June 2024 guide to South Africa’s best fixed deposit rates: Find the top banks and financial institutions for maximum savings growth. Essential info for investors.
Compare Fixed Deposit Rates
| Bank | 3 Months | 6 Months | 12 Months | 24 Months | 36 Months | 60 Months |
|---|---|---|---|---|---|---|
| SA Retail Bonds | 5.5% | 6.0% | 7.0% | 7.5% | 8.0% | 8.5% |
| Access Bank | 5.4% | 5.9% | 6.9% | 7.4% | 7.9% | 8.4% |
| Sasfin Bank | 5.3% | 5.8% | 6.8% | 7.3% | 7.8% | 8.3% |
| TymeBank | 5.2% | 5.7% | 6.7% | 7.2% | 7.7% | 8.2% |
| Capitec Bank | 5.1% | 5.6% | 6.6% | 7.1% | 7.6% | 8.1% |
| FNB | 5.0% | 5.5% | 6.5% | 7.0% | 7.5% | 8.0% |
| Investec Bank | 4.9% | 5.4% | 6.4% | 6.9% | 7.4% | 7.9% |
| Bidvest Bank | 4.8% | 5.3% | 6.3% | 6.8% | 7.3% | 7.8% |
In June 2024, the SA Retail Bonds fixed deposit offers the most attractive fixed deposit rate in South Africa. It boasts a nominal interest rate of 11.50%, resulting in an effective interest rate of 12.27%. To open an account, a minimum deposit of R1,000.00 is required, which must be held for a 5-year term (60 months).
In 2024, South Africa’s investment landscape offers a diverse range of fixed deposit accounts, each with distinct interest rates and terms, catering to investors seeking stability and security for their savings.
This comprehensive guide is your key to navigating the world of fixed deposit accounts, offering the latest information on the best interest rates available in South Africa for 2024. We’ll delve into the specifics of taxation, account safety, and crucial factors to consider when choosing the ideal fixed deposit account to meet your financial goals.
Fixed Deposit Calculator
Understanding Fixed Deposit Accounts
What is a Fixed Deposit Account?
A fixed deposit account, also known as a term deposit, offers a fixed interest rate over a specified period, providing a secure way to grow savings. It’s a popular choice for South African investors looking for stable returns.
How Fixed Deposit Accounts Work
Explains the mechanics of fixed deposit accounts, including depositing, interest rates, maturity periods, and the concept of capital protection.
What to consider when choosing a FD account
When selecting a fixed deposit account, consider the following factors:
Interest Rate
Interest rates vary depending on the bank and the duration of the fixed deposit. Longer-term deposits often offer higher interest rates. Always compare rates to maximize your returns.
Minimum Opening Balance
Different banks have varying minimum deposit requirements. Ensure that the minimum opening balance aligns with your financial capacity.
Maturity Date
Determine how long you want to invest your money. Fixed deposit terms range from a few months to several years. Match your investment horizon with the appropriate term.
Early Withdrawal Penalties
Be aware of any penalties associated with early withdrawals. Some banks charge fees for accessing funds before the maturity date.
Interest Payout Options
Understand how the interest is paid out. It can be on a monthly, quarterly, biannual, or annual basis, depending on your preference.
When opening a fixed deposit account, consider how long you want to invest your money and the interest rate range you want. The duration and amount of investment in a fixed deposit account have the greatest influence on interest rates on fixed deposit accounts. Remember to checkout our Fixed Deposit Interest Calculator.
This article is your guide to discovering the most attractive fixed deposit rates in South Africa. We’ll delve into various fixed deposit durations, ranging from 3 months to 60 months. It’s important to note that prominent banks typically offer the most competitive interest rates for fixed deposit accounts spanning 36 to 60 months. Conversely, interest rates for shorter to medium-term investments tend to be dominated by medium and smaller financial institutions.
In the following sections, we will provide comprehensive insights into each fixed deposit account category, showcasing the top three current rates for each.
Best 60 months fixed deposit rates 2024
| Bank | Minimum Deposit | Nominal Interest Rate | Effective Interest Rate |
|---|---|---|---|
| SA Retail Bonds | R1,000 | 11.50% | 12.27% |
| Access Bank | R1 | 10.45% | 10.95% |
| Sasfin Bank | R20,000 | 10.25% | 10.75% |
1. SA Retail Bonds:
Leading with a nominal interest rate of 11.50%, resulting in an effective rate of 12.27%. The account requires a minimum deposit of R1,000, making it accessible for many investors.
2. Access Bank:
Offers a competitive rate of 10.45% with a minimal deposit requirement of R1, making it a highly accessible option.
3. Sasfin Bank:
Provides a solid 10.25% nominal rate, with an effective rate of 10.75%. However, it requires a higher minimum deposit of R20,000.
Best 48 Months Fixed Deposit Rates 2024
| Ranking | Bank | Minimum Deposit | Nominal Interest Rate % | Effective Interest Rate % |
|---|---|---|---|---|
| 1 | Access Bank | R1.00 | 10.10% | 10.58% |
| 2 | Capitec Bank | R1,000,000.00 | 9.30% | 9.71% |
| 3 | FNB | R1,000,000.00 | 9% | 9.38% |
1. Access Bank
Taking the lead with a robust 10.10% nominal interest rate, Access Bank offers an impressive 10.58% effective interest rate. What makes this option even more enticing is the accessibility, requiring a minimal deposit of just R1.00. This means investors can potentially enjoy substantial returns with a modest financial commitment, making it an excellent choice for those seeking high-yield investments without significant initial investment requirements.
2. Capitec Bank
Securing the second position, Capitec Bank offers a competitive 9.30% nominal interest rate, translating to a solid 9.71% effective interest rate. Although the minimum deposit requirement is R1,000,000.00, this option caters to investors looking for stable and lucrative growth opportunities over the 48-month term. Capitec Bank’s offering balances attractive returns with a moderate investment threshold.
3. FNB
In the third spot, FNB provides a 9% nominal interest rate, resulting in a respectable 9.38% effective interest rate. Like Capitec Bank, FNB requires a minimum deposit of R1,000,000.00. This choice is ideal for investors who prioritize stability and consistent returns, making it a prudent option for long-term financial planning.
Best 36 Months Fixed Deposit Rates 2024
| Ranking | Bank | Min Deposit | Nominal Interest Rate (%) | Effective Interest Rate (%) |
|---|---|---|---|---|
| 1 | SA Retail Bonds | R1,000.00 | 10.25% | 10.75% |
| 2 | Sasfin | R20,000.00 | 10.00% | 10.47% |
| 3 | Access Bank | R1.00 | 9.80% | 10.20% |
- SA Retail Bonds
Leading the pack, SA Retail Bonds offer a compelling 10.25% nominal interest rate, resulting in an attractive 10.75% effective annual rate. With a minimum deposit of R1,000, it caters to a wide range of investors seeking stable growth over a 36-month term.
2. Sasfin
In second place, Sasfin boasts an impressive 10.00% nominal interest rate, translating to an appealing 10.47% effective annual rate. Requiring a R20,000 minimum deposit, Sasfin presents an opportunity for substantial returns, ideal for those seeking significant long-term growth.
3. Access Bank
Securing the third spot, Access Bank provides a competitive 9.80% nominal interest rate, resulting in a solid 10.25% effective annual rate. With a minimum deposit of just R1, this option ensures attractive returns for even the most cautious investors prioritizing stability and consistent growth.
Best 24 months fixed deposit rates 2024
| Ranking | Bank | Min Deposit | Nominal Interest Rate (%) | Effective Rate (%) |
|---|---|---|---|---|
| 1 | Sasfin Bank | R20,000.00 | 9.80% | 10.78% |
| 2 | SA Retail Bonds | R1,000.00 | 9.75% | 10.65% |
| 3 | Access Bank Plc | R1.00 | 9.55% | 9.98% |
- Sasfin Bank
Taking the lead, Sasfin Bank offers an enticing 9.80% nominal interest rate, resulting in an impressive 10.78% effective annual rate. With a R20,000 minimum deposit, it provides a secure option for investors seeking substantial returns over a 24-month term.
2. SA Retail Bonds
Coming in second, SA Retail Bonds present a reliable choice with a 9.75% nominal interest rate, yielding a steady 10.65% effective annual rate. With a R1,000 minimum deposit, this option balances accessibility with consistent growth, making it appealing for those seeking stability and dependable returns over 24 months.
3. Access Bank Plc
Also claiming the second spot, Access Bank Plc delivers a competitive 9.55% nominal interest rate, ensuring a solid 9.98% effective annual rate. Notably, the minimum deposit is just R1, making it accessible to a wide range of investors seeking attractive returns.
Best 12 months fixed deposit rates 2024
| Ranking | Bank | Minimum Deposit | Nominal Interest Rate % | Effective Interest Rate % |
|---|---|---|---|---|
| 1 | TymeBank | R1.00 | 10.44% | 11% |
| 2 | Access Bank | R0.01 | 9.50% | 9.92% |
| 2 | Sasfin Bank | R20,000.00 | 9.50% | 9.92% |
1. TymeBank
Seizing the first position, TymeBank offers an impressive 10.44% nominal interest rate, translating into an exceptional 11% effective interest rate. With a remarkably low minimum deposit requirement of just R1.00, TymeBank opens the door to high-yield investments for all. Positioned as the frontrunner, TymeBank promises substantial growth potential for short-term investors, ensuring a robust foundation for your financial aspirations.
2.Access Bank
Claiming the second spot, Access Bank presents a competitive option with a 9.50% nominal interest rate, resulting in a solid 9.92% effective interest rate. Requiring a minimum deposit of R0.01, African Bank strikes a balance between accessibility and considerable growth. This choice caters to investors seeking stability and reliable returns over the 12-month duration, making it an appealing prospect for a diverse range of financial goals.
2. Sasfin Bank
Tied at the 2nd position, Sasfin Bank offers a reliable option with a 9.50% nominal interest rate, ensuring a consistent 9.92% effective interest rate. With a minimum deposit requirement of R20,000.00, Sasfin Bank provides a stable platform for investors with a slightly larger capital base. Positioned as a trusted choice, Sasfin Bank combines security and growth, making it a dependable partner for your year-long investment plans.
Best 6 months fixed deposit rates 2024
| Ranking | Bank | Min Deposit | Nominal Interest Rate (%) | Effective Interest Rate (%) |
|---|---|---|---|---|
| 1 | Access Bank | R5,000,000.00 | 9.00% | 9.38% |
| 2 | Bidvest Bank | R500.00 | 8.90% | 9.06% |
| 3 | Sasfin Bank | R20,000.00 | 8.66% | 8.82% |
1. Access Bank
Leading the pack, Access Bank offers a nominal interest rate of 9.00%, translating into an effective interest rate of 9.38%. With a minimum deposit requirement of R5,000,000.00, Access Bank caters to investors with significant capital, promising substantial returns over the 6-month period.
2. Bidvest Bank
Securing the second spot, Bidvest Bank offers a reliable option with a nominal interest rate of 8.90%, translating into an effective interest rate of 9.06%. With a minimum deposit requirement of R10,000.00, Bidvest Bank provides a solid foundation for investors looking for stable returns and security in their 6-month investment.
3. Sasfin Bank
Claiming the third position, Sasfin Bank presents a compelling option with a nominal interest rate of 8.66%, ensuring an effective interest rate of 8.82%. Requiring a minimum deposit of just R20,000.00, Sasfin Bank strikes a balance between accessibility and noteworthy growth.
Best 3 months fixed deposit rates 2024
| Ranking | Bank | Min Deposit | Nominal Interest Rate % | Effective Interest Rate % |
|---|---|---|---|---|
| 1 | TymeBank | R1.00 | 8.90% | 9.30% |
| 2 | Access Bank | R5,000,000.00 | 8.60% | 8.95% |
| 3 | Bidvest | R10,000.00 | 8.54% | 8.60% |
1. TymeBank
Leading the chart, TymeBank offers a nominal interest rate of 8.90%, translating into an effective interest rate of 9.30%. Requiring a minimum deposit of R1.00, TymeBank caters to investors seeking substantial returns within a 3-month timeframe.
2. Access Bank
Securing the second position, Access Bank provides an attractive offer with a nominal interest rate of 8.60%, resulting in an effective interest rate of 8.95%. With a minimum deposit requirement of just R5,000,000.00, Access Bank opens the doors of short-term investment to a wide range of investors.
3. Bidvest Bank
Claiming the third spot, Bidvest Bank offers a stable platform with a nominal interest rate of 8.54%, ensuring an effective interest rate of 8.60%. Requiring a minimum deposit of R10,000.00, Bidvest Bank appeals to investors looking for a balanced blend of security and modest growth within a 3-month horizon.
Safety and Taxation of South African Fixed Deposit Accounts
When it comes to financial investments, safety and taxation are two crucial aspects that should be on every South African investor’s radar. Fixed deposit accounts, known for their stability and predictable returns, offer a secure avenue for growing your savings. In this section, we’ll explore the safety of fixed deposit accounts and shed light on how they are taxed in South Africa.
Safety of Fixed Deposit Accounts
One of the primary reasons fixed deposit accounts are favoured by investors in South Africa is their safety. Here’s why they are considered a secure option:
1. Capital Protection: Fixed deposit accounts provide capital protection, meaning your initial deposit is safe and will be returned to you in full at the end of the agreed-upon investment term. This assurance makes them an attractive choice for risk-averse investors.
2. Guaranteed Returns: With fixed deposit accounts, you know precisely how much interest you will earn. The interest rate is fixed for the duration of the investment, offering predictability and peace of mind.
3. Regulatory Oversight: Banks and financial institutions in South Africa that offer fixed deposit accounts are subject to strict regulatory oversight by institutions such as the Reserve Bank. These regulations are in place to safeguard the interests of depositors and maintain the stability of the banking sector.
4. Financial Institution Reputation: Established and reputable banks are often the primary providers of fixed deposit accounts. Investing with well-known institutions adds an extra layer of security to your savings.
Taxation of Fixed Deposit Accounts in South Africa
Understanding the tax implications of your investments is essential for sound financial planning. Here’s what you need to know about the taxation of fixed deposit accounts in South Africa:
1. Taxable Interest Income: The interest you earn from fixed deposit accounts is considered taxable income in South Africa. This means you are required to pay tax on the interest you receive.
2. Interest Withholding Tax (IWT): South African banks are responsible for deducting interest withholding tax (IWT) from the interest paid to account holders. The current IWT rate is 15%, but the rate may differ depending on your tax status. The deducted tax is typically remitted to the South African Revenue Service (SARS) on your behalf.
3. Declaration of Interest Income: It’s crucial to declare the interest income earned from your fixed deposit accounts when filing your annual income tax return. Failure to do so may result in penalties and legal consequences.
4. Tax-Free Savings Accounts (TFSAs): South Africa offers tax-free savings accounts (TFSAs) as an alternative to regular fixed deposit accounts. Interest earned in a TFSA is tax-free, up to a specified annual limit. This option can be attractive for those looking to minimize their tax liability.
5. Early Withdrawal Implications: If you decide to withdraw funds from your fixed deposit account before the maturity date, you may still be liable for tax on the interest earned up to that point. Early withdrawals can also result in penalties or reduced interest payments.
By being aware of the taxation rules and safety features associated with fixed deposit accounts, you can make informed decisions that align with your financial goals and risk tolerance.
Fixed Deposit Calculator
FREQUENTLY ASKED QUESTION (FAQ)
1. Which bank has the highest interest rate for fixed deposits?
Currently, SA Retail Bonds offer some of the highest interest rates for fixed deposits, with rates up to 8.5% for longer-term investments.
2. What are the best fixed deposit interest rates in South Africa?
The best fixed deposit interest rates in South Africa vary by bank and term length. Some top options include SA Retail Bonds, Access Bank, and Sasfin Bank.
3. What factors should I consider when choosing a fixed deposit?
Consider the interest rate, term length, minimum deposit amount, bank’s reputation, and penalties for early withdrawal.
4. How do fixed deposits work?
Fixed deposits involve depositing a sum of money for a specified period at a predetermined interest rate. The interest is usually paid at the end of the term.
5. Can I withdraw my fixed deposit early?
Yes, but early withdrawal often incurs penalties, and you may lose some or all of the interest earned.
6. Are fixed deposits a good investment?
Fixed deposits are a safe investment option offering guaranteed returns, making them ideal for risk-averse investors.
7. How is interest calculated on fixed deposits?
Interest is typically calculated on a simple interest basis for the term of the deposit, based on the principal amount and interest rate.
8. What is the minimum amount required for a fixed deposit?
The minimum deposit amount varies by bank and can range from R1,000 to R10,000 or more.
9. Do fixed deposits have tax implications?
Yes, interest earned on fixed deposits is subject to income tax. However, there are exemptions and thresholds depending on your total income.
10. What are the alternatives to fixed deposits?
Alternatives include savings accounts, money market accounts, bonds, and other investment products that might offer higher returns with varying degrees of risk.
11. Which bank is best for investment in South Africa?
It depends on your investment goals. Banks like SA Retail Bonds, Capitec Bank, and Investec are popular for their competitive interest rates and investment products.
12. How do I open a fixed deposit account?
You can open a fixed deposit account by visiting a bank branch or through online banking platforms. Required documents usually include ID, proof of residence, and proof of income.
13. What is the interest rate on 1 million rand per month in South Africa?
The interest earned depends on the fixed deposit rate and term length. For example, at a rate of 7% per annum, 1 million rand would earn approximately R5,833 per month before tax.
14. Are fixed deposit rates negotiable?
Generally, fixed deposit rates are fixed and non-negotiable. However, some banks may offer better rates for larger deposits or longer terms.
15. What happens at the end of the fixed deposit term?
At the end of the term, you can either withdraw your funds with interest, reinvest in another fixed deposit, or transfer the amount to another account.
Fixed Deposit Calculator
Conclusion
South Africa’s fixed deposit market offers diverse opportunities for investors. For long-term commitments of 60 months, Access Bank lead with an impressive 10.45% interest rate. In the 48-month category, Access Bank stands out at 10.10%, requiring just R0.01 initial deposit. Sasfin dominate the 36-month term at 10.00%. Over 24 months, Sasfin Bank shines with a 9.80% rate. For 12 months, TymeBank leads at 10.44%, requiring only R1.00. Lastly, for 6 and 3 months, Access Bank offers competitive rates at 9.00% and 8.60% respectively. Choose wisely based on your investment goals and horizon
