Categories: Banking Money Advice

Best fixed deposit rates in South Africa 2021

Thinking of locking your money for some time? A fixed deposit account can be a viable option to consider.

A Fixed Deposit is more like a savings account, however, your investment has an expiry date and a fixed rate.

The principal investment is withdrawn at the end of the fixed period (term) as agreed at the time of deposit and at that stage it would’ve earned interest.

There are different types of fixed deposit accounts that one can invest in in South Africa. To get the best out of a fixed deposit investment, you have to pen down clear goals before locking your money into a fixed deposit account.

Things that you need to consider when opening a fixed deposit account include the period that you are willing to invest your money and the interest rate range that you desire to earn.

In this article, we discuss the best-fixed deposit rates that are available in South Africa. Since time is a factor when opening a fixed deposit account, we will list the highest fixed deposit accounts in terms of interest rates for periods of 3 months, 6 months, 12 months, 24 months, and 60 months.

On each period, we will list the best three fixed deposit rates that are available in South Africa as of 2021.

Overall Best Fixed Deposits Rates for 2021

RankingInstitutionEffective Rate %
1African Bank11.11%
2Discovery Bank8.35%
3First National Bank (FNB)8.00%
4Capitec Bank7.99%
5Nedbank7.51%

African Bank has the best-fixed deposit rate for 2021 offering 11.11% interest rate, followed by Discovery Bank with 8.35% with First National Bank coming third with a 8.00% effective interest rate for 60 months investment.

Best 60 months fixed deposit rates 2021

RankBankMinimum Deposit Effective Interest Rate %Nominal Interest Rate %
1African BankR50011.11%9.23%
2Discovery BankR10,000.008.35%7%
3First National BankR10,000.008.00%_

1. African Bank

African bank comes first with a nominal interest rate of 9.23% for a 60 months fixed deposit investment. The effective interest is calculated at 11.11% while the semi-annual interest is calculated at 9.03%. The minimum investment for a 60 months fixed deposit account is R500.00.

2. Discovery Bank

Discovery bank offer a number of fixed deposit account with competitive interest rates. The bank’s 60 months fixed deposit account require a minimum of R10,000.00 to be deposited.

For a 60 months fixed deposit account, investors get to earn 8.35% effective interest rate on their investment. The nominal interest rate is 7% per annum.

3. First National Bank

First National Bank offer fixed deposit accounts for those under the age of 55 and for those over the age of 55. The bank has better interest rate for a 60 months fixed deposit account for those under the age of 55. A fixed deposit account for a 60 months investment yield a 8.00% effective interest rate for those under the age of 55.

The 8% effective interest rate puts FNB at number 3 nationwide. However, a minimum deposit of R1,000,000.00+ is required.

Best 48 Months Fixed Deposit Rates 2021

RankBankMinimum DepositEffective Interest Rate %Nominal Rate %
1NedbankR5,000.007.50%7.25%
2First National BankR10,000.006.90%
3Capitec BankR100,000.006.816.61%

1. Nedbank

Nedbank offers up to 7,25% in nominal interest rate for a 48 months fixed deposit account. The amount of interest that Nedbank offers is mainly dependent on the amount of investment that a client want to deposit. The minimum deposit for a 48 months fixed deposit account is R5,000.00.

2. First National Bank

First National Bank offer 6.9% effective interest rate on their 48 months fixed deposit account for those under the age of 55.

3. Capitec Bank

Capitec bank comes in at number three for the best 48 months fixed deposit rate offering 6.81% effective interest rate. The nominal rate of interest for the account is 48 months fixed deposit is 6.61%. However, the account is for investors who deposit R100,000.00 or more into their fixed deposit account.

The minimum deposit on a 48 months fixed deposit account is R10,000.00 and earns an annual interest of 6.41% with an effective interest rate of 6.60%.

3.

Best 36 Months Fixed Deposit Rates 2021

RankBankMinimum DepositEffective Interest Rate %Nominal Interest Rate %
1African BankR500.008.08%7.5%
2Discovery BankR10,000.007.64%6.9%
3Capitec BankR100,000.006.39%6.21%

1. African Bank

African bank offer 7.5% annual interest rate for their 36 months fixed deposit account. The account’s semi-annual interest rate is 7.37% and its effective interest rate is 8.08%.

2. Discovery Bank

Discovery bank comes in third with 6.9% nominal interest rate for a 36 months fixed deposit account, The account’s effective interest rate is 7.64% at maturity. The minimum deposit for this account is R10,000.00.

3. Capitel Bank

With a minimum investment of R100,000.00 you can receive a nominal interest rate of up to 6.21%. The effective interest rate for such investment is 6.38%.

Best 24 months fixed deposit rates

RateBankMinimum DepositEffective Interest Rate %Nominal Interest Rate %
1Afircan BankR500.007.52%7.25%
2Discovery BankR10,000.007.03%6.6%
3Capitec BankR100,000.006.15%5.98%

1. African Bank

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

African Bank took this as an opportunity to re-capitalize after its collapse and being put under curatorship in 2014. Their rates have grown to be very competitive over the previous years to date.

The bank offers 7.25% nominal interest rate for its 24 months fixed deposit account with a minimum deposit of R500.

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

2. Discovery Bank

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 behavioral banking to encourage healthy banking. As a new bank, Discovery bank has some of the best-fixed deposit accounts in South Africa.

Discovery Bank offers up to 6.6% interest rate from a deposit of at least R10 000 for their 24 months fixed deposit account. The effective interest rate of the account is 7.03%.

3. Capitec Bank

Wrapping up our top 3 in the 24 months best fixed deposit rates, Capitec Bank offer 5.98% nominal interest rate which is one of the most enticing rate in South Africa in this category. The account has an effective interest rate of 6.15% in the process obtaining the 3rd spot.

Best 12 months fixed deposit rates

RatingBankMinimum DepositEffective Interest RateNominal Interest Rate
1African BankR500.006.506.50
2Standard BankR1,000.006.40%6.40%
3Discovery BankR10,000.005.96%5.80%

1. African Bank

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

From a minimum of R500 deposit amount, you can earn an impressive interest rate of 6.5% per annum.

The rate is dependant on the intervals you receive your interest payouts. The monthly interest payout rate is 6.32%, the semiannual rate is 6.40% and the interest payout at maturity is 6.50%.

2. Standard Bank

Standard bank offer a fixed deposit account that pays interest of up to 6.4% interest rate depending on how much you invest. To get started you need to invest a minimum of R1,000.00. Pensioners over the age of 55 get an extra 0.50% for 12 months plus savings.

3. Discovery Bank

Despite the fact that Discovery Bank got its first wave of new customers in early 2019, the bank is taking the banking industry by storm. Their rates are highly competitive not to mention their transactional account.

The company is offering very competitive rates on a 12 month fixed deposit account. The 12 months fixed deposit account offer a 5.8% nominal interest rate. The effective interest rate is 5.96%.

Best 6 months fixed deposit rates

RatingBankMinimum DepositEffective Interest RateNominal Interest Rate
1African BankR500.005.43%5.5%
2Bidvest BankR10,000.005.08%5.03%
3Discovery BankR10,000.004.95%4.90%

There are certain investing situations where you just want to save up some funds for a short period in order to be more liquid. Locking up your money in a short term investment such as a fixed deposit will help you gain real value on your savings.

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

1. African Bank

For a 6 months deposit term, your money can grow at an above-average rate of 5.5%. The interest rate allocated to your 6 months fixed deposit account is influenced by your preferred interest payout intervals.

The monthly interest payout rate is 5.37% while the expiry payout rate is 5.43%.

2. Bidvest Bank

Bidvest Bank also offers good rates for a 6-month deposit term. The average interest rate you can earn in your fixed deposit account is 5%.

There are two interest payout options you can choose from, the monthly payout which has a 5.03% rate and the payout on maturity at 5.08%.

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 4.9% with the effective interest rate at 4.95%.

Best 3 months fixed deposit rates

RatingBankMinimum DepositEffective Interest RateNominal Interest Rate
1African BankR500,005.15%5.25%
2Bidvest BankR10,000.004.48%4.46%
3FNBR10,000.004.30%

1. African Bank

African bank offer the best fixed deposit rate for a 3 months investment. The bank offers 5.25% nominal interest rate. The effective rate is 5.15%.

2. Bidvest Bank

Bidvest Bank offer the second most competitive interest rate for a 3 months fixed deposit with 4.46% nominal interest. The effective interest rate is 4.48%.

3. FNB

A 3 months term fixed deposit account with FNB can earn you a 4.30% interest at the end of the term. The interest rate on short term investments might look small, but the fact is that you would have gained real value for your money.

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.

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