Many people leave their money lying around in current accounts resulting in them earning nothing.
The best deposit account would be one where you earn interest while your money sits and grows as a form of investment. Offering returns and this could be a deposit account that pays interest and is usually not able to be drawn on without notice or loss of interest.
There’s FNB’s Fixed deposit save and invest, which offers a maximum nominal interest rate over 60 months and a minimum opening deposit of R10 000. It’s an investment account with a fixed term, typically giving you a higher interest rate than investments available overnight or with notice.
It’s free as there are no monthly fees. You choose your investment term between seven days and 60 months, or choose your own maturity date. You can access your interest during your investment term. Open and manage your account online.
There’s also Tax-free saving account, which is a must as there’s no tax or withholding tax payable on your capital gain or on your dividends/interest earned. It’s suitable for anyone looking to save long term. Tax-free savings accounts are a new savings product introduced in South Africa in 2015 through government legislation.
There’s Standard Bank’s Tax-Free Call Deposit. This premium investment allows you to save up to R30 000 a year up to a limit of R500 000 over your lifetime and pay NO TAX on the interest you earn. You can open a Tax-Free Call Deposit account with just R250. Interest is earned daily and capitalised monthly, and the higher your balance the higher your interest rate will be.