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Bidvest Bank Fixed Deposit Accounts Review 2021

Along with Sasfin Bank, Bidvest Bank has some of the most competitive interest rates for short to medium-term fixed deposit accounts. Businesses and individuals can save money into a fixed deposit account that yields some of the best interest rates in South Africa. 

The minimum investment on a fixed deposit account is 2 months. Investors can invest for as long as 12 months. Therefore, Bidvest Bank only offers short to medium-term savings solutions. Interest on a fixed deposit investment can go as high as 5.90% effective interest.

Other investment options from Bidvest Bank include call deposits and notice deposits. These investment options are for short term investments and have a lower nominal annual rate when compared to a fixed deposit account. Furthermore, investments in these accounts do not require an initial investment as high as a fixed deposit account. 

Your fixed deposit account may incur some charges when certain transactions are performed on the account. Transactions that incur fees include but are not limited to:

  • Internal Branch transfers,
  • Beneficiary payments on internet banking, manual, pay and clear transactions, and mobile app,
  • Manual EFT to your fixed deposit account from another bank,
  • International rand payment to an overseas bank,
  • Statement resend via email or statement request older than 3 months, and more.

Fixed deposit account holders or notice or call account holders need to understand the charges that they might incur on their accounts as they have the potential to reduce their interest earnings drastically.

Bidvest Bank Fixed Deposit Accounts Summary

The Bidvest Bank Fixed Deposit Accounts require a minimum investment of R10,000.00 or more. The shortest period to invest in a fixed deposit account from the bank is 2 months, with the highest investment period being 12 months. 

During the investment period, you can earn a nominal interest rate of 4.39% for the lowest investment period possible and a nominal interest rate of 5.75% for an investment of 12 months which is the highest investment period. 

A fixed deposit account from Bidvest Bank comes with no monthly administration fee or internet banking fee. This means that you won’t pay to use the Bidvest Bank digital platforms and for using Bidvest Bank as your bank of choice. 

Bidvest Bank Fixed Deposit Accounts

TermFixed deposit Nominal Interest RateFixed Deposit Effective Interest Rate
2 Months 4.39%4.40%
3 Months 4.46%4.487
4 Months4.77%4.80%
5 Months 4.89%4.93%
6 Months 5.03%5.08%
7 Months5.11%5.18%
8 Months 5.12%5.20%
9 Months5.16%5.25%
10 Months5.49%5.60%
11 Months 5.74%5.88%
12 Months5.75%5.90%

Interest on fixed deposit accounts from Bidvest Bank is calculated monthly. Therefore, the compounding factor plays a huge role over time. For example, if you invest R10,000.00 for 12 months, you will receive a payout of R10,590.00 from a nominal interest rate of 5.75%.

This is because of the effective interest rate at the end of an investment term. Since interest is compounding on a month to month basis, the interest that is received at the end of the period will be slightly higher if not withdrawn during the investment period. 

From the above example, to reach the R10,590.00 from a R10,000.00 investment, these calculations would have taken place:

1st Month : 5.75%/12 * 10 000 = R47.9

2nd Month: 5.75%/12 * 10 047.9 = R48.1

3rd Month: 5.75%/12 * 10 096 = R48.4

4th Month : 5.75%/12 * 10 144 = R48.6

… 

Month 12: 5.75%/12 * 10 539 = R50.4

The interest that is earned every month grows rapidly as months go by. The first-month interest earned is R47 with the 12th month earning R50. Therefore, with a higher amount invested, the compounding factor will even add more to your investment. 

Benefits of having a Bidvest Bank Fixed Deposit Account

  • Bidvest Bank offers some of the highest interest rates for fixed deposit accounts in South Africa, therefore, by opening a fixed deposit account you get to earn high interest on your investment.
  • The bank focuses mainly on short to medium-term fixed deposit accounts, meaning there is a high level of specialty on accounts available.
  • The fixed deposit account comes with free access to the Bidvest Bank digital platforms.
  • Incoming cash deposits do not incur fees.
  • Bidvest Bank has the highest nominal interest rate for a 2 months Fixed Deposit Account in South Africa.
  • There is no administration fee attached to the accounts.
  • Internal transfers using internet banking are completely free.
  • Clients can invest for a minimum of 2 months which is one of the lowest fixed deposit investment periods in South Africa.
  • Bidvest Bank has the second-highest interest rates for a 3 months Fixed Deposit Account and a 6 months Fixed Deposit Accounts.

Fixed Deposit Account Fees 2021

DescriptionFixed Deposit Account Fees
Monthly administration feeFree
Monthly internet banking feeFree
Cash deposit at a Bidvest branch1.5% of the deposit value
Electronic cash deposit from 3rd party bankFree
Cash withdrawal at a Bidvest branch1.5% of the withdrawal value
Transfer through Bidvest mobile app or internet banking Free
Transfer at a Bidvest BranchR60.00
Beneficiary payment through Bidvest internet bankingR30.00
Beneficiary payment through Bidvest mobile appR30.00
Same day beneficiary payment via Bidvest int bankingR65.00
Manual payment to a beneficiaryR30.00
Same day beneficiary payment via Bidvest mobile appR65.00
Manual EFT to own fixed deposit account from 3rd party bankR120.00
International rand payment to an overseas bank R1,391.00
SMS payment notification feeR0.80
Email payment notification feeR0.70
Unpaid cheque penalty feeR250.00
EFT recall feeR250.00
Transaction tracing query feeR250.00
Statement enquiries Free

Conclusion

Choosing a fixed deposit account is not easy, therefore, you need to make certain considerations before choosing one. However, time will also give your investment favourable results, so investing for a longer period can allow you to earn maximum returns on your investment. 

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Lethabo Ntsoane

Lethabo Ntsoane is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in reviews and financial tips.

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