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General

How does Capitec Fixed account work?

Capitec offers a fixed term savings account as part of their investment offerings. This is an overview of how the Capitec Fixed deposit account works.

What is a fixed deposit account?

A fixed deposit account is any account that put your money into, leave it for a fixed period of time while earning interest on it. You can’t withdraw your money until the time expires, unlike a savings account where you just have to give a notice of a few days sometimes no notice at all to withdraw your money.

What happens if you really need the money but you have put it in a fixed deposit account? You can be able to withdraw the money but you will have to pay a penalty. This is something that you agree to when opening a fixed deposit account.

Unlike savings accounts, you can’t make additional contributions to your fixed deposit account. You can’t invest R10k then add another R5k next month. Interest rates from fixed deposits tend to be a lot higher than interest rates from savings accounts.

How does the Capitec fixed savings account work?

With the Capitec fixed savings account you can invest for 6 – 60 months, with a minimum balance of R10 000. You get to choose for how long you want to invest between the above period. The interest rate you get is tied to the amount of time you are willing to invest.

You can earn between 6 to 9% in interest per year, this interest is fixed. This means it won’t fluctuate or change no matter how worse or better the economy gets. The maximum amount of money you can invest in a fixed deposit in Capitec is R20million.

Conclusion

This was an overview of how the Capitec Fixed account works. Do you have any thoughts or questions? Comment below.

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