Standard Bank offers a lot of investment accounts, among these is a fixed deposit account. This is one of the most popular account and this is an overview of how the Standard Bank 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 it work?
To open the Standard Bank fixed deposit account, you need a minimum of R1k. You will only get access to your money at the end of the investment period. If it happens for some reason that you really need to withdraw the money before maturity then you will have to pay a penalty fee of R450.
There are no monthly admin fees, which might eat up your interest, you can opt to receive your interest every month, quarterly, annually or at the end of your investment period. These are the interest rates for the Standard Bank fixed deposit account.
Conclusion
This was an overview of how the Standard Bank fixed deposit account works. Do you have any thoughts or questions? Comment below.
Lynne Williams
Fixed deposit offers the best interest for 5 years but am concerned if I need the money before maturity, is the penalty on R450.00 ?
admin
Yes, you will need to pay a penalty of R450.