I was in the bank recently and while I was waiting in the queue I was gob-smacked by how many people (mostly elderly) were making withdrawals or giving notice on their 32 day notice accounts.
Consider the good (old fashioned) 32 day notice account: Your money is locked away for at least 32 days…in the hope that you are going to get a decent interest rate. Think again. The “big four” banks are currently offering the following interest rates on an investment of less than R10000:
| Bank | <R10k |
| ABSA | 6% |
| FNB | 6,00% |
| Nedbank | 6,35% |
| Std Bank | 4,20% |
Why would anyone make use of such an account when you can get more than 7.5% from a money market unit trust account where there is no upfront fee and you can access all the money at 48 hour notice? And how can anyone at the bank actually advise clients to still make use of these accounts?
