Investec offers a variety of fixed deposit accounts with time limits starting at six months. The savings account interest rate is highly competitive, starting at 4.27 % and rising to 5.85 %. The minimum investment is R100,000, while the maximum investment is R25 million or more.
The amount of interest that can be earned on a fixed deposit account is determined by the type of fixed deposit chosen and the amount of money invested. Investec offers the following fixed deposit accounts:
- Fixed-rate fixed deposit account,
- Prime linked rate fixed deposit account,
- Tax-Free Fixed-rate fixed deposit account, and
- Liquidfixed fixed deposit account
The accessible fixed deposit account caters to a wide range of investors, with the majority of people being attracted by their investment level. Furthermore, the length of time that funds are kept in a fixed deposit account is important.
Since there are many accounts to select from, the Investec Fixed Deposit Accounts provide versatility. In addition, capital contributions to the accounts are guaranteed. As a result, the cash invested will never be at risk.
There are no monthly service fees associated with the fixed deposit accounts provided. This allows account holders to earn interest without having to worry about paying fees. Fees will not erode capital, which may cause the account holder to start with a negative balance.
The accounts capitalize on interest profits in order to get the highest rate of return on investment. Interest is compounded monthly and capitalised automatically until the account matures. Providing compound interest that has been maximized for the account holder.
Investors will find value in the Investec Fixed Deposit accounts, which are described in detail below.
Investec fixed-term deposit account
Out of all the fixed deposit accounts, the Investec Fixed Term Deposit Account is the most popular. The account comes with capital and interest guarantees. To open an Investec Fixed Term Deposit account, a minimum deposit of R100,000.00 is required, with no maximum deposit amount.
The capital invested must be kept in the account for a month. One can invest for a maximum of 60 months to maximize the account’s earnings. The account’s interest rate is determined by how much money is put in and how long the investment will last.
Interest on the account is compounded monthly and subject to the agreed-upon interest rate. The interest that is earned on the account can be paid monthly to the account holder. Alternatively, the account holder can choose to capitalise the interest earnings and get the interest plus capital at the account’s maturity date.
Early withdrawal of the capital is not allowed on the account. Therefore, should one choose to invest for the maximum number of years, the capital will be kept for the period. Early withdrawal is at Investec’s sole discretion and can be done only under extreme circumstances. The early withdrawal comes with penalties and breakage costs.
The Investec Fixed Term Deposit Account comes with access to online banking. Account-holders can use their online banking to view the statements online, transactional history, and view or print their income tax certificates.
The Investec Fixed Term Deposit Savings Account comes with predetermined interest rates based on how much is deposited. Below is a table showcasing the potential earnings of the fixed deposit account.
Investec Fixed Term Deposit Savings Account rates
Investments/savings of R1,000,000.00 and more.
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 6.64% | 6.85% |
| 9 months | 6.14% | 6.27% |
| 6 months | 5.68% | 5.75% |
| 5 months | 5.15% | 5.19% |
| 4 months | 4.94% | 4.97% |
| 3 months | 4.78% | 4.80% |
| 2 months | 4.72% | 4.73% |
| 1 month | 4.67% | 4.67% |
Investments or savings of R250,000.00 to R1,000,000.00
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 6.64% | 6.85% |
| 9 months | 5.89% | 6.01% |
| 6 months | 5.43% | 5.49% |
| 5 months | 4.90% | 4.94% |
| 4 months | 4.69% | 4.72% |
| 3 months | 4.53% | 4.55% |
| 2 months | 4.47% | 4.48% |
| 1 month | 4.42% | 4.42% |
Investments or savings of R100,000.00 to R250,000.00
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 6.56% | 6.76% |
| 9 months | 5.69% | 5.80% |
| 6 months | 5.23% | 5.29% |
| 5 months | 4.70% | 4.74% |
| 4 months | 4.49% | 4.52% |
| 3 months | 4.33% | 4.35% |
| 2 months | 4.27% | 4.28% |
| 1 month | 4.27% | 4.27% |
Investec Prime-Linked fixed deposit account
Interest is offered based on the amount that is invested into the account and the duration of investment also plays a critical role. Interest that can be earned starts at 4.75% and can go as high as 5.78%. Interest on the account is compounded monthly.
Withdrawals on the account can be made at the maturity date. Termination of the savings account is at Investec’s sole discretion and can only be done under strict circumstances. Early termination will come with costs that the account holder will have to pay.
At the maturity date, the account will be cleared, meaning all the money in the account will be available to the account holder. The account holder will receive the capital deposited along with the interest that was earned over the duration of the investment.
The account doesn’t have any monthly fees attached to it. Only a breakage fee is charged for early withdrawal or early termination. An amount equal to 1% per annum of the sum withdrawn over the remainder of the notice period will be charged.
The Investec Prime linked fixed deposit account comes with predetermined fixed deposit rates. The rates for the account are listed below.
Investec Prime linked fixed deposit account rates
Rates for Investments or savings over R1,000,000.00
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 5.78% | 5.94% |
| 9 months | 5.37% | 5.47% |
| 6 months | 5.11% | 5.16% |
| 3 months | 4.85% | 4.87% |
Rates for Investments or savings between R500,000.00 to R1,000,000.00
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 5.78% | 5.94% |
| 9 months | 5.32% | 5.42% |
| 6 months | 5.06% | 5.11% |
| 3 months | 4.80% | 4.82% |
Rates for investments or savings between R100,000.00 to R500,000.00
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 5.78% | 5.94% |
| 9 months | 5.27% | 5.36% |
| 6 months | 5.01% | 5.06% |
| 3 months | 4.75% | 4.77% |
Investec Tax-Free Fixed Deposit Account
The Investec Tax-Free Deposit Account has the same restrictions that are imposed on a tax-free savings account. The account has a lifetime contribution restriction of R500,000.00 and a maximum yearly contribution of R36,000.00. However, the account requires a minimum deposit of R30,000.00 into the account.
Unlike a tax-free savings account, the Investec Tax-Free Fixed Deposit Account comes with interest guarantees. Therefore, for the duration of the investment, the interest that is earned is guaranteed by Investec. The investment has to be for a period of 12 months.
The Investec Tax-Free Fixed Deposit Account aims at providing liquidity for its account holders, therefore, money can be withdrawn from the account at any time. Money withdrawn from the account will be available within a period of 32 business days.
The investment returns on this account are subject to no taxation. Income tax won’t be levied. However, contributions to the account will have an impact on the yearly and lifetime contributions of one’s tax-free investments. It is ideal to take out the money from this account only when necessary.
The Investec Tax-Free Fixed Deposit Account comes with interest guarantees. The interest that is agreed upon applies for the duration of the account and it’s paid in favour of the account holder. Currently, the nominal interest rate for a 12 months investment is 6.84%.
The tax-free fixed deposit account has the following rates.
| Term | Nominal interest rate | Effective interest rate |
| 12 months | 6.84% | 7.06% |
Investec LiquidFixed Deposit
The Investec liquidfixed deposit allows account holders to customize their withdrawals and access to cash. This is done because not everyone wants all of their investment at a particular date and may prefer some to still be saved into the fixed deposit account.
The minimum investment duration for the Investec Liquidfixed deposit is 6 months. The maximum investment period on the account is 60 months. During this period, the account holder will have to set the accessibility of funds, terms and deposit amount.
The account is different from any fixed deposit account as this account comes with a dedicated help desk. The product also comes with free access to online banking. With online banking account holders can view their account statements including history transactions.
To get started with the Investec Liquidfixed deposit account, one has to invest a minimum of R100,000.00. The account doesn’t charge any fees for the account, therefore, account holders can expect to pocket all their earnings.
Interest on the account is quoted based on how much an account holder wants to access. Interest also depends on the duration of which one wants to access funds in the account. Interest can be as high as 5.85% and as low as 4.33%.
The Liquidfixed deposit account’s interest rates are predetermined. To know how much you can earn for saving money in this account check the rates on the next header.
Investec Liquidfixed deposit account rates
Rates For deposits between R100,000.00 to R1,000,000.00
| Available on demand % | ||||||
| Term | 0% | 10% | 20% | 30% | 40% | 50% |
| 6 months | 4.56% | 4.51% | 4.47% | 4.42% | 4.38% | 4.33% |
| 9 months | 4.82% | 4.75% | 4.68% | 4.60% | 4.53% | 4.46% |
| 12 months | 5.28% | 5.16% | 5.04% | 4.93% | 4.81% | 4.69% |
| 24 months | 5.40% | 5.27% | 5.14% | 5.01% | 4.88% | 4.75% |
| 36 months | 5.61% | 5.46% | 5.31% | 5.16% | 5.01% | 4.86% |
| 48 months | 5.75% | 5.59% | 5.42% | 5.26% | 5.09% | 4.93% |
| 60 months | 5.85% | 5.68% | 5.50% | 5.33% | 5.15% | 4.98% |
Rates For deposit between R1,000,000.00 and R10,000,000.00
| Term | Available on demand % | |||||
| Term | 0% | 10% | 20% | 30% | 40% | 50% |
| 6 months | 4.61% | 4.56% | 4.51% | 4.46% | 4.41% | 4.36% |
| 9 months | 4.87% | 4.79% | 4.72% | 4.64% | 4.56% | 4.49% |
| 11 months | 5.04% | 4.95% | 4.85% | 4.76% | 4.66% | 4.57% |
| 24 months | 5.40% | 5.27% | 5.14% | 5.01% | 4.88% | 4.75% |
| 36 months | 5.61% | 5.46% | 5.31% | 5.16% | 5.01% | 4.86% |
| 48 months | 5.75% | 5.59% | 5.42% | 5.26% | 5.09% | 4.93% |
| 60 months | 5.85% | 5.68% | 5.50% | 5.33% | 5.15% | 4.98% |
Rates for deposits between R10,000,000.00 and R25,000,000.00
| Term | Available on demand % | |||||
| Term | 0% | 10% | 20% | 30% | 40% | 50% |
| 6 months | 4.66% | 4.60% | 4.55% | 4.49% | 4.44% | 4.38% |
| 9 months | 4.92% | 4.84% | 4.76% | 4.67% | 4.59% | 4.51% |
| 12 months | 5.28% | 5.16% | 5.04% | 4.93% | 4.81% | 4.69% |
| 24 months | 5.40% | 5.27% | 5.14% | 5.01% | 4.88% | 4.75% |
| 36 months | 5.61% | 5.46% | 5.31% | 5.16% | 5.01% | 4.86% |
| 48 months | 5.75% | 5.59% | 5.42% | 5.26% | 5.09% | 4.93% |
| 60 months | 5.85% | 5.68% | 5.50% | 5.33% | 5.15% | 4.98% |
Advantages of the Investec Fixed deposit accounts
- The account protects one’s capital. Therefore, capital will always be protected regardless of market performance.
- Interest on the fixed deposit account is guaranteed and it is paid with capital contributions at the end of the term.
- There are different accounts to choose from, and choosing will depend on how much and for how long one wants to invest.
- The interest rates offered are competitive.
- There is no monthly service fee on accounts available.
- Account-holders don’t need to manage the accounts.
- Investment can go up to 60 months with money invested earning interest during the time.
Disadvantages of the Investec Fixed deposit accounts
- Early withdrawal from the account incurs fees.
Conclusion
Investec provides its customers with a lot of fixed deposit accounts to choose from, which can be applied for online. Account-holders can invest in more than one fixed deposit account, with some accounts providing tax benefits. Furthermore, the accounts provide competitive interest rates that can be enjoyed without the need to strictly monitor your investment.
