What’s your financial advisor going to say when you ask:
“Now that interest rates are scraping the floor, should I still leave my cash in a money market fund?”
South Africa’s interest rates have hit an all-time low. It’s great for borrowers. It’s terrible for savers.
For years, you could park your spare cash in a money market fund, fixed deposit, or savings account and earn a decent enough return — without sleepless nights. But not anymore. Real returns are now flat, or even negative, once inflation takes its bite.
So what happens next?
That’s the uncomfortable question. Because once you move beyond cash, the risk profile changes. And while your financial advisor might offer a few textbook alternatives, there’s no longer a “safe and easy” place to earn meaningful returns.
You might start hearing talk about things like bonds, dividend-paying shares, income-focused funds, and tax-efficient accounts.
This simply serves to flag the shift. If you’re holding excess cash, it’s time to ask sharper questions — and press your advisor for specifics, not generalities. Even the most conservative advisors now acknowledge: sticking with cash is a risk in itself.
Just be aware: some questions may make your advisor uncomfortable.
Disclaimer: This is not financial advice. It’s a prompt for further thought. Please consult a licensed financial advisor before making any investment decisions.
