SBG Securities Proprietary Limited (SBG Sec) is pleased to offer you an alternative to holding cash in your trading account (held with the JSE Trustees Proprietary Limited otherwise known as JSET).
You can open a Money Market Account through SBG Sec, subject to the Minimum Net Balance being maintained and as further detailed in clause 8 of the Standard Online Share Trading Mandate.
The Minimum Net Balance is currently R50 000.00 (fifty thousand rand).
Interest earned on cash held in your trading account is calculated on the average daily call rate obtained by the JSET. The net rate earned for September 2018 is 5.44% after deducting SBG Sec fees of 1.00% plus VAT.
However, for a Money Market Account, SBG Sec has a call account with The Standard Bank of South Africa Limited (Standard Bank) into which it places your funds, at generally better net rates. The table below illustrates the comparative returns on offer:
Note that the rate obtained on a Money Market Account is a daily call rate provided by Standard Bank which may change without any notification.)
Money Market Account holders will receive comprehensive details of all movements of funds, interest earned, rates obtained and fees deducted on their monthly SBG Sec statement.
The JSE requires all clients to maintain an account with JSET to ensure settlement of trades within specified times. SBG Sec will automatically transfer funds from your Money Market Account into your JSET account to meet settlement obligations i.e. you will notice no difference to your trading account other than the fact that you may earn higher interest from Standard Bank on your cash balance.
There is a R4.56 payment fee (including VAT) for withdrawals made from either a Money Market Account or a JSET account to your bank account.
There are no extra fees or charges above the standard fee for a trading account (other than those noted in the table above) for a Money Market Account.
To open a Money Market Account please ensure that you select
Money Account when registering for Standard Online Share Trading, or alternately review your account preferences if you have already opened an account. However, it will always be subject to the Minimum Net Balance being maintained and subject to the conditions contained in clause 8 of the Standard Online Share Trading Mandate.
Gross interest earned on the account will be reflected in IT12 returns, however the fees paid may or may not be deductible for tax purposes depending on individual circumstances. Investors are encouraged to seek their own independent tax advice in this regard.
For more information on a Money Market Account, please contact SBG Sec on 0860 121 161 or email us at [email protected]