Capitec bank has a range of investment products, some of these have a minimum deposit. Let’s look at Capitec products that you can invest in for just R1000.
The short answer is yes, you can invest R1000 at Capitec and earn interest from it. The interest you earn will likely be little but you will earn it nonetheless.
Savings account
Capitec has a savings account, your normal transactional account also acts as a savings account. You will earn interest by simply letting money stay there. The main problem with this is that it’s easily accessible and earns an incredibly low interest; just around 2%.
Flexible savings account
This one works almost exactly the same as your main savings/transactional account. The interest rate is the same and it’s also as easily accessible. The main difference is that it is stored under a different account; which makes it easier to manage. You also won’t confuse it with your regular finances.
Tax-free savings account
Naturally; you pay tax on the interest that you earn from your investments. But not when you have invested in a tax-free savings account. You can invest a maximum of R36 000 per year and R500 000 lifetime limit. If you contribute over these limits then you will be taxed at 40% on those extra contributions.
There is no minimum deposit and you can earn an interest between 2.25% and 5.43%. Depending on how much money you have invested.
Conclusion
Capitec also offers a fixed term savings account but it requires a minimum of R10 000 and is fixed for a period of time; usually between 6 and 60 months. Do you have any thoughts or questions? Comment below.
