When considering to invest in a Fixed Deposit or Savings Account in South Africa, most people use the Interest Calculator to calculate the total interest one will earn over a certain period.
- Enter any amount to see how much your investment may yield*
- Our calculators are just intended to be a guide. Actual payment may vary based on the financial institution you choose, as well as the number of days in a month and interest rates at the time of investing.*
- This investment information is offered only for educational reasons. Rateweb does not provide advisory or brokerage services, nor does it advise or advocate that clients purchase or sell certain stocks, securities, or other products.*
The formular for Fixed Deposit Interest Calculator
A = P(1 + rt).
Where:
- A = Total Accrued Amount (principal + interest)
- P = Principal Amount
- I = Interest Amount
- r = Rate of Interest per year in decimal
- t = Time Period
What is a Fixed Deposit
Do you intend to keep your money in a savings account for a period of time? A fixed deposit account is a wise investment to consider.
A fixed deposit is a financial product issued by banks or non-bank financial institutions that pays investors a greater interest rate than a regular savings account until the maturity date.
At the conclusion of the agreed-upon defined time (term), the main investment is withdrawn. Interest may be removed at any time, whether monthly, quarterly, biannually, or yearly. Non-withdrawn interest is capitalised on a monthly or annual basis, depending on the policy of the financial institution.
Consider how long you want to invest your money and the interest rate range you desire when creating a fixed deposit account. The length and amount of investment in a fixed deposit account have the biggest effect on fixed deposit interest rates.
You may be interested to read our article on the Best Fixed Deposits Rates in South Africa