How Much Money do you Need to Open a Savings Account?
When you first start to earn a decent bit of money, it can be tempting to take the path of least resistance and simply store it in the first bank account you open. A lot of people around the world do this sort of thing, but savvy investors will be quick to point out a major flaw with this kind of thinking – it doesn’t grow your money. If you want to make the most out of what you’ve got, you should always be looking for ways to increase your funds, even if that just means moving your money around. This is where savings accounts come in. They offer a fairly safe and reliable means to earn interest over time, at very little cost to the individual. But can anybody just open one of these accounts? How much money do you need to do it? And is it really worth it anyways? How Much Money do you Need to Open a Savings Account?
The minimum opening deposit is the required capital you will need to present before you’re able to open a savings or investment account. Usually, this figure sits somewhere between R500 – R1000.
But here’s the thing, different banks offer different savings account opportunities. So while some banks out there will allow you to open one without an opening deposit, others will demand a small amount to get started. Usually, this figure sits somewhere between R500 – R1000.

That said, there are also various kinds of savings accounts on offer, and the opening deposit amount may also change with the type of account you choose to open.
Should I Have a Savings Account?
As with any financial choice, savings accounts come with distinct pros and cons that need to be considered before you make your decision. Some of the most important ones include –
Savings Accounts
Advantages They provide interest. They’re low-risk. They have relatively low opening thresholds. Money is easy to access. |
Disadvantages The interest rates aren’t particularly high. Certain fees and caveats may apply. They may include minimum balance requirements. Interest rates may not always keep up with inflation. |
Due to their stability and accessibility, savings accounts are normally used by people who want to safely grow their money while also keeping it readily available in case of an emergency. Many individuals also like to keep a set amount of cash in their savings account in preparation for things like holidays or large purchases.
However, due to the low-interest rates usually associated with savings accounts, they aren’t exactly known for their ability to rapidly increase your wealth. Thus, you may find that there are many other, far more lucrative, investment opportunities available to you – so long as you’re willing to accept the added risk.
Additionally, banks may include certain maintenance charges that could slow the overall growth of your cash.
Is There a Minimum Balance I Need to Keep in my Savings Account?
Much like with the opening deposit, your minimum balance will depend on the bank in question as well as the type of savings account you open.
For most banks and accounts, this amount could be as low as R50. However, certain market trader accounts may demand that as much as R10 000 be maintained every month at a minimum.

How Much Should the Average Person have in their Savings Account?
Financially responsible individuals will normally want to keep enough cash in their savings account to cover 3-6 months of living expenses. That way, if disaster strikes, you won’t be scrambling to find money just to put food on the table or to keep the lights on.
Where Should I be Financially at 25?
The financial situation of young adults has changed dramatically over the past few decades. Just a few generations ago, the average 25-year-old might have already been married with a kid on the way. By contrast, today’s 25-year-olds are far more likely to live at home and receive financial assistance from their parents.
Couple this with the country’s high unemployment rate, and it’s easy to see why so many young adults are pessimistic about the future.
With all this in mind, it’s hard to give people a specific number with regard to how much money they should be earning, or what their living conditions should look like. Ideally, you should be financially independent with at least a little bit of cash in the bank, but this isn’t always possible.
Perhaps then, the best advice you could receive would be to practice a financially-intelligent lifestyle and thus put yourself in the best possible position, regardless of what kind of money you’re earning.
How do I Make Money at 25?
It goes without saying that every 25-year-old is different, and will probably have very different options available to them when entering into the workplace.
That said, there are some consistencies to be found within every young adult, which can help us to form a kind of roadmap to success. For instance –
- Don’t expect too much – Nobody starts off with experience. And we all have to go through that period in life where we’re still learning the ropes while still wanting to get paid for our work.
This is a perfectly reasonable position to take, but don’t start turning your nose up at jobs that seem to be beneath you. Even if an opportunity pays less than you might expect, it can still provide you with the experience and skills you need to get something better in the future.
- It’s never too early to start saving – Saving a portion of your paycheck each month can be difficult (especially when you’re not earning that much to begin with), but experts agree that a little bit of saving now can really help you to avoid disaster later on when you run into trouble or need to make a large purchase.
- Make smart investments – Investing isn’t something that’s only reserved for the people at the top of the economic ladder. Everybody can try it, and most people do without even realising it.
Whenever you spend money on your own education or put money into a startup business, you’re investing in your future. Do some research and ensure that these investments are worthwhile, and you should find yourself well-placed as time goes on.
- Try something on the side – Jobs don’t have to be full-time things that you stake your entire future on. You can also try smaller ventures in order to make a little bit of extra cash in your free time.
Blogging, ridesharing, and freelancing are just some of the options available to people who want to use their downtime effectively.

In Conclusion – How Much Money Do You Need to Open a Savings Account and Is it Worth it?
The specific requirements and details of a savings account will differ depending on the type of savings account in question as well as on the bank that offers it.
Most banks will require a small deposit to be made to open a standard savings account, as well as a minimum balance to be maintained from month to month. This amount will normally be somewhere between R500 – R1000, but there are many other banks which may allow you to open such an account with zero funds whatsoever.
Additionally, these amounts can grow substantially when dealing with more specialised accounts. For example, a market trader account may require a minimum opening deposit of at least R10 000 just to get started.
Savings accounts can be a useful tool for individuals who want a source of low-risk, stable growth for their money, while still keeping it highly accessible.
However, this stability usually comes with a much lower interest rate than you might find in other investments. As such, standard savings accounts may not bring in the kind of returns some investors are looking for, and might even struggle to keep up with the rate of inflation.
Most people use savings accounts to keep a bit of extra money in reserve in case of emergencies, or in anticipation of large once-off payments such as holidays or vehicles.
Many people try to keep enough money in their savings accounts to cover somewhere between 3-6 months of their living expenses at all times. They do this so that they can handle any unforeseen incidents that may occur in the future.
Given the instability of the economy at the moment, coupled with the high rate of youth unemployment across the country, many South Africans are concerned that they may not be as financially independent as they should be. Regardless of the specifics of their situation, such individuals may find it helpful to practice a financially-sustainable lifestyle while simultaneously ensuring that they make as many smart investments as possible.
This may also include working during their free time and making a bit of extra money to give them that added fiscal boost.
Disclaimer Finance101: All of our posts are for research purposes only. Finance 101 aims to assist its readers with useful information on the laws of our country that can guide you to make financial decisions that will enable you to become more financially independent in the future. Although our posts cite the constitution in many instances, they are intended to assist readers who are looking to expand their knowledge of the law & finance-related queries. Should you require specific legal/financial advice we advise you to get in touch with a qualified financial expert.
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