• TymeBank has announced a change to the amount of interest that a customer can earn per annum via its GoalSave offering.
• They can now earn up to 10 percent per annum, up from the previous figure of 8 percent.
• There are, however, a few conditions to earn the new amount.

TymeBank has announced a change to its interest rates that may be worthwhile taking note of for those planning to save. This as the digital-first bank is increasing the interest rate on its popular GoalSave account to 10 percent per annum, which is up from the previous figure of 8 percent.

There are, of course, a few things to take note of if you plan to make the most of this change, which takes effect from today (1st February 2023).

Here TymeBank explains that GoalSave is a targeted savings account that is accessed via the financial institution’s EveryDay Account, so the main account holder needs to be 16 years or older. Furthermore, the interest rate is not linked to the repo rate and the overall deposit cannot exceed R100 000.

It does, however, have the advantage of making access to your funds immediate.

“This is a very good option for salaried workers, wage earners, retired individuals, entrepreneurs and grant recipients – even students who receive a regular allowance can benefit. This could be someone who owns property and gets rental income paid monthly into their account – or someone who receives a monthly pension payment. If the amount is deposited into a TymeBank account every month at a similar time, they will be eligible to receive 10% interest on their savings,” Cheslyn Jacobs, Chief Commercial Officer, regarding the change.

As for the different milestones, TymeBank points out that you will start earning 4 percent interest on your savings from day one, 5 percent after 30 days, and 6 percent from 90 days onwards. If you withdraw your funds and give 10 days’ notice, the effective rate increases to 7 percent.

If your salary (or equivalent) is paid into your TymeBank account, and you give 10 days’ notice on a withdrawal, you’ll get an additional “income kicker” that takes your interest rate to 10 percent.

Lastly, for those worried about their savings, the institution points out that it has a full commercial banking licence and meets all the standards set by the South African Reserve Bank (SARB).

You can find out more about GoalSave here.