Finbond Mutual Bank, known as South Africa’s newest bank, pays 10% on bank deposits, according to Julius Cobbett of MoneyWeb.
That’s how it’s attracted attract R85 million in bank deposits since it opened its doors four months ago.
But is the return attractive enough to compensate for the risks?
Here’s why Finbond could be a great investment right now
Well, Finbond’s parent company, Finbond Group, was the top performer in Moneyweb’s stock pick competition last year.
And some of the biggest gains last year included forgotten stocks like Finbond (which bottomed at 9c and then surged through 40c), adds the Financial Mail.
All of Finbond’s savings products currently require a minimum deposit of R100,000. But there are plans to cater to smaller bank depositors, according to Finbond CEO, Willie van Aardt.
If Finbond’s success hasn’t convinced you, here are two more reasons to invest in the emerging market banking sector and bank deposits.
Looking beyond our borders, Tanzania’s bank deposit interest rates are now on the rise, according to AllAfrica.com.
These bank depositors are sure to see more returns from the money banked in financial institutions, thanks to competition that has lifted up interest rates.
That’s why the emerging market banking sector is a great investment right now and a massive profit opportunity, believes Gavin Fourie, editor of Unconventional Millionaire.
After all, banking sectors in emerging markets with the largest amount of unbanked people now have the greatest profit potential.
These unbanked masses have no choice but to start using banks as more companies insist on paying salaries directly into a banking account. With internet banking, this is also the easiest way to manage your finances without having to go into your bank and waste time standing in a queue.