FNB offers a lot of investment accounts, among these is a fixed deposit account. A Fixed deposit account is one of the most popular investment accounts. This is an overview of how the FNB fixed deposit account works.
What is a fixed deposit?
With a fixed deposit, you give your money to the bank for a fixed period of time and will only get it after that time. It’s almost like lending money to the bank, the bank will pay you interest during the course of your investment.
This interest can either be paid out on a monthly basis, semi-annually, yearly or at the end of your investment periods. Most banks require a minimum deposit to open a fixed deposit account. It’s also unique because you can’t add money to your original deposit. For example, if you only fixed R10k then you can’t add R500 every month to increase it like you would with a savings account and other instruments.
An investment period can be anywhere between 3 months and 60 months with most banks in South Africa.
How does the FNB fixed deposit work?
The minimum opening deposit for the FNB fixed deposit account is R10k, with a minimum investment period of 1 month and a maximum period of 60 months. You can get an interest rate of up to 6.91% or up to 8.50% if you are a retiree and in the retiree value proposition programme. Here is a complete list of all the interest rates offered by the FNB fixed deposit account.
This account comes with no monthly fees and you don’t have to wait till the end of your investment period to access your interest. You can access your interest at anytime during the course of your investment.
Conclusion
This was an overview of how the FNB fixed deposit account works. Do you have any thoughts or questions? Comment below.