South African Notice accounts offer some of the best interest rates for short, medium, and long term investments. A notice account can earn up to 7.30% per year in interest. Deposit accounts are among the most appealing investments due to the interest that can be earned.
To activate a notice account, a minimum opening deposit into the account is required. The minimum opening deposit varies by a bank but can range between R500.00 and millions of rands. To earn the applicable interest, the minimum opening deposit must be kept in the notice account at all times.
A notice account’s interest rate can be tier-based, which means that a deposit of a certain amount can earn a certain interest rate. The more money invested above the minimum opening deposit, the higher the interest rate that can be earned.
The number of deposits that can be made with a notice deposit is also flexible. Deposits into a notice account can be made at various intervals, which can increase the amount of interest earned on the account.
When investing in a notice deposit account, notice days are also important. In South Africa, the following types of notice deposit accounts are available:
- 7 Day Notice Account;
- 15 Day Notice Account;
- 32 Day Notice Account;
- 45 Day Notice Account;
- 60 Day Notice Account;
- 90 Day Notice Account; and
- 120 Day Notice Account.
A bank may provide one or more of the notice accounts listed above.
Smaller South African banks typically offer higher interest rates on notice accounts and require a lower minimum deposit to activate. Banks such as Bidvest and Sasfin dominate the South African notice deposit account market.
The following is a list of the top ten notice deposit accounts in South Africa.
10 highest notice account interest rates in South Africa
| Number | Bank name | Highest interest rate |
| 1 | Sasfin Bank | 7.30% |
| 2 | Absa Bank | 7.15% |
| 3 | Investec Bank | 6.95% |
| 4 | Bidvest Bank | 6.94% |
| 5 | FNB | 6.50% |
| 6 | Standard Bank | 6.40% |
| 7 | Nedbank | 6.30% |
| 8 | Discovery Bank | 6.10% |
| 9 | African Bank | 5.85% |
| 10 | TymeBank | 4 – 6% |
The best interest rates offered in South Africa for notice deposit accounts are discussed further below.
1. Sasfin Notice Deposits
Sasfin offers Notice deposit accounts with nominal interest rates ranging from 6.75% to 7.30%. To activate the account, a minimum investment of R20,000.00 is required.
Sasfin provides five notice accounts, ranging from a 32-day notice account to a 120-day notice account. The lowest interest rate on Sasfin Notice accounts is 6.75%, which equates to a 6.96% effective interest rate for the 32-day notice account.
The Sasfin Notice Account offers the highest interest rate of 7.3%, with an effective interest rate of 7.55%.
The Sasfin 120-day Notice Account has the highest interest rate of any notice account offered by Sasfin Bank.
Requirements of the Sasfin Notice Accounts
- Must have a valid South African ID book or Smart card,
- Have a proof of residence that is not older than 3 months at the time of application.
- Have R20,000.00 or more to deposit into a notice account.
2. Absa: Notice Select Deposit Account
The Absa Notice Select Deposit Account has an annual interest rate that ranges from 4.85% to 7.15%. To activate the account, a minimum deposit of R1,000.00 is required. The Notice Select Deposit Account allows for deposits of up to R9,999,999,999.00.
The Absa Notice Select Deposit Account offers tiered rates that are determined by the amount of money saved in the account. Those who save between R1,000.00 and R24,999.00 earn the lowest interest rate on this account.
The lowest interest rate for a 7-day notice account is 4.85% with an investment of R1,000.00 to R24,999.00. An investor can earn up to 6.6% interest rate on the same investment range but with a notice period of 45 days.
Investors who invest between R10 million and R9,999,999,999.00 earn the highest interest rate on the Absa Notice Select Account. The highest rate is 7.15%, and it is reserved for those who accept a 45-day account notice period.
Absa Notice Select Deposit Account comes with the following features:
- Deposits can be made at any time into the account;
- Interest is calculated daily;
- The account can be used as a security to acquire loans;
- Account Holders have to choose to access what percentage of the savings. Choices range between 0%, 10% and 50%;
- Interest can be paid on the day that an investor chooses, and
- Balances below R1,000.00 do not earn interest.
Requirements of the Absa Notice Select Deposit Account
- Must have a valid South African ID book or Smart card, and
- Have proof of residence that is not older than 3 months at the time of application.
- Must have at least R1,000.00 to deposit into the account.
3. Investec Notice Account
Investec offers notice accounts with annual interest rates ranging from 6.21% to 6.95%. Investec notice deposit accounts require a minimum opening deposit of R100,000. The notice deposit accounts available include 15, 32, 45, 60, 90, and 120 days.
The accounts charge interest based on how much percent of the saved amount can be made available on demand. The interest rates applicable to each notice account are shown in the table below:
| Notice Days | ||||||
| % Available on demand | 15 | 32 | 45 | 60 | 90 | 120 |
| 0 | 6.34% | 6.75% | 6.78% | 6.80% | 6.90% | 6.95% |
| 10 | 6.32% | 6.70% | 6.73% | 6.75% | 6.84% | 6.88% |
| 20 | 6.29% | 6.65% | 6.67% | 6.69% | 6.77% | 6.82% |
| 30 | 6.26% | 6.60% | 6.62% | 6.64% | 6.71% | 6.74% |
| 40 | 6.24% | 6.55% | 6.57% | 6.58% | 6.65% | 6.67% |
| 50 | 6.21% | 6.50% | 6.52% | 6.53% | 6.58% | 6.60% |
The Top5 Optimiser and the Private Select Fund are two more flexible notice deposit accounts offered by Investec. The account offers a variable rate linked to the average of the top five qualifying money market funds via the Top5 Optimiser.
Private Banking Account holders can open an Investec Top5 Optimiser with a minimum investment of R100,000.00. Non-private banking account holders can open the Investec Top5 Optimiser, which requires an R250,000.00 minimum opening deposit.
The Invertec Top5 Optimiser is available with 90-day and 45-day notice account options, with interest rates of 6.49% and 6.34%, respectively.
The Investec Private Select Fund offers a 40-day notice account and requires a minimum deposit of R1,000,000.00. The account offers an interest rate of 6.38%; however, deposits of less than R1 million earn 5.13%.
4. Bidvest Bank Notice Account
Bidvest Bank Notice Account offers annual interest rates ranging from 6.45% to 6.94%. A minimum deposit of R5,000 is required to open the account. The notice period for the Bidvest Bank Notice Account ranges from 32 to 121 notice days.
Bidvest Bank’s 32-day Notice Account comes with two savings options. The first option is for monthly investments ranging from R5,000.00 to R999,999.00. The interest rate offered on this account is 6.75%, and interest is paid monthly.
The second option for the Bidvest Bank Notice Account is for those who deposit R1 million or more. For those who invest R1 million or more, Bidvest Bank offers 6.85% on their notice account.
Other available options include the 41, 61, 91, and 121 days Notice Accounts. The Bidvest Notice Accounts of 41, 61, 91, and 121 days earn investors interest of 6.45%, 6.48%, 6.74%, and 6.94%, respectively.
Requirements of the Bidvest Bank Notice Account
- Must have a valid South African ID book or Smart card, and
- Have a proof of residence that is not older than 3 months at the time of application.
- Must have at least R5,000.00 to deposit.
5. FNB 32-Day Flexi Notice
The FNB 32-day Flexi Notice has an interest rate of up to 6.45% and requires an R5,000.00 deposit to activate. This account’s funds are accessible after 32 days’ notice.
Those who invest R5 million or more earn the highest interest rate of 6.45%. The account earns daily interest and, if capitalised, has an effective interest rate of 6.64%.
Money can be deposited into the FNB 32-Day Flexi Notice account at any time. The amount of money that can be deposited into the FNB 32-day Flexi Notice account is not limited.
The account’s interest rates are tiered based on the amount saved in the account. To earn interest, the minimum required deposit of R5,000.00 will have to be maintained in the account.
The FNB 32-day Flexi Notice account comes with the following benefits:
- Capital that is deposited into the account is guaranteed until all is withdrawn.
- Returns on the capital invested are guaranteed.
- Interest can be capitalised or paid out depending on the customer’s wishes.
- There are no monthly fees attached to the account.
- The account gives account holders access to the FNB eBucks rewards program where they can earn rewards points.
- The account can be used to make payments to third parties.
Requirements of the FNB 32-Day Flexi Notice Account
- Have a minimum deposit of R5,000.00.
- Must be a South African citizen.
- Have a valid South African ID book or Smart card.
- Have proof of residence that is not older than 3 months at the time of application.
6. Standard Bank Notice Deposit Investment
The Standard Bank Notice Deposit investment account offers up to 6.40% interest and requires a R250.00 minimum opening deposit. Customers can select a notice period of 7, 14, 21, 32, 45, or 60 days with this account. The account has the highest interest rate for notice periods of 60 days.
The Standard Bank Notice Deposit has no monthly fee. However, there is an R120.00 penalty fee for early withdrawal. A cash deposit fee is applied when funds are deposited into the account.
Account holders have the ability to make unlimited deposits into the account. The account accepts deposits of up to R100 per deposit. There is no set amount that can be deposited into a Standard Bank Notice Deposit investment.
With the Standard Bank Notice Deposit investment account deposits are guaranteed. The interest rate quoted is also guaranteed unless the account holder withdraws from the account prematurely.
The interest on the notice deposit investment account is calculated and paid out on a daily basis. Earned interest is automatically capitalized so that the account can benefit from the compounding effect. The interest paid will be calculated based on the account balance, not the initial deposit.
Requirements of the Standard Bank Notice Deposit investment account
- Have a deposit of R250.00 or more.
- Must be 16 years or older at the time of application.
- Have a South African ID book or Smart card or a passport if not a South African citizen.
- Proof of residence that is not older than 3 months at the time of application
7. Nedbank 32-Day Notice Account
The Nedbank 32- Day Notice Account pays interest at a nominal rate of up to 6.30%. To activate the account, a R250.00 opening deposit is required. For the 32-Day Notice Account, Nedbank uses a tier-based interest allocation that is determined by the account balance.
The account pays 5.20% interest on balances ranging from R250.00 to R2499.00. The second tier is for those who invest R2500.00 to R24,999.00 and qualify for a 5.70% nominal interest rate.
Investors who invest R25,000.00 to R49,999.00 are classified as third-tier and earn an annual interest rate of 5.85%. Investors in the fourth tier invest between R50,000.00 and R99,999.00 and earn a 6% interest rate.
Tier 5 deposits range from R100,000 to R249,999.00, and these investors earn a 6.20% interest rate. The highest interest earners are those who deposit R250,000.00 or more and receive a 6.30% interest rate.
Benefits and features of the Nedbank 32-Day Notice Account
- 32 days’ notice is needed to make withdrawals in the account. Withdrawals start from R100.00.
- Interest can be paid out or capitalised.
- There are no monthly fees charged on the account.
- Multiple deposits can be made to the account but cash deposit fees may apply.
Requirements of the Nedbank 32-Day Notice Account
- Must have a minimum deposit of R250.00 or more.
- Have a valid South African ID book or Smart card or a passport if not a South African citizen.
- Proof of residence that is not older than 3 months at the time of application.
8. Discovery Bank Notice Account
Discovery Bank’s 90-day notice savings account pays 6.1% interest. The account requires a R1,000.00 minimum opening deposit. Other notice accounts offered by Discovery Bank include a 24-hour notice account, a 32-day notice account, and a 60-day notice account.
There are two types of 24-hour notice accounts. The first is a 24-hour notice account for balances less than R100,000. This account pays 4% interest on deposits of less than R100,000. The second 24-hour notice account charges 4.5% on savings over R100,000.
The Discovery Bank 32-Day Notice Account has an interest rate of 6.45% and requires a minimum deposit of R1,000.00 to open. A 60-day notice deposit offers a lower interest rate than the 32 Day account of 6%.
Requirements of the Discovery Notice Account
- Must have a valid South African ID book or Smart card.
- Have a minimum opening deposit of R1,000.00 to activate the account.
9. African Bank Notice Account
African Bank offers Notice Accounts that pay up to 5.85% interest. The Bank notice accounts require a minimum savings of R500.00 when activating it. African Bank offers notice accounts ranging from seven days to ninety days.
African Bank’s 7-day notice account has the lowest interest rate of 5.37% and an effective interest rate of 5.50%. The money invested in the 7 days notice account is accessible within 7 days.
A 32-day notice account has the second-lowest interest rate. The interest rate on African Bank’s 32-day notice account is 5.61%, with an effective interest rate of 5.75%.
The 90 days notice account offers the highest interest rate of all notice accounts offered by African Bank. African Bank 90 days notice account offers a 5.85% interest rate with an effective interest rate of 6%.
Requirements of the African Bank Notice Account
- Must have a valid South African ID book or Smart card or a passport if you are a foreign national, and
- Have a minimum opening balance of R500.00.
10. TymeBank GoalSave Account
The interest rate on the TymeBank GoalSave account ranges from 4% to 6%. The interest rate offered is determined by the number of notice days selected by the investor. The higher the interest rate, the longer one has to invest.
A notice period of 1 to 30 days provides a 4% interest rate. There is no minimum opening deposit required for this option. A 5% interest rate is available for those who are willing to save for a notice period of 31 to 90 days.
The highest interest rate available is 6% per year for notice periods of 90 days or more.
Requirements of the TymeBank GoalSave Account
- The current address of the applicant.
- A valid South African ID number.
Conclusion
Deposit accounts may require a minimum opening deposit to be activated; opening deposits vary by bank. It is critical to understand how much of an opening deposit is required to earn the highest interest rate. Opening deposits range from R500.00 to R25 million, depending on the bank.
Aside from the opening deposit, the percentage of the deposit that can be accessed on demand is an important consideration when opening a notice account. The amount available on demand will most likely determine the amount of interest that can be earned.
The notice days are also the biggest determinant of the interest rate that can be given for a notice account. Higher notice days always have the highest interest rate offered for a notice account.
