March 2017

Welcome to COVER & ABOVE  “FOR YOU TO KNOW” Page: The Learning and Knowledge 4U2K in, Investment Planning, Financial Services & Wealth Management.

hosted by Irshad JACKARIA  [BCom (Hons), Dip INV, MSc, MCIPS, CFA]

01st MAR 2017: 4U2K – SAVINGS RATE !

Do you know how the savings rate is calculated?

In Mauritius, the savings rate (SR) offered by commercial banks represents a reference for the risk-free rate and can be used to judge the attractiveness of an investment, like a fixed deposit, a term deposit, a bond, an endowment and even shares in mutual funds and on the stock exchange. It is linked to the repo rate and shares a direct relationship. When repo rate increases, it become more attractive for banks to deposit their excess, should they be offered, at the Bank of Mauritius. Hence, they will receive more on their deposit. This will result in an increase in the Savings Rate that they offer to their customers, and anyone depositing on a savings account will be receiving more in terms of interest. However, banks are free to set their SR, as per the strategic focus, notwithstanding changes in the repo rate. In theory, the SR is defined as the rate At times, during promotional campaigns, banks and credit institutions offer rates above the SR, in a way to entice the customers. For your information, savings rate in French is “Taux d’Epargne – TE”. And, Repo Rate in French is “Taux Directeur”, and as we say, at Cover & Above, it gives direction to the SR.


Your Financial Advisor & Wealth Planner

Irshad is the owner director of Cover and Above, launched in July 2016 and of Knowledge of the ART Corporate Training Academy created in July 2003. He was voted the ‘most successful young entrepreneur of the year in Mauritius’ in the Shell Livewire for 2005. At Knowledge of the ART, he develops, launches and lectures courses in the areas of Banking, Financial Services, Investment, Private Banking, Wealth Management and Insurance. At Cover and Above, he provides financial advices and wealth planning services.

These highly practical courses have seen, over the years, participants from HSC holders with no prior experience to banking and finance personnel like tellers, service representatives, officers, supervisors and managers, as well as graduates and charter holders in banking, finance and accounting.

And, in 2016, Irshad earned the Chartered Financial Analyst ® (CFA®) credential and became a member of CFA Institute, Charlottesville, USA, as well as a member of the CFA Society Mauritius.

The CFA credential is the badge of distinction in the investment management profession. It represents a deep knowledge of investments, a commitment to ethics, and a passion for always putting investors first.

The CFA Institute is a highly respected global community of investment management professional excellence and integrity. The achievement of the charter demonstrates diligence and tenacity, and CFA charterholders are recognised for this unwavering integrity, and by earning the CFA charter, one makes a serious commitment to uphold the highest standards of professional education and conduct.