Not sure what to do with your recent SARS tax refund or other large cash payout? Here’s how you can use it to work for you.
Pay off debt with the highest interest rate first, or debt that you might be close to paying off. Better yet, don’t take on unnecessary debt in the first place. If you have to choose between reducing debt or saving, reduce your debt first. Once you’ve cleared your debt, put that extra money into a savings account.
If you don’t one have yet, now is a good time to start. An emergency fund should be easily accessible and only be used in case of emergency. It can protect you from taking on credit you can’t afford if you need to pay for an unexpected vehicle or home repair, were retrenched, or have a sudden medical bill or funeral to pay for.
Tip: Don't forget to plan for irregular expenses .
Choose between a single or multiple deposit fixed-term savings account and earn the best interest from the first rand. You can reinvest the interest or transfer it to your transaction/savings account at no additional monthly admin fee.
Give your plan for life a boost with a tax-free savings account. There is no minimum deposit and you can choose any deposit amount up to R33 000 per year (single or multiple deposits).
Tip: Remind yourself what you want to achieve by saving. What are you saving for? How much do you need to save?
A savings account puts some distance between you and your money, and reduces the temptation to spend it. You also benefit from the interest, helping you to reach your savings goal sooner.
If you have friends who aren't sure also not sure what to do with their large cash payouts, help them to switch to Capitec Bank in 3 easy steps so they can also benefit from our competitive interest rates and low bank costs.
