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Bidvest Bank Fixed Deposit Accounts Review 2022

Sasfin Bank also has some of the best interest rates for short- and medium-term fixed deposit accounts. Bidvest Bank isn’t far behind. You can put money into a fixed deposit account that earns some of the best interest rates in South Africa. For a fixed deposit account, the minimum amount of money you can put in is two months. Those who want to invest can do so for as long as a year.

So, Bidvest Bank only has short- and medium-term savings options. On a fixed deposit investment, the interest can reach 5.90% effective interest, which is how much money you make. Call deposits and notice deposits are also available from Bidvest Bank. These types of investments are good for short-term money, but they have a lower nominal annual rate of return than a fixed deposit account.

Furthermore, these accounts don’t require as much money at the start as a fixed deposit account. When you do certain things on your fixed deposit account, you may have to pay for them.

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

To open a fixed deposit account with Bidvest Bank, you must be a South African citizen who wants to invest at least R10000.00. The shortest time to invest in a fixed deposit account from the bank is two months. The longest time to invest is 12 months, which is the longest time you can invest. For the shortest investment period, you can earn a nominal interest rate of 4.39 percent.

For the longest investment period, you can earn a nominal interest rate of 5.75 percent. A fixed deposit account from Bidvest Bank doesn’t charge a monthly administration fee or a fee for using the internet to bank. If you want to use the Bidvest Bank digital platforms and choose Bidvest Bank as your bank of choice, you won’t have to pay for these things at all.

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%

Every month, the interest on fixed deposit accounts from Bidvest Bank is added up. In other words: This means that over time, the compounding factor plays a big role. This means that for example, if you put R10,000.00 in for 12 months, you will get back R10,590.00. This is because the nominal interest rate is 5.75%. People do this because of the effective interest rate at the end of a term for an investment.

Because interest grows each month, the amount of interest that is earned at the end of the investment period will be a little higher if the money is 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 2022

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. 

Bidvest Bank Fixed Deposit Accounts Review 2022

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He 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 financial news, reviews and financial tips. He can be contacted at [email protected]

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