Are you looking for the best savings account in South Africa to put your money in? With so many banks in South Africa, each of which offers a variety of savings accounts, it may be difficult to know where to start.
There are many methods to save money. In this post, we’ll look at one of the most basic types of savings products: a bank savings account, which is primarily focused on short-term savings objectives.
Simply stated, a savings account is a place to keep your money: you deposit it, collect interest, and withdraw it when you need it. You may deposit money to your account as often as you like, but there are certain restrictions on how often you can withdraw or move money.
In order to make your life a little simpler, I’ve compiled a list of the best interest rates available on the various savings accounts available in South Africa, which you can find below. I hope this has been of assistance!
1. ABSA TruSave
- Min Deposit: R50
- Interest rate: 3.2%
- Fees: None
You just pay for transactions, and you get two free ATM cash deposits, two mini-statements, and two balance inquiries each month. You are only entitled to two free ATM cash withdrawals each year. Your investment earns daily interest, which is paid to you monthly.
The interest on your investment is computed daily and paid to you monthly.
You will need the following items to apply for this account:
- Your South African identity card.
- Evidence of residency.
If this option does not appeal to you, you may choose the ABSA dynamic fixed deposit account. This account pays a higher interest rate on your investment, ranging from 3.75 percent to 6.75 percent.
This rate allows you to generate considerably higher returns on your investment than the ABSA TrueSave account. To qualify for the dynamic fixed deposit account, you must make a minimum deposit of R1000.
2. African Bank MyWorld Savings Pocket
- Min Deposit: R0
- Interest rate: 6.5%
- Fees: None
The African Bank MyWorld bank account provides customers with a number of unique, useful features, including the Power Pocket feature, which guarantees fast, hassle-free day-to-day banking, and the savings pocket, which includes some of the highest interest rates.
A positive account balance in the MyWorld Account gets 3.50 percent interest per year, while the power pocket earns 3.50 percent and the savings pocket earns 4.50 percent.
A monthly bundle fee of 0 ZAR is charged, with balance enquiries costing 3 ZAR for both POS and ATM inquiries. Withdrawals from ATMs are charged at a rate of 6 ZAR per 1000 ZAR, whereas POS withdrawals are charged at a set rate of 2 ZAR each transaction.
3. African Bank Fixed Deposit Account
R500.00 is the minimum deposit, Interest rates range from 4.5 percent to 10.01 percent. Payout choices include 6 months, 12 months, and maturity.
You may start making money on deposits as little as R500 by establishing an African Bank fixed deposit account. This savings account, according to some, provides the best interest rates on the market in 2021, ranging from 4.5 percent to 10.00 percent, depending on the length of your investment term.
Ideally, your fixed deposit account funds with African Bank earn an 8.45 percent yearly payout choice and a 10.00 percent annual payout option if you wait for the investment to mature.
4. Bidvest Bank Grow Account
R50.00 is the minimum deposit and the Interest rate: 2.25 percent on deposits in excess of R75000.
The Bidvest Grow account combines three different accounts into one. Transactional, Savings, and the Bidvest Bank Easy Equities accounts are among them (their share trading platform).
Its price is flexible, enabling you to choose between “Pay as You Transact” (R6.00 per month admin fee + transactions paid on use) or an All-inclusive option for a fixed cost of R175/month.
The interest rates paid on savings pockets vary according on the amount saved. They are as follows:
- R1-R10000 – 0.25%
- R10001 – R25000 – 0.50%
- R25001 – R50000 – 0.75%
- R50001 – R75000 – 1.75%
- R75001 and above – 2.25%
The transactional account earns 0% interest.
5. ABSA Depositor Plus Account
The Depositor Plus account is a risk-free savings account with no monthly fees for active accounts. You have unrestricted access to your money with this account and may remove your whole bank balance without canceling your account. However, in order to receive interest on your savings, you must first invest at least R15000. The interest rate paid on your savings grows in lockstep with the amount you deposit. These are the rates:
- Less than R15000 – 0%
- R15000 – 2.20%
- R25000- 2.95%
- R75000 – 3.05%
- R100000 – 3.10%
- R250000 – 3.25%
- R1000000 – 3.30%
- R10000000 – 3.50%
- R25000000 – 3.20%
6. Tyme Bank GoalSave
R10000.00 is the maximum initial investment and Interest rates range from 4.00 percent to 6.00 percent.
The Tyme Bank GoalSave account is perfect for someone who wants to deposit a significant amount of money and keep it in their account for a lengthy period of time.
This account pays a 4% annual interest rate on funds placed for 1 to 30 days. This rate, however, rises to up to 6% the longer it remains in your account. If you keep the money for 31 to 90 days, it will typically yield 5% per year, and 6% per year if you hold it for more than 91 days.
Customers are also entitled for a 7% bonus if they notify the bank 10 days before withdrawing their investment after the 91-day period.
Individuals may only deposit a maximum of R10000 in the beginning. Individuals may, however, establish up to ten Tyme Bank GoalSave accounts. In essence, you have the option of investing up to R100,000 in total.
7. Capitec Global One Account
R10000.00 is the minimum deposit and Interest rate: nominal interest rate of up to 8.15 percent
You may deposit a minimum of R10000 and a maximum of R20 million into this account for a period of 6 to 60 months.
As an account holder, you have the option of investing for a term ranging from 6 to 60 months. You then make a single contribution to invest throughout the specified time period.
Once everything is in place, you may earn a nominal interest rate of up to 8.15 percent. The bank calculates the daily interest earned by your account balance using the nominal interest rate. This sum builds over time before being capitalized on a monthly basis at a specified date.
8. Nedbank Savings Accounts
The minimum deposit varies according to the account and Interest rates range from 2.75 percent to 7.51 percent.
Nedbank provides both fixed-term and flexible savings accounts. Each of these accounts has a different interest rate based on your bank balance and the length of time you keep your money in your bank account.
9. Investec Prime Saver
Customers may receive a high rate of return on their investments while still having access to their money via this savings account. For cash deposits put into the account, the account provides one of the best rates in the South African market.
The following are some of the account’s advantages and features:
Benefits from a premium prime-linked interest rate on deposits of 100,000 ZAR or more.
- Funds are available immediately.
- There are no monthly fees.
- Online banking is completely free.
- Access to a specialized Client Support Center, among other benefits.
10. FNB Savings Accounts
- Min Deposit: R0
- Interest rate: 5.8% (on balance of R75k+)
- Fees: None
The FNB Savings Account has no monthly fees and is open to anybody having a Cheque Account. You have the option of reinvesting or transferring your interest to another account. It also enables you to increase your eBucks reward level points if you already have an account with FNB!
Only individual Cheque Account Customers have access to the FNB Savings Account. It is one of the most adaptable savings accounts, with a ‘save my change’ function that enables for repeated contributions into the savings account.
Customers may set up scheduled transfers, which will automatically transfer funds from their check account to their savings account and cash investment accounts.
This enables a systematic approach to saving, particularly when the client has a clear aim and objective in mind. There is also no waiting time to access money; consumers can just go into their internet banking or mobile app and request a transfer from the savings account to the transactional account.
Customers will be able to qualify for a 3.8 percent interest rate if their account balance is more than 75 000 ZAR. As the account balance grows, so does the interest rate, with greater savings yielding more interest.
11. Capitec Global One Transaction and Savings Account
R0.00 is the minimum deposit and 2.25 percent interest rate
This is your average daily account. You may deposit and withdraw money whenever you wish. There is no minimum deposit required to start this account. However, you may only earn 2.25 percent interest on this account if your bank balance is less than R100,000, and 2.50 percent if your bank balance is more than R100,000.
Capitec Global One is an excellent choice for both transactions and savings. It enables you to manage your savings and money via a single account, and it also includes the Capitec Mobile App.
12. Standard Bank PureSave Account
Customers may simply begin saving with this account, and it can be used as a casual savings account while earning attractive interest rates on balances. Customers with the Standard Bank PureSave Savings Account get immediate access to their savings when they need it the most, and they may transfer money to their account via a stop-order.
This savings account has variable interest rates that are additionally graded based on the account balance. This is computed on a daily basis, and the interest is paid on a monthly basis. The PureSave Savings account is simply connected to the Standard Bank ATM card, allowing customers to manage their accounts online, by mobile phone, or at any Standard Bank ATM.
Customers must make an initial deposit of 50Z ZAR to be eligible for the Standard Bank PureSave Savings Account. There is no monthly charge, and although the lowest interest rate on sums ranging from 50 to 10,000 ZAR is 2.15 percent, the maximum interest rate is 2.90 percent.
13. RMB Private Bank (Money Maximizer)
R100,000.00 is the minimum deposit and 3.70 percent interest rate
You may make extra deposits to this account whenever you need to. Over time, this raises your profits. You may also opt to capitalize on your interest or get monthly payments. You are assured to get your money in any case.
From the convenience of your own home or office, you may manage your account online. While you’re at it, you can access your investment whenever you want.
In 2021, these are the best savings accounts in South Africa. They provide the best rate of return on savings, as well as excellent account maintenance offerings and a low cost of conducting business with the bank.
14. Nedbank4me Account
This is a low-income investment-savings account. The minimum deposit is 250 ZAR and there are no fees or charges. The minimal deposit keeps the account operational and generating interest.
Customers may opt to grow their capital weekly or monthly by placing stop-orders from their current account. The minimum stop order is 100 ZAR and deposits may be made from the account, however there are cash deposit costs. The account requires a 32-day notice to withdraw money, so users must apply and notify the bank.
This account’s interest is computed daily and paid monthly to the client. In addition to the prime lending rate, interest rates fluctuate. This enables Nedbank to provide tiered interest rates on savings accounts, guaranteeing that larger account balances get the highest rates.
15. FNB Fluid Youth Account
This savings account is especially created for children to educate them money management at a young age in order to prepare them for a financially secure future. This Savings Account offers many advantages and teaches the pleasure and skill of saving as well as the need of financial stability.
This account enables safe and secure money transfers through a PIN-based MasterCard debit card. The account is accessible to children aged 18 and under and includes the following features:
- There is no minimum deposit required to establish an account.
- There are two different price choices to select from.
- The ability to monitor transactions through SMS or email.
- Account fees may be transferred to a parent or guardian’s FNB account.
- ATMs, internet banking, mobile phone banking, and FNB offices provide access to the account.
- The account pays interest ranging from 0.25 percent to 1.80 percent.
- Monthly account fees are waived for balances of 500 ZAR and above.
16. Nedbank MyPocket
- Min Deposit: R0
- Interest rate: 3-5%
- Fees: None
The Nedbank MyPocket account is a money management savings pocket which can be linked to any Nedbank current account. It offers a goals savings calculator to encourage you to reach your savings goals.
17. Standard Bank Flexi Advantage Account
- Min Deposit: R1000
- Interest rate: 7.15%
- Fees: None
Despite the fact that Standard Bank’s Flexi Advantage account provides competitive interest rates, you are restricted in the amount of money you may withdraw at a time (up to 40 percent of your opening deposit). Interest is computed on a daily basis and is paid out once a month. Transfers to and from your bank account are free, however cash deposits will be subject to a service charge.
I think that postponing pleasure, recognizing the worth of time and money, and exercising self-control all contribute to our ability to save more money. I also believe that we frequently come to understand and embrace this too late in life, which is unfortunate. All of the alternatives listed above have made it simpler for South Africans to begin saving, even if it is just a little amount of money.