DO you know what lazy money is?
Well, you should because there’s about R295 billion worth of lazy money in Mzansi.
This is money in a transactional account that doesn’t earn any interest. It just sits there.
Why would anyone keep money in an account that doesn’t grow?
The answer is lack of knowledge.
Capitec conducted a number of polls towards lazy money and found that 86% of participants don’t know what lazy money is.
A missed opportunity, if you consider that if this money earned just 4,75% interest per annum, this would put over R14 billion back into their pockets.
The research also found that:
, 40% don’t have a savings plan;
, 20% don’t even know what a savings plan is;
, 59% of people with a savings plan don’t know how much interest they are earning.
Francois Viviers, Capitec’s marketing and communications executive, said this shows people are missing opportunities to grow their money.
And to push you to do something about this, the bank is calling on everyone and the country’s banking industry to “#SayNoToLazyMoney”, a hashtag that trended on Twitter during the month of July.
Say no to lazy money?
- The 20% who don’t know what a savings plan is and the 40% who don’t have one:
A savings plan is a savings account at a bank, dedicated to a specific savings goal, like a holiday, studies or starting a side hustle. Savings plans generally offer higher interest rates than transactional accounts.
Make the most of your savings plan and pay yourself first by transferring some of your money into it at the beginning of each month.
- The 59% who have a savings plan but don’t know how much interest they earn:
Not all savings plans are created equal. It’s important to check the interest you will earn, as well as speak to your bank about the savings plan that suits your goals.
Apart from the interest you can earn, also check your bank statement to see how much you pay each month in bank fees.