Despite all the money that the banks spend advertising their savings products and all the claims to have no fees or commissions, I would not put a cent into any of their money market or savings products. If you want a money market account then you need to use a unit trust money market fund. They are safer, more transparent (cheaper) and give better returns than the bank money market accounts:
Safer – the money is held in a trust and you own units in the trust (remember Saambou or African Bank?)
Better returns – the fund generally invests billions and is able to secure a better rate than your single investment at the bank
Transparent/Cheaper – each fund publishes its annual fee and these range from 0.25% to about 0.5%. As a rule, the lower the fee, the better the return you will receive.
Expected return – currently 8%+ pa (after fees)
Unfortunately, most unit trust money market accounts want big initial deposits and/or very high monthly debit orders…but not the Gryphon Money Market Unit Trust Fund. They accept an initial investment of just R2000 or a R200 debit order and on that amount you will receive the same interest as someone who invests R1m. That’s the beauty of a unit trust account!
You can read more about the fund on their website and can also find the application there http://www.gryphonam.co.za/Gryphon/portfolio/the-gryphon-money-market-fund/
Below are a few of the facts about the fund…happy saving.
| Benchmark: | Short term Fixed Interest Index (STEFI) |
| Charges (Incl. VAT): | Initial 0% Annual Management Fee 0.29% |
| Minimum lump sum: | R2,000 |
| Minimum debit order: | R200 |
For the record – they also have some other great funds.
