The Savings Vault That Matters
If you have been reading the news lately, you have likely come across multiple articles highlighting the current heightened inflation rate. If you’re unaware of what inflation is, you might find this amusing quote from Sam Ewing helpful, “Inflation is when you pay fifteen dollars for the ten dollar haircut that used to cost you five dollars when you had hair”.
Outside of this quote, inflation is more commonly defined as the general increase in the price of a good or service over time. South Africa currently has an annual inflation rate of 7.40%. Now, this number may not seem like a lot, but it should raise alarm bells in your head if you fully comprehend the implications of inflation on your personal purchasing power.
The graph below shows the change in the South African inflation rate over the past 10 years. As you can see, the latest inflation print of 7.40% (June 2022) is the highest rate South Africa has seen since May 2009.
But what does this all mean?
All things equal, if inflation increases, the cost of buying your regular goods and services becomes more expensive. This means that your faithful R100 just doesn’t pack the same punch that it used to — causing what is known as — a loss in your ‘purchasing power’. This is why savings accounts have come to the fore recently, as many people are trying to earn interest on their wealth to negate the effects of inflation. Simply put, if you want to maintain your purchasing power, you need to earn a return of at least 7.4% per year, a tricky feat to achieve if you are trying to accomplish this in traditional savings accounts.
As you can see in the above graphic, if you want a flexible savings product at a bank, you are trading off higher interest rates on your savings (interest rates that don’t beat inflation). Most consumers overlook flexibility and the potential need for their savings to be ‘liquid’ — this refers to the ability of your investment to be easily accessed and quickly converted to cash — in the pursuit of higher interest rates.
But why not have both? High interest rates and flexibility
That way, the savings product benefits you by beating inflation and is liquid and accessible to you in the case of an emergency.It is also essential to consider the minimum investment amount before investing in a savings product. Banks tend to promote high yields but with high minimum investments, making it challenging to obtain or invest in.
What makes our USD Savings Vault different?
Unlike traditional savings accounts, the Revix USD Savings Vault allows you to earn double the rate of many South African banks with greater flexibility and lower minimum deposits. The minimum deposit amount is $100 (approximately R1 676 at the time of writing) worth of USD Coin, a 1:1 dollar-backed stablecoin.
The Revix USD Savings Vault makes it possible to effectively convert your savings into US Dollars while earning a 9.25% return.
By investing in the Revix USD Saving Vault, you avoid holding South African Rands — a currency that has dramatically depreciated against the US Dollar over time (the one-year Rand depreciation rate against the US dollar is 14.68% at the time of writing).
Therefore, taking into account Rand depreciation, the return on your USD Saving Vault translates to a 23.93% return on your South African Rands. Compare this to the best rate offered by Bank 5 (4.75%), and you can quickly realise the power the Revix Saving Vault could have on your savings.
Adding to that, Revix is currently running a promotion where customers can buy USD Coin without having to pay transaction fees up to the 15th of September 2022. That’s right, Fee-free USD Coin on Revix!
How do I create a USD Savings Vault account?
As soon as you sign up for a Revix account, your savings vault was automatically created.
Then, all you need to do to start earning 9.25% on our USD Savings Vault and take advantage of our current ‘Zero Buy-In fees on USD Coin’ is the following:
- Make a deposit
- Purchase USD Coin
- Select “Savings”
- Click the “Lock and earn” button.
From the very next day, you’ll start earning by the minute. Unlike your bank, you don’t have to wait until the end of the month to see your earnings increase.
Everyday people deserve to become their own wealth managers, which means that at the very least, they should be able to grow their wealth without losing value — and the USD Savings Vault was designed for just that.
Find more information on our USD Savings Vault here.
