Find SAs best fixed deposit rates 🚀. FedGroup's misleading 11.3% 'Effective' Rate 😡😡😡 FedGroup has got some of the best rates in the country. The benefits of a fixed-term savings plan. Single deposit option. Invest for 6 – 60 months, with a minimum balance of R10 000. You choose how long you want to invest (from 6 – 60 months) You deposit a single amount (maximum R20 million) to invest over the term you choose; Earn from 6 – 9.00% (nominal interest rate). Capitec Savings Account Flexible Savings Features: You can earn from 4.5% interest per year on daily balances. You can choose your deposit amount and the frequency of your deposits. You can choose a name for your plan. You have access your plan any time through Remote Banking or our ATMs. There are no monthly admin fees or minimum balance. Capitec Bank 1 Year Fixed Term Deposit: 7.92%: FNB 1 Month Fixed Deposit: 5.95%: Nedbank 1 Year Fixed Deposit: 7.44%: Investec 1 Month Fixed Deposit: 6.65%: Ask a. Any person that has a fixed income and has some spare money at the end of the month can invest in the JSE. Technically, there is no minimum amount of money that you can invest on the JSE. However, you will have to pay service fees for your investment.
In South Africa, where household savings remain a national priority, there is a dire need to instil a savings culture. While there are various savings vehicles you could investigate, opening a savings account is undoubtedly one of the simplest.
But which savings account offers you the best deal? And should you opt for an open or fixed savings option?
Tip: To save more consider opening a tax-free savings account, here is all you need to know.
Justmoney compared the basic current savings account offerings from the big five banks, i.e. Absa, First National Bank (FNB), Standard bank, Capitec, and Nedbank.
Here is a breakdown:
Open savings accounts
Account name | Minimum deposit | Interest rate | |
Absa | TruSave | R50 | 3.70% |
FNB | Savings account | R100 | 5.25% - 6.30% |
Capitec | Global One | R25 | 5.1 % - 9.25 % |
Standard | Pure Save | R50 | 2.85% |
Nedbank | Savings deposit | R50 | 0.76% - 2.05% |
Based on the comparison table above, the Capitec Global One account boasts with the best interest earning potential as the highest in their interest rate range is capped at 9.25%. his stands head and shoulders above the rest in the market as FNB’s range cap follows at 6.30% and Absa at 3.70%. Nedbank came in at the other end of the stick as its interest rates proved lowest at 0.76%.
In addition to Capitec offering the best interest rates, it also has the lowest minimum deposit fee at R25. This again is a stand-out as Standard Bank, Nedbank, and Absa came in with double the fee at R50. FNB on the other hand ranks the most expensive of the lot at a R100 minimum deposit.
From the above we can conclude that Capitec Global One account is the cheapest account with the best interest offering.
Fixed savings accounts
Account name | Minimum deposit | Interest rate | Fixed period | |
Absa | Fixed deposit | R1000 | 3.25% - 9 % | 8 days – 6 months |
FNB | Fixed deposit | R10 000 | 8.70% | 1 – 60 months |
Capitec | Fixed deposit | R10 000 | 9.25% | 6 – 60 months |
Standard | Fixed deposit | R1000 | 9% | 1 – 18 months |
Nedbank | Fixed deposit | R1000 | 5.5% - 8.16% | 1 month – 18 months |
Based on the fixed account comparison, Capitec once again offers the best interest-earning potential at 9.25%. This is closely followed by the upper end of the interest ranges of Absa at 9%, Nedbank at 8.16%, and FNB at 8.70%. What’s important to note is that the interest depends on the period you are fixing your money for. Certain accounts such as the Standard Bank fixed deposit account offer between 1 – 18 months whereas others such as Absa and Capitec offer fixed options for up to 60 months.
The minimum deposit amounts range from the cheaper minimum deposit amounts of R1000 at Absa, Standard Bank, and Nedbank. Whereas Capitec and FNB offer fixed deposit accounts at a minimum deposit of R10,000.
What’s key to note is that the Capitec Global One account does have the added benefit of a fixed savings pocket, which does not require a minimum deposit of R10 000, but instead allows you to tailor the amount to your need.
Based on the above, Capitec offers the best interest rates at 9.25% but requires one of the highest minimum deposits. Absa, Standard Bank, and Nedbank in turn offer the lowest minimum deposits, but also have the lowest interest-earning potential.
When considering the minimum deposit fees across the open and fixed savings account options we can conclude that fixed-term savings accounts offer the better interest rates. This, besides Capitec which offers the same interest rate of 9.25% with each account option.
The perks of a good savings account
“It is easier to withdraw money from savings accounts than from stock, bonds, and certificates of deposits, which results in penalties,” says Cowyk Fox, managing executive of Everyday Banking, RBB SA, Absa Group.
Savings accounts will usually accrue interest over time. This means your money has more earning potential than if you would have kept it in a safe at home.
Himal Parbhoo, CEO of FNB Retail Cash Investments offers the following tips:
- A savings account helps when the unexpected strikes. In case of an emergency, the rule of thumb is to have at least 3 months’ worth of salary saved in a separate savings account, in case of unexpected expenses.
- Savings accounts also help you save towards specific goals like holidays, car or home deposits, weddings, big birthdays or anniversaries.
- Fixed-term savings are great for keeping savings safe and growing – it can also supplement income as the interest can be paid out monthly.
What do you need to open a savings account?
If you don’t already have a savings account and are looking to open one, here are few general requirements:
- Applicants must be 18 years of age and be earning
- Applicants must be able to produce a South African identification document (ID) or their passport, as well as a copy of their proof of address.
- You must also be able to produce the minimum opening deposit. This may vary from bank to bank and further between accounts.
It is always advisable to do your research before opening any account at any financial institution in deciding which is the best option for you and your pocket.
Invest your money with a bank that urges you to bank better and live better. You are in good hands with a Capitec Fixed-Term Saving Account.You can invest up to R20 million with a Fixed-Term Savings Account.
Investments are quite very important – for as long as we are alive, we are going to need money – it is such a peace of mind knowing that you have money saved, even when problems knocks at your door you know, that financially you’ll be covered if money is needed.
Don’t hesitate when it comes to saving and investing your money. You can choose to invest with Capitec with the fixed term account from 6 to 60 months.
iRead: Capitec Tax-Free Investment Account
You will only have to make a single deposit and the minimum deposit that you can make is R10 000. You can earn up to 8.65% nominal interest.
You can choose to reinvest your interest or have it deposited into your savings account; you get fixed rates throughout the term. Your money will be available for use in maturity date and there are no monthly fees.
Here’s a table of Capitec Interest Rates
| Term (Months) | R10 000 – R24 999 | R25 000 – R99 999 | R100 000+ | |||
| Nominal | Effective | Nominal | Effective | Nominal | Effective | |
| 6 | 6.90% | 7.12% | 7.00% | 7.23% | 7.25% | 7.50% |
| 7 – 9 | 7.05% | 7.28% | 7.20% | 7.44% | 7.30% | 7.55% |
| 10 – 12 | 7.25% | 7.50% | 7.80% | 8.08% | 7.85% | 8.14% |
| 13 – 18 | 7.30% | 7.55% | 7.90% | 8.19% | 7.95% | 8.25% |
| 19 – 24 | 7.40% | 7.66% | 7.95% | 8.25% | 8.05% | 8.35% |
| 25 – 36 | 7.65% | 7.92% | 8.00% | 8.30% | 8.10% | 8.41% |
| 37 – 48 | 7.80% | 8.08% | 8.10% | 8.41% | 8.15% | 8.46% |
| 49 – 60 | 8.00% | 8.30% | 8.55% | 8.89% | 8.65% | 9.00% |
Capitec Fixed Deposit Rates 2020
For more information, visit www.capitecbank.co.za