I would rather stick my R in stx40 than a Money markey. Bank rates are traditionally below REAL inflation rates. With all the money printing around the world at the moment bank accounts would be the last place I put my cash. My 2c - P
Assume you put your cash in the bank and get 12% interest for a year, and you pay 40% marginal tax. Taxman will take 4.8% and inflation will take say 11%. You are left with a -3.8% real return. Yes, that is a minus. PS The first R19000 for under 65 year olds and R27500 for over 65 year olds is tax free in the 2008/9 tax year.