We reviewed the major banks in South Africa to find out which bank has the highest interest rate for a fixed deposit. This comes after we did a similar study on savings accounts.
African Bank has the highest interest rate for a fixed deposit in South Africa. With a rate of 12.22% accumulative interest if you invest for a period of 60 months. This interest rate falls down to 8% for 24 months and 7% for 12 months. With the interest being paid out on expiry.
Here are some of the best fixed deposits rates in South Africa.
1. African Bank
Product: Fixed deposit investment.
Interest rate: 12.22%.
Minimum deposit: R500.
Additional Information
Interest rates from African Bank range between 5.37% and 12.22%, the amount of interest you receive depends entirely on your investment period and not your deposit.
2. FNB
Product: Fixed deposit.
Interest rate: 7.80%.
Minimum deposit: R10 000.
3. Finbond Mutual Bank
Product: Fixed period paid up shares.
Interest rate: 7.75%.
Minimum deposit: R100 000.
Additional Information
Dividends can be paid monthly, quarterly, half yearly or annually.
4. Capitec Bank
Product: Fixed term savings.
Interest rate: 7.50%.
Minimum deposit: R10 000.
Additional information
The period for investing ranges between 6 and 60 months, the lowest return you can get is 3.50% while the highest is 7.76% (cumulative). The interest rate depends on the amount of money that you invest and not just the period of your investment.
Investments less than R25 000 can earn a maximum of 5.90% interest, investments over R25 000 can earn 7.40% nominal interest.
5. Standard Bank
Product: Flexi advantage investment account.
Interest rate: 6.40%.
Minimum deposit: R1 000.
Additional information
You can draw and replace up to 40% of your deposit at any time without serving any notice.
6. Absa
Product: Absa fixed deposit.
Interest rate: 5.95%.
Minimum deposit: R1 000.
Additional information
Only clients with deposit over R100 000 get the interest rate of 5.95%, clients with less than R100 000 get an interest rate of 5.45%.
7. Nedbank
Product: Fixed deposit.
Interest rate: 5.50%.
Minimum deposit: R5 000.
Additional information
The cumulative interest rate is 6.31% at the end of the fixed deposit period.
Conclusion
Tyme Bank offers a savings account that earns you an interest of 7%, which is still a lot. These are banks with the highest interest on fixed deposits. Do you have any thoughts or questions? Comment below.
