So as you know, Take Charge of Your Money is all about sorting out your finances and taking charge of what you have! Let’s look at how you can invest with only R100 per month. Of course, if you have more available then you can still read this to see what investment options are available. I just want to show you that it is possible to invest with small amounts that you have. Don’t be discouraged!
Before we start though, have a look at whether it’s better to save money or pay off debt. The bottom line is that if you have any debt with a high interest rate (over 15%) then you’ll almost certainly want to pay that off first. It’s pointless investing money at a lower rate than what you’re paying for your debt!
Minimum investment amounts
When looking at investing you’ll generally need to interact with an investment company such as Old Mutual, Allan Gray, EasyEquities, 10x Investments, Prudential, etc. (there are many companies for a legit investment in South Africa!). Each company will have its own requirements as to minimum monthly investment amounts and most of the “big ones” require at least a R300 per month debit order. Some in fact even require a minimum of R500 per month.
That’s great for their business but what about the investor who only has R100 per month and wants to invest it wisely?
So where to invest in South Africa? All banks offer a sort of fixed deposit account which is a good start, and call accounts also offer a fair interest rate too. Many banks also offer other investment products such as a share trading facility, at a cost of course! In this post we’ll look at alternative options to banks. Maybe I have a general distrust for banks, but that’s not the point. I’m interested to see where else you could invest your R100 per month, or even buy shares for R100.
Also remember that just because you have a small monthly investment, you are certainly not limited to short term investments in South Africa. It really depends on your intention for your investment. If you are saving for something and need the cash in a year or two, that would be considered short-term and low risk. If you’re investing for the future, then there are many options available.
Beware of scamsters
Note: when dealing with any financial institution make sure that it’s a registered Financial Services Provider and has a valid FSP number. Don’t be conned by your ‘Uncles friend who has a friend’ kind of thing. Stick to legit investment companies and trust me, if it looks too good to be true then it is.
Here are some of the best ways to invest money in South Africa, for those who are starting their investment journey.
Where can I invest with only R100 per month
I’ve done quite a bit of searching and to be honest I haven’t found many options for someone who simply wants to invest R100 a month into a product not offered by a bank. There’s nothing wrong with banks, I just thought I’d see what other options are available, like how to buy shares for R100 only.
This is by no means an exhaustive list and I will edit is as I find out more info or learn about new products. I am also not advertising these companies, I’m simply conveying info that I have found on the various websites.
If you have more info for me to add please let me know via the comments or email. Note that this is in relation to South African investment options only and are absolutely legit investments.
Investments in South Africa for beginners.
Listen to this podcast episode on Ess’s investment journey. How she started, where she learnt about investing, and how you can start investing with just a small amount, whatever you have.
Legit investment platforms in South Africa
If you’re wanting to know how to start investing in shares South Africa, EasyEquities is probably one of the simplest and cheapest investment platforms in South Africa. There is no Easy Equities minimum deposit so you can literally deposit any amount into your Easy Equities account and then invest it in shares or ETFs. You could for example transfer R20 a month to your Easy Equities account if you wanted to, or a far larger amount. It’s a really cool platform used by many “big time” investors as well as the newbies. They also offer US dollar based investments as well as TFSA’s (tax free savings accounts).
So if you want to start trading with R100 or buy shares for R100, Easy Equities is a good option.
I have an Easy Equities account and love it! Easy, cheap, transparent and gives you the power to choose. Read about my first investment with Easy Equities.
Liberty Stash is a mobile app which will help you save money and invest it in a Tax Free Savings Account. You can choose to either invest part of your TFSA in an Top40 index fund or in a cash account. Have a look at what ETFs are to get an understanding of an index tracking fund. Note though that this counts towards your overall Tax Free Savings Account limit.
It seems like a fun app as you can round up all your card purchases and invest the spare change. Invest based on the weather (invest on sunny days) or invest based on your physical exercise. Complete the 10c challenge with automated transfers. They’ve made investing pretty fun.
So you can buy shares for R100, but you can even invest as little as 10c. You’re in control.
TymeBank is a bank so technically speaking I shouldn’t add it to the list. However, it’s very different to a standard bank as we know it. TymeBank is an online-only bank only with no physical branches. They don’t charge bank fees and can offer you a simple banking solution.
I have never used them but they offer decent interest rates via the GoalSave account; a notice-period account whereby you receive a higher interest rate the longer you leave your money in the account. Up to 8% which is pretty decent! Check out the TymeBank goal save interest rate here.
You can use the TymeBank USSD code *120*543# or *130*543# to check your balance.
Bank Zero is a brand new bank in South Africa and operates online and via a smart app. I have not them this yet, but they are absolutely legit and offer great services at no cost. You can also find the Bank Zero interest rates here. Let me know of your BankZero experiences so that I can update this page.
Okay so this is not your traditional investment and certainly not something that I recommend to put all your money into. But, having said that, investing in crypto is definitely worth investigating and I personally aim to have 1% – 2% of my overall investment portfolio in cryptocurrency. It is a little more risky, but it’s not a bad idea to have some risk as part of a well diversified investment portfolio.
You can buy Bitcoin with only a R100 – or even less really! You top up your wallet as and when you have money and invest in cryptos at any time.
Use your Home Loan
Ok so this is also a bank and technically speaking shouldn’t be on my list. However, if you have a home loan you can save money in there and earn a good interest rate. If your home loan interest rate is say prime + 1, you can earn interest on your savings at that rate. You don’t earn the interest in the account in a standard way, but rather your overall loan is reduced by the interest you save. Sounds confusing maybe but have a look at how to use your home loan as a savings account.
OUTVest is part of the OUTSurance family and offer a few index tracking funds where you can invest a minimum of R100. They also offer a cool feature called Crowdvest which is a way of allowing your friends and family to contribute directly to your investment. You could use this as a wedding or birthday gift idea or even create an education fund for your child which people can contribute to.
I don’t have any OUTVest investments and haven’t looked carefully at fees or costs involved. Please share your feedback if you have invested with them.
The Franc App is an investment app offered by the Franc Group in South Africa. They only cater for investments in the Satrix Top40 and the Allan Gray Money Market Fund. You can invest with R100, or any amount that you have. They charge an overall % annual fee.
Top up your company retirement fund
If you’re a member of a company Provident or Retirement Fund, you will most probably be able to contribute an additional amount. You could ask your HR person to add R100 to your monthly contribution.
Where can I invest R100?
It’s amazing how few options I have found (besides banks) where you can invest R100 per month. Most fund managers are only interested in investors who have at least R300 per month to invest, and some even require more.
Don’t let this make you feel despondent though. You really can take charge of your money and invest whatever money you have available! So if you have more, investing it would be a great way of how to use R1500 wisely.
EasyEquities seems like the obvious choice though as they give you absolute freedom to invest as much or little as you can, as well as choose exactly what to invest in. You can invest any time of the month, trade, view your account balance, etc. All online and all in a simple to use system. You can literally just buy shares for R100.
If you know of any other legit investment companies where you can invest R100 or buy shares for R100 only, let me know and I can keep this list up-to-date.
As a bonus suggestion – why not try the 52 Week Savings Challenge?
Not sure what it is? That’s okay – you can read all the details about the 52 Week Savings Challenge here.
I’m happy to hear your thoughts on any other investment options you know of that caters for R100 per month.
And have you by any chance been wondering where to find the best savings account in South Africa? Read my post on that – it’s geared towards students but check t out.