This is an overview of how the Nedbank Fixed deposit works.
What is a fixed deposit?
A fixed deposit is basically a way for you to save money for some time while earning interest on it. You can’t withdraw this money until it reaches maturity, maturity can range between 5 months and 10 years.
You are the one who gets to decide for how long you want your money to be saved up, the length of your deposit usually impacts your interest. The longer you wait, the more interest you earn. Let’s look at African Bank for example, you can earn a total of 10% on fixed deposits if you leave your money for 5 years and not take any interest.
But the same amount will only earn an interest of 5.75% if you only leave it for one year. You can’t make additional contributions into a fixed deposit account, if for example you deposit R10k then you can’t add another R5k every month like you would on a normal savings account.
How does the Nedbank Fixed deposit work?
The Nedbank Fixed deposit works very similar to other fixed deposits offered by other banks. They have a minimum investment amount of R5000 and offer investment periods between 1 month and 60 months
The interest rate you earn will depend on the amount of money you have deposited and for how long you choose to invest. To open this account, you need to first have a Nedbank account and you can open it directly at the branch or from your Nedbank Money app.
You will need an ID or passport and your proof of residence.
Side note
It’s important to compare financial products from different banks before choosing one. When making a fixed deposit; interest is what matters, don’t be afraid to shop around to find a better interest from other banks or companies.
Some banks offer an interest rate of up to 10%, while others may only offer up to 3%. It’s important to compare all your options before committing to one.
Conclusion
This was an overview of how the Nedbank Fixed deposit works. Do you have any thoughts or questions? Comment below.
