Capitec Fixed Deposit

Capitec Bank 1 Year Fixed Term Deposit - Deposits Q: I am over 50years old and want to invest R200 000 for 4 years. How much will I get monthly. Reply. LULAMA from South Africa. Capitec investment. In line with South Africa Revenue Service rules, Capitec has provided a tax-free savings account with the following benefits: You are permitted to open one tax free saving account at any of Capitec branches. You can deposit any amount up to R33 000 per year (single or multiple deposits).

In South Africa, where household savings remain a national priority, there is a dire need to instil a savings culture. While there are various savings vehicles you could investigate, opening a savings account is undoubtedly one of the simplest.

But which savings account offers you the best deal? And should you opt for an open or fixed savings option?

Tip: To save more consider opening a tax-free savings account, here is all you need to know.

Justmoney compared the basic current savings account offerings from the big five banks, i.e. Absa, First National Bank (FNB), Standard bank, Capitec, and Nedbank.

Here is a breakdown:

Open savings accounts

Account name

Minimum deposit

Interest rate

Absa

TruSave

R50

3.70%

FNB

Savings account

R100

5.25% - 6.30%

Capitec

Global One

R25

5.1 % - 9.25 %

Standard

Pure Save

R50

2.85%

Nedbank

Savings deposit

R50

0.76% - 2.05%


Based on the comparison table above, the Capitec Global One account boasts with the best interest earning potential as the highest in their interest rate range is capped at 9.25%. his stands head and shoulders above the rest in the market as FNB’s range cap follows at 6.30% and Absa at 3.70%. Nedbank came in at the other end of the stick as its interest rates proved lowest at 0.76%. Best bet slots.

In addition to Capitec offering the best interest rates, it also has the lowest minimum deposit fee at R25. This again is a stand-out as Standard Bank, Nedbank, and Absa came in with double the fee at R50. FNB on the other hand ranks the most expensive of the lot at a R100 minimum deposit.

From the above we can conclude that Capitec Global One account is the cheapest account with the best interest offering.

Fixed savings accounts

Account name

Minimum deposit

Interest rate

Fixed period

Absa

Fixed deposit

R1000

3.25% - 9 %

8 days – 6 months

FNB

Fixed deposit

R10 000

8.70%

1 – 60 months

Capitec

Fixed deposit

R10 000

9.25%

6 – 60 months

Standard

Fixed deposit

R1000

9%

1 – 18 months

Nedbank

Fixed deposit

R1000

5.5% - 8.16%

1 month – 18 months

Based on the fixed account comparison, Capitec once again offers the best interest-earning potential at 9.25%. This is closely followed by the upper end of the interest ranges of Absa at 9%, Nedbank at 8.16%, and FNB at 8.70%. What’s important to note is that the interest depends on the period you are fixing your money for. Certain accounts such as the Standard Bank fixed deposit account offer between 1 – 18 months whereas others such as Absa and Capitec offer fixed options for up to 60 months.

The minimum deposit amounts range from the cheaper minimum deposit amounts of R1000 at Absa, Standard Bank, and Nedbank. Whereas Capitec and FNB offer fixed deposit accounts at a minimum deposit of R10,000.

What’s key to note is that the Capitec Global One account does have the added benefit of a fixed savings pocket, which does not require a minimum deposit of R10 000, but instead allows you to tailor the amount to your need.

Based on the above, Capitec offers the best interest rates at 9.25% but requires one of the highest minimum deposits. Absa, Standard Bank, and Nedbank in turn offer the lowest minimum deposits, but also have the lowest interest-earning potential.

When considering the minimum deposit fees across the open and fixed savings account options we can conclude that fixed-term savings accounts offer the better interest rates. This, besides Capitec which offers the same interest rate of 9.25% with each account option.

The perks of a good savings account

“It is easier to withdraw money from savings accounts than from stock, bonds, and certificates of deposits, which results in penalties,” says Cowyk Fox, managing executive of Everyday Banking, RBB SA, Absa Group.

Savings accounts will usually accrue interest over time. This means your money has more earning potential than if you would have kept it in a safe at home.

Himal Parbhoo, CEO of FNB Retail Cash Investments offers the following tips:

  • A savings account helps when the unexpected strikes. In case of an emergency, the rule of thumb is to have at least 3 months’ worth of salary saved in a separate savings account, in case of unexpected expenses.
  • Savings accounts also help you save towards specific goals like holidays, car or home deposits, weddings, big birthdays or anniversaries.
  • Fixed-term savings are great for keeping savings safe and growing – it can also supplement income as the interest can be paid out monthly.

What do you need to open a savings account?

If you don’t already have a savings account and are looking to open one, here are few general requirements:

  • Applicants must be 18 years of age and be earning
  • Applicants must be able to produce a South African identification document (ID) or their passport, as well as a copy of their proof of address.
  • You must also be able to produce the minimum opening deposit. This may vary from bank to bank and further between accounts.

It is always advisable to do your research before opening any account at any financial institution in deciding which is the best option for you and your pocket.

save for your future

15/01/2019

With Global One, you get 4 extra savings plans and could earn up to 9.00% interest. Simply choose a savings plan and your deposit option and start investing.

Your main savings account (R25 minimum balance; R5.80 monthly admin fee) gives you affordable banking and access to flexible, fixed or tax-free savings plans.

The benefits of a flexible savings plan

Earn from 3.50% interest per year on daily balances.

  • Choose your deposit amount and the frequency of your deposits
  • Name your savings plan
  • Access your plan any time with Remote Banking (cellphone app/Internet/*120*3279#) or our ATMs
  • No monthly admin fee or minimum balance

You can open a flexible savings plan using our app. Simply open the app, tap on “Save”, enter your Remote PIN and tap “Add Flexible Savings”.

The benefits of a fixed-term savings plan

Single deposit option

Capitec Fixed Deposit Withdrawal

Invest for 6 – 60 months, with a minimum balance of R10 000.

  • You choose how long you want to invest (from 6 – 60 months)
  • You deposit a single amount (maximum R20 million) to invest over the term you choose
  • Earn from 6 – 9.00% (nominal interest rate)
  • Interest rate fixed for the full term
  • Money available on the maturity date
  • After maturity, the account will become a flexible savings plan, which you can refix for a further term
  • No monthly admin fee

When your deposit starts earning interest, you can reinvest the interest or transfer it to your main savings account.

Multiple deposit option

Invest for 6 – 24 months, with a R1 million maximum investment.

  • You choose how long you want to invest for (from 6 – 24 months)
  • You decide how much and how often you would like to deposit over the term you choose, up to a maximum of R1 million
  • Earn from 3.50% – 6.40% interest (nominal interest rate)
  • Interest rate fixed for the full term
  • Money available on the maturity date
  • After maturity, the account will become a flexible savings plan, which you can refix for a further term
  • No monthly fee

When your deposits start earning interest, you can reinvest the interest or transfer it to your main savings account.

Capitec Fixed Deposits

The benefits of a tax-free savings account

Enjoy tax-free interest over the long term.

  • You can open one tax-free savings account at any of our branches
  • Deposit any amount up to R36 000 per year (single or multiple deposits)

South African Revenue Service (SARS) rules

  • Contribution limits :
    • Your combined limit for the financial year (1 March – 28 February) across all tax-free savings accounts, including those at other financial services providers, is R36 000
    • Lifetime limit is R500 000
    • Contributions over these limits are taxed at 40%
  • Interest earned will not be taxed
  • Money withdrawn cannot be replaced
  • Money may be transferred to and from a tax-free account at another financial services provider
  • Other savings plans may not be converted to a tax-free savings account
Capitec fixed deposit calculator

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