Reviews

Capitec Fixed Deposit Accounts Review 2022

Published by
Lethabo Ntsoane

Capitec Fixed Deposit accounts are among the most popular fixed deposit accounts in South Africa, with attractive interest rates. Capitec Bank offers two types of fixed deposit accounts. Clients have the option of opening a single deposit account or several deposit accounts. The type of option clients select when opening a fixed deposit account with Capitec Bank will decide the maximum/minimum interest they can earn on their fixed deposit investment. Interest on investment is mostly decided by the length of the investment and the amount invested.

How does Capitec Fixed Deposit Account work?

Capitec Fixed Deposit Accounts provides consumers with both multiple and single deposit alternatives. The multiple deposit option offers a nominal interest rate of 2.25 percent to 5.23 percent with a minimum investment of R0.01 and a maximum investment of R1,000,000.00. The multiple deposit option has an investment duration ranging from 6 to 24 months. The single deposit option requires a minimum investment of R10,000.00 and a maximum investment of R20,000,000.00. The nominal interest rate for a single deposit choice ranges from 4.08 percent to 7.71 percent.

Capitec Fixed Deposit Account (Multiple Deposit Option)

TermMinimum Fixed deposit Nominal RateMaximum Fixed deposit Nominal Rate
62.25%3.20%
7-92.25%3.40%
122.25%3.80%
13 – 182.25%3.84%
19 – 242.25%5.38%

The Capitec Bank Fixed Deposit Multiple Deposit Account allows clients to invest for a period of 6 months to 24 months. The investment period is determined by the client, and interest rates ranging between 2.25% – 5.23% depending on the level of investment. Investments start from R0.01 to R1,000,000.00. 

6 Months Multiple Fixed Deposit Account

The 6 months multiple fixed deposit account has 4 deposit brackets that earn clients different interest rates. The first bracket of investments is for investments from R0.01 to R9,999.00. This bracket receives the lowest interest rate of 2.25% mainly because of the level of investment. The effective interest rate is 2.27%.

The second investment bracket is for investments between R10,000.00 – R24,999.00. This investment bracket has a nominal interest rate of 3.08% with the effective interest rate at 3.12%. 

The third bracket is for investments of R25,000 to R99,999.00. The bracket offers the same nominal and effective interest rates as the second investment bracket of 3.08% and 3.12% respectively. 

To earn the highest interest rate on a 6 months multiple fixed deposit account, you need to invest R100,000.00 to R1,000,000.00. This bracket will earn you a 3.20% nominal interest rate and a 3.25% effective interest rate. 

7 – 9 Months Multiple Fixed Deposit Account

The 7 – 9 months multiple fixed deposit account offers clients the opportunity to earn interest on cash invested. The principal investment on the 7 – 9 months investment determines the level of interest that clients earn. 

For a R0.01 – R9,999.00 investment, clients get a nominal interest of 2.25% and/or an effective interest rate of 2.27%. Clients with investments of R10,000.00 to R24,999.00 get a nominal interest rate of 3.28% and an effective interest rate of 3.33%.

On the other hand, clients who invest R25,000.00 to R99,999.00 get interest of 3.28% with the effective interest rate being 3.33%. Furthermore, investments of R100,000.00 or more can yield 3.40% interest per annum or an effective interest rate of 3.45%.

12 Months Multiple Fixed Deposit Account

Like any other multiple fixed deposit account, the 12 months multiple fixed deposit account also requires an initial investment of R0.01 to R1,000,000.00, and the investment amount is decided by the investor. The account has 4 investment brackets to choose from. 

The first bra§cket has a nominal interest rate of 2.25% and an effective rate of 2.27%. This bracket is for an investment of R0.01 to R9,999.00. The second bracket is for investments of R10,000.00 to R24,999.00. Nominal interest from the second bracket is 3.73% and the effective interest is 3.79%.

The third bracket is for investments of R25,000.00 to R99,999.00 and earns a nominal rate of 3.73% and an effective interest rate of 3.79%. The fourth and last bracket is for investments of R100,000.00 to R1,000,000.00, the nominal rate is 3.80% and the effective interest rate is 3.87%.

13 – 18 Months Multiple Fixed Deposit Account

13 – 18 Months Multiple Fixed Deposit Account has some of the highest interest rates for a multiple fixed deposit account. This account is suitable for investors who want to have access to their funds, deposit cash frequently, and aim to invest for the medium term. 

Investors can invest between R0,01 to R1,000,000.00. However, interest in investment will be determined by the level of investment that one invests. Therefore, Capitec Bank has 4 investment brackets for the 13 – 18 Months Multiple investment account. 

The first bracket is for investors who want to invest between R0.01 to R9,999.00, this bracket earns investors a nominal interest of 2.25% and an annual effective interest rate of 2.27%. 

The second investment bracket is for investors who want to invest from R10,000.00 to R24,999.00. This bracket earns a nominal interest rate of 3.77% and an effective interest rate of 3.84%.

The third bracket is for investors who want to invest R25,000.00 to R99,999.00 on the 13 – 18 Months Multiple Fixed Deposit Account. This bracket earns a 3.77% nominal interest rate and a 3.84% effective interest rate. 

The fourth bracket is for investors who want to deposit R100,000.00 to R1,000,000.00 and earn the highest interest rates for the 13 – 18 Months Multiple Fixed Deposit Account. The effective interest rate on the account is 3.91% and the nominal interest rate is 3.84%.

19 – 24 Months Multiple Fixed Deposit Account

The 19 – 24 Months Multiple Fixed Deposit Account has the highest interest rates for all the multiple fixed deposit account offers at Capitec Bank. This is because of the investment duration. 

With 4 brackets, the 19 – 24 Months Multiple Fixed Deposit Account has its lowest interest rate offer at 2.25% for investments of R0.01 to R9,999.00 with the highest interest offer at 5.23% for an investment of R100,000.00 to R1,000,000.00. 

What are the benefits of the Capitec Bank Multiple Fixed  Deposit Account?

  • There are no monthly fees.
  • Clients can reinvest their interest or transfer it to their main Capitec bank savings account.
  • Interest rates are fixed for the whole investment term.
  • Money is available at maturity date.
  • The account turns into a flexible savings account.

Capitec Bank Fixed Deposit Account ( Single Deposit Option)

TermMinimum Fixed deposit Nominal RateMaximum Fixed deposit Nominal Rate
64.08%4.20%
7-94.28%4.40%
124.73%4.80%
13 – 184.77%4.84%
19 – 245.77%5.98%
24 – 366.19%6.21%
37 – 486.41%6.61%
49 – 607.51%7.71%

6 Months Fixed Deposit Account

The 6 months fixed deposit account from Capitec Bank is the entry-level fixed deposit account that offers the lowest fixed deposit rates for a fixed deposit account at Capitec Bank. The minimum investment on a 6 months fixed deposit account is R10,000.00 with the maximum investment being R20,000,000.00.

The nominal interest rate for a 6 fixed deposit account varies on how much a client invests. With 3 investment brackets for the fixed deposit account, clients have a choice to invest between R10,000.00 – R24,999.00, R25,000.00 – R99,999.00, and R100,000.00 offerings offering nominal interest rates of 4.08%, 4.08%, and 4.20% respectively. 

7 – 9 Months Fixed Deposit Account

A more adjustable fixed deposit investment account when it comes to investment period than the 6 months fixed deposit account, the 7 – 9 months Fixed Deposit Account offers investors a chance to invest for 7 to 9 months. The effective interest rate on the account can go as high as 4.49% for investments of more than R100,000.00. 

7 – 9 months fixed deposit account has 3 investment brackets to choose from. The first bracket is for investors who want to invest between R10,000.00 – R24,999.00 and can earn a nominal interest rate of 4.28% and an effective interest rate of 4.36%. 

The second bracket is for those who want to invest between R25,000.00 – R99,999.00 and earn the same rates as the first bracket investors. Those who invest more than R100,000.00 earn the highest nominal interest rate of 4.40% and an effective interest rate of 4.49%.

10 – 12 Months Fixed Deposit Account

For those that want to invest for the medium term, the 10 – 12 Months Fixed Deposit Account may be the best fixed deposit option for them. The account offers a minimum nominal interest rate of 4.73% interest rate and a highest nominal interest rate of 4.80%.

Investments above R100,000.00 earn an effective interest rate of 4.91% or a nominal interest rate of 4.80%. Nominal interest rate offerings of investments of R10,000.00 – R99,999.00 is 4.73% and the effective interest rate of the same investment is 4.83%.

13 – 18 Months Fixed Deposit Account

This fixed deposit account has moderate interest rate offerings with interest rates that are below 5% per annum. The lowest nominal interest rate for the account is 4.77% and the highest nominal interest rate is 4.84%.

The highest effective interest rate for the account is 4.95% which is for investments that are above R100,000.00, on the other hand, the lowest effective interest rate is 4.88% which is for investments of R10,000.00 to R99,999.00. 

19 – 24 Months Fixed Deposit Account

This account has the highest jump from one fixed deposit account to another at Capitec Bank. The account is very attractive as it offers a 5.77% nominal interest rate for investments between R10,000.00 to R99,999.00 which is a 1 point jump when compared to the 13 – 18 Months Fixed Deposit Account. 

The highest interest rates are earned when an investment of R100,000.00 plus is made. Clients can earn a nominal interest rate of 5.98%. Interest at Maturity is 6.15% for this bracket. 

25 – 36 Months Fixed Deposit Account

For investors who want to invest between R10,000.00 – R99,999.00, they can earn 6.19% interest per annum. Their payout interest rate is 6.37%. Investors who want to deposit R100,000.00 or more can earn an annual interest rate of 6.21% and should they keep their money until payout they would earn 6.39% interest per year. 

37 – 48 Months Fixed Deposit Account

Offerings on the 37 to 48 months fixed deposit are high and investors get to earn nominal interest of 6.61% for investments of more than R100,000.00. The effective interest rate for investments of R100,000.00 or more is 6.81%.

Those that deposit between R10,000.00 to R99,999.00 have an opportunity to earn an annual interest rate of 6.41% with payout interest rate calculated at 6.60% for the same investment bracket. 

49 – 60 Months Fixed Deposit Account

This is the highest fixed deposit account offering in terms of interest and investment duration. The account has a maximum nominal interest rate of 7.71% and has a minimum nominal rate of 7.51% for investments of R100,000.00 plus investment and for investments of R10,000.00 – R99,999.00 respectively. 

With interest earned daily, if capitalised investors can earn an annual rate of 7.99% recalculated if you invest R100,000.00 or more for a 60 months period. 

Benefits of the Capitec Bank Fixed Deposit Account

  • Can reinvest the interest or transfer it to your savings account.
  • Money is available at Maturity.
  • Interest rates are fixed for the whole investment term.
  • There are no monthly administration fees.
  • Your account becomes a flexible savings plan at  Maturity.

Conclusion

The Capitec Fixed Deposit Accounts have some of the most competitive interest rates in South Africa. To capitalise from such interest offerings, it is best to lock up your money into a fixed deposit account for the whole investment term so that you can enjoy maximum interest from your savings.

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 lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
Tags: Capitec Bank