Asba, second largest bank in South Africa by assets, has launched a high interest savings account.

The easy access savings account, Absa Depositor Plus, is aims to reward South Africans for saving.

Offering an interest of 5% the account for all income brackets has a low entry criteria of R15,000 ($1,500) and will offer instant access to funds should they be required at short notice.

Arrie Rautenbach, Absa head of retail banking said the 5% interest rate is one of the highest offered in the market and "likely to hold wide appeal in a market where few accounts with this much flexibility provide this level of return.

"Absa’s Depositor Plus uses a tiered interest rate model that rewards customers who save more by offering higher interest rates for higher balances. Absa also has the ability to load a stop order into Depositor Plus to ensure that clients are able to save more regularly, achieve the higher rates offered as well as their savings goals."

Absa states that additional products will be launched as well as the Depositor Plus as they aim to establish a position as a savings bank.

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