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      Hendrik Brand

      Definitely, if you saved R200 every month for a few years it will add to a massive total. Especially if invested.

      Thanks for reading.

    2. ghk

      Hi Hendrik
      Thanks for this analysis.
      Quick question re move from Investec to Capitec/other bank for that matter:

      If you have a home loan, is that currently with Investec?
      Think somewhere in their home loan docs it states there is an additional monthly/annual/once-off admin charge (? – must go and dust off my Investec docs and look this up) if you have your mortgage with them but dont bank with them.

      If this is true, did you consider this monthly (if it is monthly?) charge in your analysis above if you decide to keep your home loan with Investec but switch to Capitec?
      (Knowing that Investec offers up to prime minus 1 is most cases, I assume you would want to keep your home loan with them.)

      I’m also considering making the move. Still under 30, so still paying the ‘reduced’ fees but time is running out and then it’s the big league bank charges which I want to avoid!

      Thanks

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        Author
        Hendrik Brand

        Hi Ghk,

        I was in the exact same position, so I can give you my figures. With Investec, I paid R535 and had no monthly admin fee on the home loan (prime minus 0.65%). When I moved, Investec started charging me an admin fee of R60 and my bank charges with Capitec averages R31. This month my interest on the account worked out to R95. So after making the switch, I pay -R4 effectively. That is a swing of R539. Well worth the effort.

        Thank you for reading.

        1. Khulekani

          Great article. Would’ve loved to have seen a mention of African Bank as they offer the best interest rate of 5.5% on their transactional account and just like TymeBank, they have no monthly fees.

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  1. Ghk

    Great, thanks for this. I’m still on the R295 monthly fee which should increase once I hit 30.
    I’ll go check whether my home loan docs also state the 60 bucks. And do the numbers to see where I end.

    Out of interest, referring to another blog post of yours how to save, asking bank for a lower interest rate on mortgage, did Investec ever give you a reduction?

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      Hendrik Brand

      Hey Shihaam,

      The easiest option would be to switch to Standard Bank’s pay-as-you-use account as mentioned above, which I suspect will already save you some money. If you really want the absolute cheapest option, I really like Capitec. Yes, it will be a bitch to move, but it is worth the effort.

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