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Best fixed deposit rates in South Africa 2022 (Updated)

Are you considering putting your money in a savings account for a while? A fixed deposit account can be a good alternative to think about. The best fixed deposit rates in South Africa for 2022 will be listed and discussed in this article.

A Fixed Deposit Account is a savings account that pays interest on the principal amount invested after a financial institution agrees to hold the money for a set length of time.

The principal investment is withdrawn at the end of the agreed-upon fixed period (term), during which it would have generated interest. Interest can be taken out at any time, whether it’s monthly, quarterly, bi-annually, or annually. Interest that is not withdrawn is capitalized on a monthly basis.

In South Africa, there are several types of fixed deposit accounts to choose from. Before you put your money into a fixed deposit account, you should write out clear goals. As a result, you will be able to choose the appropriate fixed deposit account for your investing objectives.

When opening a fixed deposit account, you should think about how long you want to invest your money and what interest rate range you want to receive. You’ll need to pick a fixed deposit account to put your money in. Fixed deposit accounts include but are not limited to:

  • Notice Accounts,
  • Fixed deposit accounts,
  • Tax free savings accounts, and
  • Demand savings accounts

In this article, we’ll discuss the best fixed deposit rates in South Africa. We list the best interest rates on fixed deposit accounts for the following periods: 3 months, 6 months, 12 months, 24 months, and 60 months, because time is a factor when opening a fixed deposit account.

For each period, we list the best three fixed deposit rates that are available in South Africa as of 2022.

Overall Best Fixed Deposits Rates for 2022

RankingInstitutionNominal Interest Rate %Effective Rate %
1Standard Bank9.05%9.43%
2FNB9.00%9.38%
Capitec Bank9.00%9.38%
4African Bank8.80%9.16%
5Nedbank8.70%9.05%
Overall Best Fixed Deposits Rates for April 2022

Best 60 months fixed deposit rates 2022

RankBankMinimum Deposit Effective Interest Rate %Nominal Interest Rate %
1Standard BankR1,000.00+9.43%9.05%
2First National BankR10,000.00+9.38%9.00%
Capitec BankR100,000.00+9.38%9.00%
Best 60 months fixed deposit rates 2022

1. Standard Bank

The first place goes to Standard Bank, which offers a nominal interest rate of 9.05 percent on a 60-month fixed deposit. 9.43 percent is the effective interest rate. One must hold their money for 60 months in order to receive 9.43 percent interest on their investment. A minimum investment of R1,000.00 is required to earn a return of 9.05 percent, however, interest granted is subject to a special underwriting by Standard Bank.

2. FNB

Standard bank offers a number of fixed deposit accounts to individuals in South Africa with competitive interest rates. The

Individuals in South Africa can take advantage of a variety of fixed deposit accounts with excellent interest rates offered by FNB. The Fixed Deposit Investment Account of the bank requires a minimum deposit of R10,000.00 to open a 60-month fixed deposit account.

Investors gain a 9.38% effective interest rate on their investment in the 60-months fixed deposit account. The annual nominal interest rate is 9%. At maturity, the money in your FNB Fixed Deposit Investment Account is yours to keep.

2. Capitec Bank

Capitec Bank and FNB are tied for second place in terms of best interest rates for a 60-month fixed deposit account. A nominal interest rate of 9% is offered on the Capitec Bank 60-month fixed deposit account.

The account’s effective interest rate is 9.38 percent. To be eligible for the interest rate, the account must have a minimum balance of R100,000.00 invested for a 60 months period.

Best 48 Months Fixed Deposit Rates 2022

RankBankMinimum DepositEffective Interest Rate %Nominal Rate %
1Capitec BankR100,001.00+8.30%8.00%
2Absa BankR100,001.00+8.15%7.86%
3First National BankR1,000,000.00+7.76%7.50%
Best 48 Months Fixed Deposit Rates 2022

1. Capitec Bank

Capitec Bank offers up to 8% in nominal interest rate for 48 months fixed deposit account. The rate of interest that Capitec Back offers is mainly dependent on the amount of investment that a client wants to deposit. The minimum deposit for a 48 months fixed deposit account is R100,001.00.

2. Absa Bank

Absa bank comes in at number two for the best 48 months fixed deposit rate offering a 8.15% effective interest rate. The nominal rate of interest for the account is 48 months fixed deposit is 7.86%. However, the account is for investors who deposit R100,001.00 or more into their fixed deposit account.

3. First National Bank

First National Bank offers a 7.76% effective interest rate on their 48 months fixed deposit account. The nominal interest rate for the 48 months fixed deposit account is 7.50%. To qualify for the nominal rate of 7.50%, clients need to invest a minimum amount of R1,000,000.00.

Best 36 Months Fixed Deposit Rates 2022

RankBankMinimum DepositEffective Interest Rate %Nominal Interest Rate %
1SA Retail BondsR1,000.00+8.94%8.75%
2Capitec BankR100,001.00+7.76%7.50%
3African BankR500.00+7.25%7.02%
Best 36 Months Fixed Deposit Rates 2022

1. SA Retail Bonds

SA Retail Bonds offers the best interest rate for a 36 months fixed deposit investment. The institution offers a 8.75% nominal interest rate and requires a R1,000.00 minimum investment which should be kept for 36 months to earn the highest interest available. The effective interest rate on the account is 8.94%.

2. Capitec Bank

Capitec bank offers the second-best nominal interest for 36 months fixed deposit account with a 7.50% nominal interest rate. The account has an effective interest rate of 7.76%. The minimum deposit for this account is R100,001.00.

3. African Bank

With a minimum investment of R500.00, clients receive a nominal interest rate of up to 7.02%. The effective interest rate for such investment is 7.25%.

Best 24 months fixed deposit rates

RateBankMinimum DepositEffective Interest Rate %Nominal Interest Rate %
1SA Retail BondsR1,000.00+8.16%8.00%
2Capitec BankR100,001.00+7.50%7.25%
3Discovery BankR100,000.007.06%6.85%
Best 24 months fixed deposit rates

1. SA Retail Bonds

Banks are offering higher fixed deposit rates to attract high-quality investors; this trend produces competitive rates in the market, which is an advantage to you as an investor.

SA Retail Bonds offers a 8% nominal interest rate for its 24 months fixed deposit account with a minimum deposit of R1,000.00.

While the principal amount can be accessed at maturity, your interest payouts can be received monthly, every 6 or 12 months.

2. Capitec Bank

Capitec Bank offers up to a 7.25% interest rate from a deposit of at least R100,000.00 for their 24 months fixed deposit account. The effective interest rate of the account is 7.50%.

3. Discovery Bank

Wrapping up our top 3 in the 24 months best fixed deposit rates is Discovery Bank which offers a 6.85% nominal interest rate which is one of the most enticing rates in South Africa in this category. The account has an effective interest rate of 7.06% and to achieve this interest rate feat, as an investor you must invest a minimum amount of R10,000.00.

Digital banking in South Africa has increased in recent years creating growth in the need for more banking products. New banks have emerged and are seeking to revolutionise the way we bank in South Africa.

Discovery Bank is one bank that takes internet banking seriously and has introduced behavioural banking to encourage healthy banking. As a new bank, Discovery bank has some of the best fixed deposit accounts in South Africa.

Best 12 months fixed deposit rates

RatingBankMinimum DepositEffective Interest RateNominal Interest Rate
1Capitec BankR100,000.00+6.70%6.50%
2Sasfin BankR10,000.00+6.65%6.46%
3Bidvest BankR10,000.00+6.50%6.31%
Best 12 months fixed deposit rates

1. Capitec Bank

Capitec Bank offers the best interest rate for a 12 months fixed deposit account. The account comes with a 6.50% nominal interest rate that compounds monthly. The account requires a minimum deposit of R100,000+ to get the highest interest rate. An effective interest rate of 6.70% can be achieved during the period.

2. Sasfin Bank

Despite the wave of rate cuts this year, Sasfin bank has continued to offer very competitive rates among its competitors.

From a minimum of R10,000.00 deposit amount, you can earn an impressive interest rate of 6.46% per annum.

3. Bidvest Bank

Bidvest Bank is offering very competitive rates on a 12 month fixed deposit account. The 12 months fixed deposit account offers a 6.31% nominal interest rate which requires a minimum investment of R10,000.00. The effective interest rate on the Bidvest Bank 12 months fixed deposit account is 6.50%.

Best 6 months fixed deposit rates

RatingBankMinimum DepositEffective Interest RateNominal Interest Rate
1Bidvest BankR10,000.005.33%5.27%
2Absa BankR100,001.005.22%5.10%
3Discovery BankR10,000.005.05%5.00%
Best 6 months fixed deposit rates

Investing for the shortWhen saving money in a fixed deposit account, investing for the short term might also provide favorable outcomes. A 6-month fixed deposit account will pay you compounded monthly interest.

Here are 3 banks offering the best 6 months fixed deposit rates in South Africa:

1. Bidvest Bank

For a 6-month fixed deposit account, Bidvest Bank gives the highest interest rate. You must invest at least R10,000.00 in the 6 months fixed deposit account to receive the highest interest rate. The maximum rate of interest available at maturity is 5.27%.

2. Absa Bank

The account offers a 5.10% nominal interest rate, however, the account requires a minimum deposit of R100,001.00 deposit to For a 6-month fixed deposit account, Absa Bank gives the second best interest rate. The account has a nominal interest rate of 5%, however it requires a minimum deposit of R100,001.00 to open. The account’s effective interest rate is 5.22%.

3. Discovery Bank

The 6 months fixed deposit account from Discovery bank requires a minimum deposit of R10 000. The nominal interest rate that you earn on the account is 5% with the effective interest rate at 5.05%.

 Best 3 months fixed deposit rates

RatingBankMinimum DepositEffective Interest RateNominal Interest Rate
1African BankR500.004.45%4.41%
2Investec BankR1,000,000,004.42%4.33%
3Bidvest BankR10,000.004.33%4.31%
 Best 3 months fixed deposit rates

1. African Bank

African Bank offers the best interest rate for a 3 months fixed deposit account. The account offers a nominal interest of 4.41% which is compounded monthly. The effective interest rate on the account is 4.45%. A minimum investment of R500.00 is required to open the account.

2. Investec Bank

Investec bank offer the second best fixed deposit rate for a 3 months investment. The bank offers a 4.33% nominal interest rate. The effective rate is 4.42%. To earn the interest rate quoted, you need to invest a minimum amount of R1,000,000.00.

3. Bidvest Bank

A 3 months term fixed deposit account with Bidvest Bank can earn you a 4.31% interest at the end of the term. The nominal interest rate on Bidvest Bank’s 3 months fixed deposit account is 4.33%.

FREQUENTLY ASKED QUESTION (FAQ)

What is the minimum period for a fixed deposit?

The most common minimum period for a fixed deposit in South Africa is 3 months.

What is a Fixed Deposit?

In South Africa a fixed deposit account is a savings account tied to a certain time period. Once the capital has been invested and the timeframe (e.g., 12 months, 24 months, or 60 months) has been determined, the interest rate is fixed and locked in until the end of the specified time period.

For example, suppose a deposit is placed for 60 months at 8% but is withdrawn after 24 months. If the appropriate rate on the date of deposit for 24 months is 5%, the interest will be paid at that rate. Banks can levy a penalty for early withdrawal.

Which bank has the highest FD interest rates in South Africa?

Standard Bank has the best fixed deposit rate for 2022, with a rate of 9.05%, followed by Capitec Bank and First National Bank, all with 9.00% rates, and African Bank, in fourth position, with an 8.80% interest for a 60-month Fixed Deposit Investment. Although Standard Bank’s fixed deposit rates are now the best in the country, it’s important to compare competitors before choosing a Standard Bank fixed deposit account; check our rankings below for more information.

Can I get monthly interest on a fixed deposit?

Yes, fixed deposit interest can be paid monthly, however this is mostly dependent on the institution with which you have an account. Some institutions may agree to pay you interest on a monthly basis after your fixed deposit has been held for a certain period of time. Some may be able to do so only after the maximum duration has elapsed.  In essence, some banks are flexible while others are not; you should contact your preferred bank for further information.

What is the benefit of a Fixed Deposit?

Fixed deposits provide guaranteed returns. When you open a Fixed Deposit account, the interest rate you are provided remains fixed during your tenure of investment. Even if interest rates in the broader market fall, your Fixed Deposit will not be affected. As a result, you don’t have to be concerned about the market fluctuations.

Can you lose money in a Fixed Deposit?

Yes, you can lose money in a fixed deposit. Inflationary pressures can have an adverse impact on Fixed Deposit returns. For example, if the rate of inflation is 7% and you invest in an FD with a return of 6.2%, you will actually lose 0.8%. That is why market-related investments such as equities, bonds and mutual funds are gaining popularity; they have been shown to easily surpass inflation.

Conclusion

Fixed deposits ensure capital protection and uniform flow of income. If you are risk-averse and do not want equity exposure, you might have to really consider them.

Best fixed deposit rates in South Africa 2022 (Updated)

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