The e-commerce industry in South Africa has experienced a boom since the start of the COVID-19 pandemic — and Black Friday was no exception….
If you are lucky enough to get a December bonus, that you haven’t already spent on Black Friday specials and you’re not deep in debt, you might actually have some money to save. Where should you invest it?
Dominique Collett, head of AlphaCode which identifies, partners and grows early-stage financial services ventures comments, “South Africans are highly indebted and those who do have money to save, don’t always know where to go to get the best returns or how to navigate the options available.
“Through AlphaCode’s members and the broader fintech environment, we’ve seen innovative entrepreneurs providing low-cost, simple solutions to encourage South Africans who are keen to save. The options below highlight some very good options,” she says.
Take advantage of low-cost investments
Franc is one of SA’s lowest-cost investment platforms.
The Franc app was built to make investing simple and affordable by giving customers access to the money market and the stock exchange with the convenience of their mobile phones and explained in a language we all understand.
Franc offers two investment options that the team has selected based on their credibility and low cost.
With no minimum investment amount through Franc, you can withdraw your money anytime without penalty and there are no hidden or complicated fees. Franc’s charges a simple 1% fee, which includes the underlying fund management costs.
Earn higher interest rates
South Africans who do save and keep their money at their bank in a transaction account, earn very low interest rates, if any interest at all. So, don’t just leave your bonus in your transactional bank account!
The website seeks to get you the highest interest-bearing savings products, based on personal requirements.
The easy-to-use comparison tool is free and provides alternatives once you’ve answered a few simple questions.
With access to over 600 different rates at 10 financial institutions, their algorithm searches and provides you with some of the best options.
Save towards your goals
Outvest, from Outsurance, offers goal-based advice and passive investments through their website and app. This combines human and digital interactions through sophisticated technology and access to financial advisors through the call centre.
Outvest’s offering includes its do-it-yourself digital front end, low fees and intelligent goal-based calculators – which guide investors on how much to save to achieve their goals.
Grant Locke, head of Outvest, explains that through their platform, “Anyone can build and manage their tailored investment plan in minutes online or using the app.
“We are low cost and use the latest techniques to help everyone make better investment decisions,” says Locke.
African style investing
Livestock Wealth is a simple way to invest in farming.
It presents new investment opportunities for the South African market where you invest your money in agricultural assets as they grow on a farm as alternatives to unit trusts and shares.
Through a web and mobile application, potential investors can buy vegetable tunnel gardens, macadamia trees in orchards, as well as cows online from R576.
Livestock Wealth has pioneered investment in cows since October 2015 and currently has over R60 million worth cows, trees and organic garden tunnels at various partner-farms.
These are managed as an investment portfolio on behalf of over 3000 local and international investors.
Perfect for stokvels
StokFella was inspired by the South African informal savings culture of stokvels, societies and umshayelwano.
StokFella makes it easier for stokvels to manage their monthly payments and claims online via a mobile phone or the StokFella website.
The StokFella Club Account earns more interest when you manage your stokvel book through it.
Stokfella offers a mobile phone app that allows peers to collectively set money goals, save, manage, communicate and be more efficient in growing their money.
Featured image: AlphaCode head Dominique Collett
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