to be honest I dont think any ETF will provide 10% p/a for the next 5 years. Or am I wrong?

jaDEB

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Re: Is African Bank Safe - Fixed deposit
« Reply #6 on: March 08, 2017, 10:28:35 am »
sO u WiLL Be PUttING R500,000 oR R1,000,000 (NoT To SURe as PER note) IN A bAnK ThaT HAS JUSt BeEN RescUeD.  :question: I would understand IF THey loaned YoU a R1m.
jaDEB

If it scares you, it's a sign you need to do it

Hamster

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Re: Is African Bank Safe - Fixed deposit
« Reply #7 on: March 08, 2017, 10:43:28 am »
Jip. Planning on putting more than half of my all my money in there. R1m. Thats why I am a bit cautious  ???

Capitec offers 10.05%
Nedbank Offered 9.56%

All on 60 months.

I have some ETF's, and to be honest I dont think any ETF will provide 10% p/a for the next 5 years. Or am I wrong?

Try this: https://mytreasury.co.za

With that amount of money I'd rather phone Investec. FNB can give you 9.15% + you won't have to convince yourself every day for the next five years that your money is safe.

marguerittereed

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Re: Is African Bank Safe - Fixed deposit
« Reply #8 on: March 08, 2017, 11:03:13 am »
Another option is Coronation Moneymarket Fund

DeonC

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Re: Is African Bank Safe - Fixed deposit
« Reply #9 on: March 08, 2017, 11:12:11 am »
Thanks Guys, following up on all the recommendations

As you can see, from the post, I am still a newbie, when it comes to money and investing.

Any further advice will be appreciated.

On a Side, How safe is it, to mention amounts on a public Forum like this?


DeonC

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Re: Is African Bank Safe - Fixed deposit
« Reply #10 on: March 08, 2017, 11:19:02 am »
The best option looks to be Nedbank, with 9.56%

That should be safe. I hope.

PlatinumWealth.co.za

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Re: Is African Bank Safe - Fixed deposit
« Reply #11 on: March 08, 2017, 11:37:10 am »
I will not touch them
www.PlatinumWealth.co.za <- South African Investment and Finance forum.

DeonC

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Re: Is African Bank Safe - Fixed deposit
« Reply #12 on: March 08, 2017, 11:47:25 am »
Thor>>

Will not touch African B, or Nedbank?

gcr

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Re: Is African Bank Safe - Fixed deposit
« Reply #13 on: March 08, 2017, 12:02:01 pm »
Jip. Planning on putting more than half of my all my money in there. R1m. Thats why I am a bit cautious  ???

Capitec offers 10.05%
Nedbank Offered 9.56%

All on 60 months.

I have some ETF's, and to be honest I dont think any ETF will provide 10% p/a for the next 5 years. Or am I wrong?
I bought my STXIND in June 2013 and they have shown a capital appreciation on the initial investment of 45.4% to date, plus over and above that there has been a reasonable capital stream so ETF can give you reasonable returns and your funds are readily accessible under some binding conditions - notably tax regimes
I think funds with the Banks are pretty much guaranteed returnable as if any of the big 4 banks had a glitch then the others would rally around to assist as the damage of failure would be devastating on the banking (including SARB) fraternity.
Also investing for 60 months is not too long a period if your need is to live off this investment - but then you need monthly interest which gives you a slightly lower interest rate. People need to weigh up whether it isn't better to take interest monthly and if not needed then invest in another investment instrument to gain more interest or capital gains/or both, in preference to taking interest at the end of the 5 year period.

Interest rate movements at the moment are a pretty hot topic as some analysts say rates will increase whilst others say they will fall - so who you believe is most difficult   
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

DeonC

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Re: Is African Bank Safe - Fixed deposit
« Reply #14 on: March 08, 2017, 12:39:34 pm »
Thanks gcr.

Let just have a quick comparison:
ETF: 50% over 5 years
Initial investment R100 000
5 years Later: R 150 000

Fixed deposit at 9 p/a%
Initial investment: R100 000
5 years later: R 153 000

Fixed Deposit is less risk, than ETF. Therefore according to the above it should be the better investment. Less risk with similar returns?