Standard Bank offers a lot of investment accounts. Among these is a Money Market account. This is an overview of how the Standard Bank Money Market account works.
What is a money market account?
A money market account is very similar to a savings account, there are just some minor differences. Most money markets accounts have minimum deposits and are offered by banks and credit unions. You are able to make additional deposits and withdrawals. The cash is available almost immediately or after a certain amount of waiting period. With Standard Bank, it’s available immediately.
Interest rate from money market accounts can sometimes be more or less than interest rates on a traditional savings account. It mostly depends on which bank or institution is offering it.
How does it work?
The Standard Bank Money Market Select investment account has a minimum deposit of R100k, this means that you can’t open the account with less money. Although you have immediate access to your funds, you won’t earn any interest as soon as your balance is less than R100k.
You can earn an interest rate of up to 4% with this account, here is a complete table of interest rates for this account. The best thing about this account is that there are no monthly admin fees. Monthly admin fees can eat up into your interest.
This is not a transactional account, meaning you won’t be able to buy things like airtime and electricity with this account. However, you will earn interest on a monthly basis, you can transfer this interest to any account you want.
You may have to pay cash deposit fees if you deposit your money through an ATM. However, you should be fine if you make an EFT from your main account to this account.
As a side note, I would like to mention that TymeBank offers an interest rate of 7% generally and up to 8% if you receive your salary through TymeBank. With no minimum deposits, on a normal savings account.
Conclusion
This was an overview of how the Standard Money Market Select account works. Do you have any thoughts or questions? Comment below.
