Capitec Bank Savings Account Review 2021

Posted on Jan 6, 2021 by Staff Writer

Rateweb | South Africa

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Our research on South African best savings accounts reveals that Capitec Bank Savings account has very competitive interest rates. Most of the existing Capitec clients have expressed satisfaction with the interest they are earning from their savings accounts.

The South African savings market is not giving proper or enough education concerning their products. This is making it difficult to identify the highest-paying savings account that best suits an individual’s specific saving requirements.

With Capitec Bank, the common Capitec savings account is their Globe One account which consists of 4 savings plans; the transactions and savings (main account), flexible savings, fixed-term savings and the tax-free savings.

In this article, we review the transactions and savings account to give you a better understanding on how it works.

Application

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

To have total control of your funds, you will have to get the Capitec Global One card. The card will give you access to Mastercard, Priceless, Cities everywhere worldwide.

Benefits of transacting with Global One:

  • There are no fees charged on online shopping, swiping for fuel or paying accounts worldwide using the global one.
  • You can tap to pay using the global one debit or credit card
  • fixed ATM withdrawal fees, no matter how much you draw

You can access your funds anytime using the Capitec banking app or the cellphone option by dialling *120*3279# and the Internet banking option on their website.

The transactions you make attract fixed banking costs on top of the R5 monthly admin fee you are paying.

Interest earned

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 2.5% per year depending on your account balance.

Below we show you the 2020 Capitec Savings Account interest rates:

Balance amountInterest rate (%)
R0 – R9 999 2.50%
R10 000 – R24 9992.50%
R25 000 – R99 999 2.50%
R100 000 + 2.75%

The Global One account allows you to fix your money in any of the 4 free savings plans and earn up to 8.50% interest.

Cash deposits and withdrawals

The transaction and savings account is your main account and allows you to perform as much transaction as any bank account would allow without any limits. Using the Global One card, the transactional fees are even lesser.

All you need to ensure is that your account always has R25 minimum balance. The bank charges A R5 monthly admin fee to facilitate your account services.

Competitive advantages of the Capitec transaction/savings account

It is Flexible

The Capitec’s savings account allows you to perform all the transactions a current account can offer. There are no limits to the number of transactions you can make. The only difference is that you will be earning interest for keeping your money.

Fixed monthly fees

A R5 monthly admin fee is way too reasonable for an account that has such services like the Capitec’s transaction/ savings account. Fortunately, the fees do not change regardless of the number of transactions you make.

It is convenient

The Global One card gives you convenience over your funds. You can use the card anywhere in the world where they accept master cards.

Competitive Disadvantages of the transactional/savings account

The Capitec Bank savings account’s interest rate is only good on amounts less than R25 000, hence keeping larger amounts in this account will not yield impressing returns.

This limits the bank account to individuals who are just starting to save and saving small amounts, unlike the Absa savings accounts which cater to clients with different levels of income.

Conclusion

The Capitec savings account is exactly what South Africa needs to encourage people to start saving. From as low as R25 your money can start earning interest.

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