There are numerous ways of investing money nowadays. There is also a range of investment deposit plans, such as notice deposits, call deposits and fixed deposits.
Fixed deposits offer a convenient way to save money and earn a high rate of interest in the process. Instead of leaving extra money in an ordinary savings account, saving it in a fixed deposit can be a better way to earn returns.
A fixed deposit is an amount of money you save that cannot be accessed until maturity and no additional funds may be added to this investment. Anyone wanting to place a fixed deposit should thoroughly examine all their options first.
Interest can be capitalised or withdrawn on demand, however, withdrawal of the deposit before maturity is not allowed. Customer funds are illiquid for a specific period of time with a given fixed interest rate of return. Some lending institutions may require a minimum deposit investment amount.
Once the fixed deposit amount has matured, clients will have earned a significant amount of interest and will have the freedom to use the money however they please. Should you choose, you can add more money to your investment at maturity. You also have the option to reinvest or transfer your interest to another bank account.
Your original deposit and quoted returns are 100% guaranteed.
Various institutions have different options for fixed deposit types. If you are looking to invest in a fixed deposit for one year, it’s important to shop around and compare rates.
Comparing 1 year fixed deposit rates from banks in South Africa
- Nedbank 83%
- Standard Bank 50%
- Investec 30%
- FNB 00%
- Mercantile 00%
- Absa 35%
- Absa Prime Linked 20%
- Capitec 10%
- Postbank 55%
The interest paid on the account can depend on the bank offering the product, which could be paid at maturity or annually, monthly or quarterly. Be sure to understand the rate that your bank is offering you.
Do your research by comparing 1 year fixed deposit rates from banks in South Africa.