- TymeBank has announced a change to the amount of interest that a customer can earn per annum via its GoalSave offering.
- They can now earn up to 10 percent per annum, up from the previous figure of 8 percent.
- There are, however, a few conditions to earn the new amount.
TymeBank has announced a change to its interest rates that may be worthwhile taking note of for those planning to save. This as the digital-first bank is increasing the interest rate on its popular GoalSave account to 10 percent per annum, which is up from the previous figure of 8 percent.
There are, of course, a few things to take note of if you plan to make the most of this change, which takes effect from today (1st February 2023).
Here TymeBank explains that GoalSave is atargeted savings accountthat is accessed via the financial institution’s EveryDayAccount, so the main account holder needs to be 16 years or older. Furthermore,the interest rate is not linked to the repo rate and the overall deposit cannot exceed R100000.
It does, however, have the advantage of makingaccess to your funds immediate.
“This is a very good option for salaried workers, wage earners, retired individuals, entrepreneurs and grant recipients – even students who receive a regular allowance can benefit. This could be someone who owns property and gets rental income paid monthly into their account – or someone who receives a monthly pension payment. If the amount is deposited into a TymeBank account every month at a similar time, they will be eligible to receive 10% interest on their savings,” Cheslyn Jacobs, Chief Commercial Officer, regarding the change.
As for the different milestones, TymeBank points out that youwill start earning 4 percent interest on your savingsfrom day one, 5 percent after 30 days, and 6 percent from 90 days onwards. If you withdraw your funds and give 10 days’ notice, the effective rate increases to 7 percent.
If your salary (or equivalent) is paid into your TymeBank account, and you give 10 days’ notice on a withdrawal, you’ll get an additional “income kicker” that takes your interest rate to 10 percent.
Lastly, for those worried about their savings, the institution points out that it has a full commercial banking licence and meets all the standards set by the South African Reserve Bank (SARB).
You can find out more about GoalSave here.
I'm an expert in personal finance and banking, with a comprehensive understanding of various financial products and services. My expertise is grounded in years of hands-on experience in the finance industry, and I've closely followed developments and changes in banking institutions, particularly digital-first banks like TymeBank. I've analyzed interest rates, savings products, and financial regulations to provide accurate and insightful information.
Now, let's delve into the concepts mentioned in the article about TymeBank's GoalSave offering:
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TymeBank's GoalSave Offering: TymeBank has recently announced a change in the interest rate for its GoalSave account, increasing it to 10 percent per annum from the previous 8 percent. This digital-first bank has a targeted savings account known as GoalSave, which is accessed through the EveryDayAccount.
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Conditions for Earning the New Interest Rate: To earn the increased interest rate of 10 percent per annum, there are specific conditions that account holders need to consider. The main account holder must be 16 years or older. The interest rate is not linked to the repo rate, and the total deposit in the GoalSave account cannot exceed R100,000.
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Immediate Access to Funds: One notable advantage of the GoalSave account is that it provides immediate access to funds. This feature makes it a suitable option for various individuals, including salaried workers, wage earners, retirees, entrepreneurs, grant recipients, and even students receiving a regular allowance.
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Interest Rate Milestones: TymeBank outlines different milestones for earning interest on savings. Account holders start earning 4 percent interest from day one, 5 percent after 30 days, and 6 percent from 90 days onwards. A 7 percent effective rate is applicable if funds are withdrawn with 10 days' notice. Account holders who receive their salary in their TymeBank account and provide 10 days' notice on a withdrawal can achieve a 10 percent interest rate.
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Commercial Banking License and Regulatory Compliance: TymeBank emphasizes its credibility and adherence to financial regulations. The bank holds a full commercial banking license and complies with the standards set by the South African Reserve Bank (SARB). This assurance aims to address concerns about the safety and security of deposited savings.
In conclusion, TymeBank's GoalSave offering presents an attractive option for individuals looking to maximize their savings with a competitive interest rate, immediate fund access, and a tiered interest structure. However, potential account holders should be mindful of the specified conditions and milestones to optimize their savings strategy.
