Tax relief prompts easier bank rates

WINDHOEKSTAFF REPORTER

With government's announced income tax amendments taking effect this month, the financial sector is eagerly coming to the table to assist citizens to optimally utilise their increased spending power.
Standard Bank last week announced that, in anticipation of the new tax brackets, the commercial bank is adjusting its investment rates.
The bank has, since June 1 dropped rates on its Fixed Deposit, Call Deposit and Notice Deposit products in order to make them more competitive, and to try making investment more attractive to the broader community.
"If a customer invests with Standard Bank Namibia we are paying them better rates on the three fixed, call and notice investment products. The higher the balance the better the rates, and the longer the term the better the rates as well," Standard Bank's Manager of Liabilities, Erna Kaura, said in a statement last week.
The products, she says, would allow clients various savings options, from the short to the medium and long term.
"For your short-term savings that will cover that rainy day or unexpected expenses put your money into a 32-day notice deposit account. This offers not only good returns, but also the ability to access your money quickly when you need it," Kaura advocates.
Longer-term goals like buying a car or putting down a deposit on a first residence, she adds, would benefit more from a fixed deposit account.
"A fixed deposit gives you a good interest rate and you have to give notice when you want to take your money out and that makes it ideal for medium-term savings," she said.