# General Business Category > Business Finance Forum >  Best short-term investment?

## Beancounter

I have perused the banks' interest rates on various savings options and noticed that none of them offer products where you could earn close to (and never more than) the current inflation rate.

So you have a bit of spare cash lying around each month and want to earn some decent growth on it. You don't want to invest in long-term products as you will need some of it for e.g. paying provisional tax twice a year, paying your membership fees annually etc.

Where to put your spare cash to earn the best interest and yet have access to it within at least 30 days?

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## Houses4Rent

What were your findings? Who pays interest close to inflation?

I am parking some funds in Coronation Jibar. Daily availability and around inflation.

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## wynn

On the radio I hear an advert by Old Mutual where they say if you don't get more than 13% they don't charge you admin fees??

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## Beancounter

> What were your findings? Who pays interest close to inflation?
> 
> I am parking some funds in Coronation Jibar. Daily availability and around inflation.


I looked at FNB. Their 7 day notice account if you invest more than R50k earns around 5.35% - 5.45% depending on the term of investment. Still not close to inflation so your money doesn't grow. If you use some funds and the balance dips below R50k you earn no interest at all. Still better than the 30 day notice account that renders 4.25% for investments up to R50k.

And I think the Old Mutual fund is aimed at long term investment that doesn't allow withdrawals.

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## Mike C

Capitec Bank is 4.4% on amounts less than 10,000 and 4.5% on amounts 10,000 and over.  This is their normal savings account.  No notice required for withdrawal. R5.00 monthly Fee.

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Beancounter (07-Aug-14)

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## Houses4Rent

Here we have it the answer from Nedbank:

"An investment product is linked to prime.  A transactional product (Go Banking) such as a Current account is not linked to Prime and the rate changes are at the discretion of the bank."

So they make sure that any prime drop gets passed on the next day and any prime raise much later or never or to a lesser extend.

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## Mike C

What do you experts think of RSA retail bonds?

www.rsaretailbonds.gov.za

At the moment they are advertising 7.25% for a fixed period of 2 years with no admin fees.

One can also take out an inflation linked bond for three years, but I am not too sure that I am in agreement with what the government's declares as the official inflation rate.

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## Rafael

> On the radio I hear an advert by Old Mutual where they say if you don't get more than 13% they don't charge you admin fees??


Thats the Liberty evolve range and a certain portion of your investment cannot be accessed for 3 years.




> I have perused the banks' interest rates on various savings options and noticed that none of them offer products where you could earn close to (and never more than) the current inflation rate.
> 
> So you have a bit of spare cash lying around each month and want to earn some decent growth on it. You don't want to invest in long-term products as you will need some of it for e.g. paying provisional tax twice a year, paying your membership fees annually etc.
> 
> Where to put your spare cash to earn the best interest and yet have access to it within at least 30 days?


Have a look at Unit Trusts, you have liquidity, there are no penalty fees and you can view the performance online.

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## reuphk

7,25% with no admin fees is good.  Better than most.
Look at offshore options as well and hedge.

If you want access to immediate cash, that could be challenging.

I split my investments as follows:
1.  If I need immediate cash, I take it out of one of the bond accounts.  I earn the average 9% by a reduced bond rate having the extra cash in there, and simply take it out if I ever need it.  Easy, little cost.
2.  Take the excess cash you have and put it into a fund for a term longer than 5 years.  Tax beneficial and if offshore, better.  Since I like property and believe it to be the best investment, Property Funds have stood me in good stead with more than 18% (sometimes 30%) returns
3.  If you have stuff like credit card debt, pay that off first.  In fact, have no debt unless it is good debt i.e. investments such as properties.
4.  Did I mention properties?  :Smile: 
5.  Sorry, got sidetracked... Government bonds are good, secure investment vehicles.  It is a guarenteed return which none of the other options really give you, unless it is at ~5% (from banks)
6.  I really do have to add this one.  Add an extra payment to your bond account.  Yep, property again.  You should get at least 13% return.

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## Houses4Rent

I agree, your best short term return is usually your own bond account (property). And, dare I say, your best long term return is usually property.

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## hjs69

I have been Trading Live on the financial Markets for over 15 years, and there is no other way to generate growth on your money. I dont use banks, as you pay more on admin fees etc, as to I have 24hr access to my money. That is my view if you what to know more contact me, I do work at a Capital Investment Company.

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## HR Solutions

Its been a while since anybody posted here.  Does anyone have more advice on investments for 2016 ?

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## bones

right now not even property 
is doing well unless you own 
it

gold i guess if you can afford
it even diamonds isnt doing 
so hot 

does anyone know anything 
about high risk stock trading 
i was told that you can earn 
a lot or lose it all in 1 day 

i guess you can give that a 
bash

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## LauraPalmer

Totally agree. Short term rentals promise you decent returns - about 5-7% yields. Hiring a management company helps to avoid problems with finding new tenants. Its service costs 20−25% of the total rental revenue but the expenses will be rewarded with higher occupancy rates. The best option is a one-bedroom apartment somewhere in the city center popular with tourists.

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JessaFr (17-Oct-16)

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## Dana

The best place to park your surplus money is in your bond. Arrange with your bank for a access bond and dump all the extra cash into your bond. This way you reduce the interest that you have to repay and there is no tax payable to SARS.

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## CallyA

Hi, I own properties and am fortunate enough not to have a bond. 
I have proceeds of a sale sitting in a trust account with my attorneys. I earn 6% and they charge 10% of that 6%. 
It was always intended as a short term solution but it has been 18 months now. 
I’ve been looking for an additional investment property for the past 12 months but haven’t found what I’m looking for. Hence needing immediate access to my funds.
Any suggestions?

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## Questor

Hi Beancounter

Following the recent Viceroy attack on Capitec, I withdrew 50% of my cash from Capitec and have been advised to consider the Allan Gray Money Market Fund.

Check it out and ask around.

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## PlatinumWealth.co.za

Good thread to read regarding ETFs (especially to limit overexposure making your losses during a Steinhoff, Capitec scenario a little lower.)

https://platinumwealth.co.za/forum/T...-ETF-portfolio

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CallyA (08-Feb-18)

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