African Bank Fixed Deposit
Invest on your terms with a fixed deposit investment. Invest from eight days to five years — and achieve your goals, no matter what they are. Your interest rate is fixed for the entire term of your investment. Interest can be paid on maturity, monthly, quarterly, annually or bi-annually. You can invest any amount with a minimum of R1 000.
- African Bank Fixed Deposit Account (5.5% to 10.01%) African Bank fixed deposit account tops the list! Their interest rates start out at 5.5% interest for the first 3 months and can be increased to as much as 10.1% interest the longer you hold your money, which is outstanding.
- FOREX RATES: USDKES Buying 107.3000 Selling 113.8000 GBPKES Buying 149.2479 Selling 158.7479 EURKES Buying 129.3697 Selling 137.7197 INRKES Buying 1.3840 Selling 1.5840 ZARKES Buying 7.2470 Selling 8.5178 AEDKES Buying 29.3625 Selling 30.6727 YENKES Buying 1.0223 Selling 1.2845 SARKES Buying 28.2487 Selling 30.1535 Please call us on: +254 (20) 2710640/654/659 TO SERVE.
With a rich history in the South African financial services industry, African Bank has gained a reputation as a trusted institution. Since being re-launched in 2007, the bank has continued to grow. It has gained more clients and has provided some much-needed services in the form of credit facilities.
With a value system aligned with enhancing the customer experience, African Bank believes that credit should work to improve lives and help individuals move forward. African Bank ensures that clients are given all necessary information to make informed decisions.
The Bank also offers a range of saving and investment tools. One such tool is the African Bank 5 Year Term Deposit.
More about the African Bank 5 Year Term Deposit
According to an article in Fin24:
“Many people like to keep a certain percentage of their savings in a bank account where it earns some interest; but they can get access to it, in case of emergencies.”
One of the reasons that people often choose high interest savings accounts is that they can earn interest, while also giving them the option of being able to withdraw the funds very easily. This is one of the advantages of having a term deposit.
African Bank offers Term Deposits ranging from 3 months up to a maximum of 60 months. Clients get a fixed interest rate for the duration of their investment.
Interest can be paid out monthly, every 6 months, 12 months, or upon maturity. Additional deposits are allowed for the first 7 days after the initial funding.
The amount of interest you will be earning will depend on the amount of cash you put into this fixed period plan, with the top end being 13+ % (that is a very decent interest rate!)
A R500 minimum deposit is required, along with proof of residence and a valid ID.
Enter your details online and an African Bank consultant will assist you.
If the African Bank 5 Year Term Deposit seems like too much of a long term commitment, check out the African Bank 7 Day Notice Account.
Looking for the best bank to keep your money? With so many banks in South Africa that offer multiple savings accounts each, it can be extremely confusing.
I know because I’m in the process of finding the best savings bank account myself. I was astounded by the lack of information online so I thought I better record my research.
To make life a bit easier for you, below you’ll find a breakdown of the best interest rates on the different savings accounts I came across within South Africa. Hope this helps!
BONUS CONTENT: Looking for an investment in South Africa with the best return? View my 10 best investments in South Africa for beginners here.
01. African Bank Fixed Deposit Account (5.5% to 10.01%)
African Bank fixed deposit account tops the list! Their interest rates start out at 5.5% interest for the first 3 months and can be increased to as much as 10.1% interest the longer you hold your money, which is outstanding.
Here’s a full break down:
What’s really great about this savings account is that it’s fixed rate, which means as long as you keep your money in the account, the interest rate is guaranteed for the investment period selected. The interest won’t fluctuate.
[View Bank]
SIDE NOTE: As discussed in this quora post, only the best investors in the world achieve a 10% return on their investment in the long term. So finding a bank that offers 10% interest on your money is truly special.
02. African Bank MyWorld Savings Account (4.25%)
MyWorld is an everyday savings account that offers some of the best interest rates at 4.25%. This might not sound like much however you don’t even need to have a minimum deposit in your account. As long as you have some money in your account you’ll be entitled to the 4.25% per annum.
To put this into perspective, for a similar ABSA savings account you’ll only get around 1.55% per annum.
[View Bank]
03. Tyme Bank GoalSave (4% to 6%)
The GoalSave account isn’t exactly your typical everyday savings account, however, if you want to deposit your money and hold it in the account it might be a good option.
They offer the best interest rate at 4% interest per annum from 1-30 days after the money has been added to your account. This increases the longer you hold your money to us much as 6% interest.
Here’s a table with more details:
They do offer a bonus of 7% if you give the bank 10 days notice before withdrawing your investment after the 90 day period. As far as I understand you’ll only receive 7% on that 10 day notice period, which is a bit of a disappointment.
Unfortunately, your maximum initial investment is capped at R10,000 however you can own a maximum of 10 of these accounts, which means you can invest a maximum of R100,000 in total.
[View Bank]
04. Capitec Global One account Fixed Term Savings Plan (4.59 % to 7.76%)
The fixed-term savings account offers you the opportunity to earn an interest rate of up to 7.76%. Keep in mind that you’ll need to make a minimum deposit of R10,000 and the minimum period you can keep your money in the account for is 6 months. So it’s not exactly your everyday savings account.
Here’s a table that will explain the effective interest rate you can earn in more details:
NOTE: During your research, you might come across “Nominal” or “Effective” interest rates. Nominal interest rates don’t take into account the compounding effect of the interest you earn.
On the other hand, effective interest rates do consider the compounding effect. This makes the “Effective interest rate” a lot more accurate because it shows the total interest you’ll earn for a given period.
[View Bank]
05. FNB (3% to 7.8%)
FNB has a high initial interest rate of 3.05% on a low deposit, and max out at around 7.8% interest rate for investments of R10,000 plus, which isn’t bad considering what other banks have been offering. The amount of interest you earn obviously depends on the account you choose, so let’s quickly run through the options you have.
[View Bank]
06. Nedbank (2.75% to 7.51%)
Nedbank offers a wide range of flexible and fixed-term savings accounts that ranges their interest rates depending on how much money you have, and how long you keep it in your account.
That said there’s way too much information to fit it all in this article. You can either view it all on the Nedbank’s website here or if you want a snapshot I’ll summarize some of the highest interest yielding savings accounts in the table below.
[View Bank]
07. Capitec Global One Savings Account (2.25%)
This account is more of your every day account that doesn’t require an initial deposit. The biggest drawback is, you can only earn 2.25% interest per annum if you have less than R100,000 in the account.
And if you have more than R100,000 things don’t get much better. Your interest rate crawls up from 2.25% to only 2.5%. I mean why did they even bother?
[View Bank]
08. Standard Bank (1.35% to 6.42%)
Standard bank also has a big variety of savings account options. They offer interest rates from as low as 1.35% to as high as 6.42% depending on the account you choose, how much you deposit, and how quickly you would like access to that money.
They even have 4 “accessibility” options so make sure you check out the bank’s website here to get a detailed description of each. Or, if you prefer a summary I’ll also lay out a summary in the table below.
[View Bank]
09. ABSA Bank (0% to 6.75%)
Absa interest rates for savings account ranges from 0.00% to 0.45% which is extremely poop. I highly suggest you rather look into their dynamic fixed deposit account if you do decide to go with ABSA because it’s a lot higher.
Dynamic fixed deposit accounts offer interest rates between 3.75% to 6.75% which is a lot higher than your everyday savings account.
If you would like to view more options with in-depth details on ABSA’s website, then visit this link. I’ll also include a summary in the table below of options that stood out to me if you would like more of a summary of what ABSA has to offer.
[View Bank]
Fixed Deposit Rates In India
Final Thoughts
Interest rates change all the time so please don’t be surprised if the information I mentioned in this article doesn’t exactly match up to what you’re seeing. That said, this article should give you a general idea of which banks offer the best savings accounts in South Africa.
I hope this information saves you a few hours of research. I know I wish I had it when I was researching my savings account.
YOUR TURN: Did we miss a bank? Or did we miss any info? Please let us know in the comments below so we can start learning from each other.
BONUS CONTENT:
African Bank Fixed Deposit Rates Calculator
- Looking for an investment in South Africa with the best return? View my 10 best investments in South Africa for beginners here.
- Looking for ways to make money online as a beginner? Here’s my free guide that shares 14 free ways to make money online in South Africa with very little experience and without spending a lot of money.