South African Notice accounts offer some of the best interest rates for short, medium, and long term investments. A notice account can earn up to 7.30% per year in interest. Deposit accounts are among the most appealing investments due to the interest that can be earned.
To activate a notice account, a minimum opening deposit into the account is required. The minimum opening deposit varies by a bank but can range between R500.00 and millions of rands. To earn the applicable interest, the minimum opening deposit must be kept in the notice account at all times.
A notice account’s interest rate can be tier-based, which means that a deposit of a certain amount can earn a certain interest rate. The more money invested above the minimum opening deposit, the higher the interest rate that can be earned.
The number of deposits that can be made with a notice deposit is also flexible. Deposits into a notice account can be made at various intervals, which can increase the amount of interest earned on the account.
When investing in a notice deposit account, notice days are also important. In South Africa, the following types of notice deposit accounts are available:
A bank may provide one or more of the notice accounts listed above.
Smaller South African banks typically offer higher interest rates on notice accounts and require a lower minimum deposit to activate. Banks such as Bidvest and Sasfin dominate the South African notice deposit account market.
The following is a list of the top ten notice deposit accounts in South Africa.
| Number | Bank name | Highest interest rate |
| 1 | Sasfin Bank | 7.30% |
| 2 | Absa Bank | 7.15% |
| 3 | Investec Bank | 6.95% |
| 4 | Bidvest Bank | 6.94% |
| 5 | FNB | 6.50% |
| 6 | Standard Bank | 6.40% |
| 7 | Nedbank | 6.30% |
| 8 | Discovery Bank | 6.10% |
| 9 | African Bank | 5.85% |
| 10 | TymeBank | 4 – 6% |
The best interest rates offered in South Africa for notice deposit accounts are discussed further below.
Sasfin offers Notice deposit accounts with nominal interest rates ranging from 6.75% to 7.30%. To activate the account, a minimum investment of R20,000.00 is required.
Sasfin provides five notice accounts, ranging from a 32-day notice account to a 120-day notice account. The lowest interest rate on Sasfin Notice accounts is 6.75%, which equates to a 6.96% effective interest rate for the 32-day notice account.
The Sasfin Notice Account offers the highest interest rate of 7.3%, with an effective interest rate of 7.55%.
The Sasfin 120-day Notice Account has the highest interest rate of any notice account offered by Sasfin Bank.
The Absa Notice Select Deposit Account has an annual interest rate that ranges from 4.85% to 7.15%. To activate the account, a minimum deposit of R1,000.00 is required. The Notice Select Deposit Account allows for deposits of up to R9,999,999,999.00.
The Absa Notice Select Deposit Account offers tiered rates that are determined by the amount of money saved in the account. Those who save between R1,000.00 and R24,999.00 earn the lowest interest rate on this account.
The lowest interest rate for a 7-day notice account is 4.85% with an investment of R1,000.00 to R24,999.00. An investor can earn up to 6.6% interest rate on the same investment range but with a notice period of 45 days.
Investors who invest between R10 million and R9,999,999,999.00 earn the highest interest rate on the Absa Notice Select Account. The highest rate is 7.15%, and it is reserved for those who accept a 45-day account notice period.
Absa Notice Select Deposit Account comes with the following features:
Investec offers notice accounts with annual interest rates ranging from 6.21% to 6.95%. Investec notice deposit accounts require a minimum opening deposit of R100,000. The notice deposit accounts available include 15, 32, 45, 60, 90, and 120 days.
The accounts charge interest based on how much percent of the saved amount can be made available on demand. The interest rates applicable to each notice account are shown in the table below:
| Notice Days | ||||||
| % Available on demand | 15 | 32 | 45 | 60 | 90 | 120 |
| 0 | 6.34% | 6.75% | 6.78% | 6.80% | 6.90% | 6.95% |
| 10 | 6.32% | 6.70% | 6.73% | 6.75% | 6.84% | 6.88% |
| 20 | 6.29% | 6.65% | 6.67% | 6.69% | 6.77% | 6.82% |
| 30 | 6.26% | 6.60% | 6.62% | 6.64% | 6.71% | 6.74% |
| 40 | 6.24% | 6.55% | 6.57% | 6.58% | 6.65% | 6.67% |
| 50 | 6.21% | 6.50% | 6.52% | 6.53% | 6.58% | 6.60% |
The Top5 Optimiser and the Private Select Fund are two more flexible notice deposit accounts offered by Investec. The account offers a variable rate linked to the average of the top five qualifying money market funds via the Top5 Optimiser.
Private Banking Account holders can open an Investec Top5 Optimiser with a minimum investment of R100,000.00. Non-private banking account holders can open the Investec Top5 Optimiser, which requires an R250,000.00 minimum opening deposit.
The Invertec Top5 Optimiser is available with 90-day and 45-day notice account options, with interest rates of 6.49% and 6.34%, respectively.
The Investec Private Select Fund offers a 40-day notice account and requires a minimum deposit of R1,000,000.00. The account offers an interest rate of 6.38%; however, deposits of less than R1 million earn 5.13%.
Bidvest Bank Notice Account offers annual interest rates ranging from 6.45% to 6.94%. A minimum deposit of R5,000 is required to open the account. The notice period for the Bidvest Bank Notice Account ranges from 32 to 121 notice days.
Bidvest Bank’s 32-day Notice Account comes with two savings options. The first option is for monthly investments ranging from R5,000.00 to R999,999.00. The interest rate offered on this account is 6.75%, and interest is paid monthly.
The second option for the Bidvest Bank Notice Account is for those who deposit R1 million or more. For those who invest R1 million or more, Bidvest Bank offers 6.85% on their notice account.
Other available options include the 41, 61, 91, and 121 days Notice Accounts. The Bidvest Notice Accounts of 41, 61, 91, and 121 days earn investors interest of 6.45%, 6.48%, 6.74%, and 6.94%, respectively.
The FNB 32-day Flexi Notice has an interest rate of up to 6.45% and requires an R5,000.00 deposit to activate. This account’s funds are accessible after 32 days’ notice.
Those who invest R5 million or more earn the highest interest rate of 6.45%. The account earns daily interest and, if capitalised, has an effective interest rate of 6.64%.
Money can be deposited into the FNB 32-Day Flexi Notice account at any time. The amount of money that can be deposited into the FNB 32-day Flexi Notice account is not limited.
The account’s interest rates are tiered based on the amount saved in the account. To earn interest, the minimum required deposit of R5,000.00 will have to be maintained in the account.
The FNB 32-day Flexi Notice account comes with the following benefits:
The Standard Bank Notice Deposit investment account offers up to 6.40% interest and requires a R250.00 minimum opening deposit. Customers can select a notice period of 7, 14, 21, 32, 45, or 60 days with this account. The account has the highest interest rate for notice periods of 60 days.
The Standard Bank Notice Deposit has no monthly fee. However, there is an R120.00 penalty fee for early withdrawal. A cash deposit fee is applied when funds are deposited into the account.
Account holders have the ability to make unlimited deposits into the account. The account accepts deposits of up to R100 per deposit. There is no set amount that can be deposited into a Standard Bank Notice Deposit investment.
With the Standard Bank Notice Deposit investment account deposits are guaranteed. The interest rate quoted is also guaranteed unless the account holder withdraws from the account prematurely.
The interest on the notice deposit investment account is calculated and paid out on a daily basis. Earned interest is automatically capitalized so that the account can benefit from the compounding effect. The interest paid will be calculated based on the account balance, not the initial deposit.
The Nedbank 32- Day Notice Account pays interest at a nominal rate of up to 6.30%. To activate the account, a R250.00 opening deposit is required. For the 32-Day Notice Account, Nedbank uses a tier-based interest allocation that is determined by the account balance.
The account pays 5.20% interest on balances ranging from R250.00 to R2499.00. The second tier is for those who invest R2500.00 to R24,999.00 and qualify for a 5.70% nominal interest rate.
Investors who invest R25,000.00 to R49,999.00 are classified as third-tier and earn an annual interest rate of 5.85%. Investors in the fourth tier invest between R50,000.00 and R99,999.00 and earn a 6% interest rate.
Tier 5 deposits range from R100,000 to R249,999.00, and these investors earn a 6.20% interest rate. The highest interest earners are those who deposit R250,000.00 or more and receive a 6.30% interest rate.
Benefits and features of the Nedbank 32-Day Notice Account
Discovery Bank’s 90-day notice savings account pays 6.1% interest. The account requires a R1,000.00 minimum opening deposit. Other notice accounts offered by Discovery Bank include a 24-hour notice account, a 32-day notice account, and a 60-day notice account.
There are two types of 24-hour notice accounts. The first is a 24-hour notice account for balances less than R100,000. This account pays 4% interest on deposits of less than R100,000. The second 24-hour notice account charges 4.5% on savings over R100,000.
The Discovery Bank 32-Day Notice Account has an interest rate of 6.45% and requires a minimum deposit of R1,000.00 to open. A 60-day notice deposit offers a lower interest rate than the 32 Day account of 6%.
African Bank offers Notice Accounts that pay up to 5.85% interest. The Bank notice accounts require a minimum savings of R500.00 when activating it. African Bank offers notice accounts ranging from seven days to ninety days.
African Bank’s 7-day notice account has the lowest interest rate of 5.37% and an effective interest rate of 5.50%. The money invested in the 7 days notice account is accessible within 7 days.
A 32-day notice account has the second-lowest interest rate. The interest rate on African Bank’s 32-day notice account is 5.61%, with an effective interest rate of 5.75%.
The 90 days notice account offers the highest interest rate of all notice accounts offered by African Bank. African Bank 90 days notice account offers a 5.85% interest rate with an effective interest rate of 6%.
The interest rate on the TymeBank GoalSave account ranges from 4% to 6%. The interest rate offered is determined by the number of notice days selected by the investor. The higher the interest rate, the longer one has to invest.
A notice period of 1 to 30 days provides a 4% interest rate. There is no minimum opening deposit required for this option. A 5% interest rate is available for those who are willing to save for a notice period of 31 to 90 days.
The highest interest rate available is 6% per year for notice periods of 90 days or more.
Deposit accounts may require a minimum opening deposit to be activated; opening deposits vary by bank. It is critical to understand how much of an opening deposit is required to earn the highest interest rate. Opening deposits range from R500.00 to R25 million, depending on the bank.
Aside from the opening deposit, the percentage of the deposit that can be accessed on demand is an important consideration when opening a notice account. The amount available on demand will most likely determine the amount of interest that can be earned.
The notice days are also the biggest determinant of the interest rate that can be given for a notice account. Higher notice days always have the highest interest rate offered for a notice account.
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