Saving vs Investing: Interview with Thopi Mhloli, Product Owner of Savings and Investments at Standard Bank South Africa
Money matters, which is why it’s imperative South Africans know and understand how they can best accumulate it. In a series of informative radio interviews, Standard Bank’s Thopi Mhloli breaks down the difference between savings and investment accounts and how South Africans can match financial products to suit their financial needs and ambitions.
The economic challenges of the day have prompted many of us to revise our spending and saving habits. At the same time, while rising inflation rates have placed pressure on people with high debt obligations, those same interest rates are working in favour of those who can and are saving. Today, most interest-bearing accounts offer more than 7% interest on money invested.
In the interviews, Thopi provides these helpful descriptions of savings and investment accounts:
- Savings accounts are for when you want to put your money away in a safe place over a relatively short-term period. For example, use a savings account to eventually pay a deposit on a house or car, or to treat your family to a fun holiday at the end of the year.
- Investment accounts, such as the Standard Bank MoneyMarket Select investment account, are long-term in nature and are designed to grow your wealth. Investment accounts enjoy higher interest rates and can offer additional benefits such as unlimited deposits and transfers.
Critically, investment accounts are subject to market volatility, and past performance does not guarantee the same performance in the future. Therefore, South Africans are encouraged to have a well-diversified portfolio, determine their appetite for risk, and engage with their financial service providers to match their money with their ambitions.
To learn more about the difference between savings and investment accounts, click here to listen to Thopi’s interviews.
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