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Discovery Bank Fixed Deposit Accounts Review 2022

Discovery Bank is steadily rising through the South African banking rankings. Because of the bank’s ability to offer competitive products and some of the lowest interest rates in the country. It’s simple to open a fixed deposit account with Discovery Bank. The account may be opened online in a matter of minutes, and you can make your first deposit as soon as it’s active. Fixed deposit accounts come in a variety of shapes and sizes. A tax-free savings account, a notice savings account, or a demand savings account are all options for customers.

The amount of interest that clients earn is determined by the quantity of money they invest and the length of time they are willing to invest for. Normally, the maximum interest rate is earned on investments of R100,000.00 or more with a minimum investment period of 60 months.

Discovery Bank Fixed Deposit Accounts Rates 

Fixed  Deposit TermNominal Interest RateEffective Interest Rate
3 Months4.2%4.21%
6 Months4.9%4.95%
12 Months5.8%5.96%
18 Months5.9%6.15%
24 Months6.6%7.09%
36 Months6.9%7.64%
60 Months7%8.35%
Discovery Bank fixed deposit rates 2022

Discovery Bank offers fixed deposit accounts for investment periods of not less than 3 months and of not more than 60 months. Investment on a fixed deposit starts from R10,000.00 with the maximum investment amount being unclear. Interest rates on the fixed deposit accounts start from 4.2% to 7% nominal annual compounded monthly. The level of interest that clients get is determined by the period and the amount of investment. 

Accounts to choose from

A tax-free account, a notice account, or a demand account are the three types of accounts available to investors. Clients can save money in a Tax-Free Savings account without having to pay taxes on the interest they earn. A tax-free savings account, on the other hand, has several restrictions:

  • Annual limit of R36,000.00. 
  • Lifetime deposit limit of R500,000.00. 

Anyone is eligible to open a tax-free savings account. Note that your total tax-free savings, including tax-free savings accounts held with other financial services providers, must not exceed R36,000.00 each year. A penalty fee will be imposed if you exceed any of the SARS-imposed thresholds. A notice account is one in which you must give advance notice before withdrawing funds from a fixed deposit account. The number of notice days on a fixed deposit account varies, and the higher the number of notice days, the higher the interest earned.

A demand deposit account, on the other hand, is one from which funds can be withdrawn at any moment. Because money can be retrieved on any day without giving warning, the account functions more like a cheque account.

Discovery Bank 3 Months Fixed Deposit Account

The Discovery Bank 3 Months Fixed Deposit Account offers the country’s second-best interest rate. The account has a nominal interest rate of 4.2 percent. The fixed deposit account requires a minimum deposit of R10,000.00.

Discovery Bank 6 Months Fixed Deposit Account 

The Discovery Bank 6 Months Fixed Deposit Account pays a nominal interest rate of 4.7%. The 4.7% nominal interest rate is the third highest in its category, after Bidvest Bank and African Bank, which come in second and first, respectively. The interest on the 6-month fixed deposit account compounded monthly produces a 4.90% effective interest rate at maturity. If you capitalize your interest earnings, that is.

Discovery Bank 12 Months Fixed Deposit Account 

A minimum deposit of R10,000.00 is required to open this fixed deposit account. The account boasts a 5.6 % nominal interest rate and a 5.75 % effective interest rate. Interest on your fixed deposit account will be quoted dependent on your level of investment and other factors.

Discovery Bank 18 Months Fixed Deposit Account 

The interest rates on the 18-month Discovery Bank Fixed Deposit account are slightly higher than those on the 12-month Fixed Deposit account. A nominal interest rate of 5.7% is calculated monthly on this account. The investment’s effective interest rate is 5.94 %.

Discovery Bank 24 Months Fixed Deposit Account 

This account is ideal for investors looking to make a medium-term investment. The account offers one of the highest interest rates in the category in South Africa, with a nominal interest rate of 6.5%, a significant increase over the 18 Months Fixed Deposit Account. To start this account, you must deposit a minimum of R10,000.00. Your investment can generate 6.92 % recalculated at Maturity if you opt to capitalise your interest earnings.

Discovery Bank 36 Months Fixed Deposit Account 

One of Discovery Bank’s most popular accounts, the account offered an interest rate of more than 9.00% at one point in 2020. The account has a nominal interest rate of 6.9% and an effective interest rate of 7.64% as of 2021.

Discovery Bank 60 Months Fixed Deposit Account 

Discovery Bank’s fixed deposit account with the highest interest rate is this one. This is due to the investment’s 5-year term, which is the longest of any Discovery Bank fixed deposit account. The nominal interest rate on the 60-month fixed deposit account is 7%, computed monthly, and gives an effective interest rate of 8.35% at maturity if interest is capitalized.

Conclusion 

When it comes to fixed deposit account services, Discovery Bank does not disappoint, as the bank offers some of the most competitive interest rates in the country. Despite the availability of other fixed deposit accounts on the market, Discovery Bank makes it as simple as possible for customers to open and maintain accounts online. You’ll be able to manage your account remotely at any moment, which will give you piece of mind.

Discovery 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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