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:
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.
The Bidvest Bank Fixed Deposit Accounts are for South African’s who intend to invest at least R10000.00. 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.
|Term||Fixed deposit Nominal Interest Rate||Fixed Deposit Effective Interest Rate|
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.
|Description||Fixed Deposit Account Fees|
|Monthly administration fee||Free|
|Monthly internet banking fee||Free|
|Cash deposit at a Bidvest branch||1.5% of the deposit value|
|Electronic cash deposit from 3rd party bank||Free|
|Cash withdrawal at a Bidvest branch||1.5% of the withdrawal value|
|Transfer through Bidvest mobile app or internet banking||Free|
|Transfer at a Bidvest Branch||R60.00|
|Beneficiary payment through Bidvest internet banking||R30.00|
|Beneficiary payment through Bidvest mobile app||R30.00|
|Same day beneficiary payment via Bidvest int banking||R65.00|
|Manual payment to a beneficiary||R30.00|
|Same day beneficiary payment via Bidvest mobile app||R65.00|
|Manual EFT to own fixed deposit account from 3rd party bank||R120.00|
|International rand payment to an overseas bank||R1,391.00|
|SMS payment notification fee||R0.80|
|Email payment notification fee||R0.70|
|Unpaid cheque penalty fee||R250.00|
|EFT recall fee||R250.00|
|Transaction tracing query fee||R250.00|
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.