Account holders can use the Capitec platform to open up to 4 savings accounts for various purposes. Investing can be done through a flexible investment account, tax-free savings, or a fixed term account.
To earn the lowest interest rate of 3.50%, a flexible savings account requires an initial investment of R1.00. Investments of R150,000.00 or more in the flexible account earn 6.25% interest, the highest rate available.
Fixed-term savings plans require a single deposit of R10,000.00 or more. Capitec Bank savings plan fixed term investments require 6 month minimum to 60 month maximum investments.
The account pays 7.40% interest on deposits as low as R10,000.00. The highest interest rate available on the Capitec Bank Fixed Deposit Account is 9.70% for investments of more than R1 million.
Fixed interest rates are also available with the Capitec Tax Free Savings Account. The TFSA has a 12-month investment period, with investments starting at R1.00.
The TFSA provides an interest rate of up to 8.05% on investments of R250,000.00 or more. The account’s lowest interest rate is 3.50% for individuals who invest between R0 and R9,999 for a 12-month period.
We’ll walk you through the process of opening a Capitec Bank savings account below.
To open the account you will have to visit a Capitec branch or use the Capitec banking app or internet banking.
To open an account, Capitec requests the documents listed below:
- Original identification document. South African citizen/resident
- Proof of residential address
Access to your funds
Depending on the type of savings account that one opens the access of funds can be available at any time or after a fixed period. Normally a fixed deposit account charges an early withdrawal fee of R300.00.
Interest is calculated on your daily account balances and paid out to you every month end.
The interest rate charged is determined by your account balances. The higher your account balance the higher rate is used.
With the Capitec’s transaction/savings account you can earn interest from 3.50% per year depending on your account balance.
Capitec Savings Account Interest Rates 2023
|Balance amount||Interest rate (%)|
|R0 – R24 999||3.50%|
|R25 000 – R74 999||4.00%|
|R75 000 – R149 999||5.25%|
|R150 000 +||6.25%|
Competitive advantages of the Capitec Savings Account
- There are different savings options to choose from.
- Saving with Capitec Bank is easy as it can be done in many ways including using their transactional account.
- There are no fees associated with the Capitec Savings account.
- Individuals can choose a tax free savings account which doesn’t pay tax.
- Account holders can choose between saving for a fixed period or in a flexible account.
Competitive Disadvantages of the Capitec Savings Account
- Some savings options require a high savings amount to earn high returns.
- Early withdrawal in a fixed deposit account comes with fees. .
Capitec Bank savings account provides a good way to save money for short to long term. Individuals can open multiple savings accounts to meet their savings needs, making the account appealing for multiple savings options. One can open a Capitec Bank savings account to save for a vacation, home renovation and more using one platform.