A tax-free savings account is a great way to save your money while earning interest and not paying any tax on it. This account is most advantageous for people who anticipate earning more than R23 800 in interest. This is because you don’t pay tax on any interest earned that is less than R23 800.
Most commercial banks in South Africa offer tax-free savings account but they all differ in interest rates. Some yield more interest than others. These are all the tax-free savings account interest rates compared, to help you decide where to invest.
Capitec Bank
These are all the interest rates offered by Capitec on a tax-free savings account.
| Term | | R0 - R9 999 | | R10 000 - R24 999 | | R25 000 - R99 999 | | R100 000+ |
| Nominal | Effective | Nominal | Effective | Nominal | Effective | Nominal | Effective |
| 12 | 2.25% | 2.27% | 3.15% | 3.20% | 3.80% | 3.87% | 3.90% | 3.97% |
| 13-18 | 2.25% | 2.27% | 3.50% | 3.56% | 3.95% | 4.02% | 4.00% | 4.07% |
| 19-24 | 2.25% | 2.27% | 4.00% | 4.07% | 5.00% | 5.12% | 5.30% | 5.43% |
Standard Bank
| Balance bands | Nominal interest rates |
| R 0 - R 249 | 0,00% |
| R 250 - R 14 999 | 2,80% |
| R 15 000 - R 32 999 | 2,95% |
| R 33 000 - R 49 999 | 3,10% |
| R 50 000 - R 99 999 | 3,25% |
| R 100 000 and above | 3.5 |
Absa
| Balance Tiers | Rate |
| R0.01 - R14999,99 | 0.50% |
| R 15 000.00 - R29 999.99 | 2.50% |
| R 30 000.00 - R49 999.99 | 3.00% |
| R50 000.00 - R74 999.99 | 3.05% |
| R 75 000.00 - R99 999.99 | 3.10% |
| R 100 000.00 - R249 999.99 | 3.10% |
| R 250 000.00 R 499 999.99 | 4.00% |
| R 500 000.00 - R 9 999 999 999 999.99 | 4.00% |
FNB
| Amount | Nominal Interest Rate (per annum) | Annual Effective Rate |
| R1 000-R9 999 | 3.25% | 3.30% |
| R10 00 - R14 999 | 3.25% | 3.30% |
| R15 000 - R19 999 | 3.25% | 3.30% |
| R20 000 - R29 999 | 3.50% | 3.56% |
| R30 000 - R49 999 | 3.60% | 3.66% |
| R50 000 - R59 999 | 3.75% | 3.82% |
| R60 000 - R99 999 | 3.75% | 3.82% |
| R100 000 - R499 999 | 3.90% | 3.97% |
| R500 000+ | 3.90% | 3.97% |
African Bank
| Terms | Monthly interest payout | Annual interest payout | Semi-annual interest payout | Interest payout on expiry |
| 1 Days | 5.70% | 5.85% | 5.76% | 5.85% |
Investec
| Tax Free | Nominal* | Effective |
| 12 months | 4.90% | 5.01% |
Nedbank
| Balance | Nominal Rate |
| < R2 500 | 0.0175 |
| R2 500 – R 24 999 | 0.0225 |
| R25 000 – R 49 999 | 0.025 |
| R50 000 – R 99 999 | 0.03 |
| R100 000 – R249 999 | 0.0325 |
| R250 000 – R499 999 | 0.035 |
| R500 000 – R999 999 | 0.04 |
