Does the thought of going through multiple online banks websites to find out the most competitive interest rate paid on a savings account trouble you? Well, finding the best high-yield savings accounts in South Africa doesn’t have to be this hard. We have spared you the hassle by listing the 12 best savings accounts in South Africa that provide the best interest or income from you investments in 2023.
The interest rates are determined somewhat by the current repo which is set by the South African Reserve Bank, otherwise known as SARB or the central bank. The repo rate (or repurchase rate) is the interest rate which the reserve bank lends to other South African banks.
A good savings account has a high and stable interest rate on savings. It also has guaranteed rate payment when money is saved for the agreed investment duration, and no withdrawal restrictions and instant access. For some accounts, there is no minimum balance requirements to start earning interest on a monthly basis. So, which are these accounts and how much should you expect to earn on your savings in 2022?
Best Interest Rates in South Africa 2023
| Bank | Bank Account Name | Minimum Deposit | Interest Rate | Customer Satisfaction Score (2020) | Application |
|---|---|---|---|---|---|
| Absa Bank | TruSave | R50 | 3.2% | 78.6 | Apply Now |
| FNB | Savings Account | R0 | 6.05% | 80.2 | Apply Now |
| Investec | Investec Prime Saver | R100 000 | Prime Linked Interest Rate | Apply Now | |
| Mercantile | Mercantile Call Account | R1 000 | 1.65 – 2.65% | Apply Now | |
| Old Mutual | Old Mutual Invest Flexible Plan | R350 / Month | Variable | Apply Now | |
| PostBank | Postbank Smart Save | R50 | 0.15% – 3.10% | Apply Now | |
| RMB Private Bank | Money Maximiser | R100 000 | 6.70& | Apply Now | |
| Standard Bank | Standard Bank Flexi Advantage Account | R1000 | 7.15% | 77.7 | Apply Now |
| African Bank | MyWorld Savings Pocket | R0 | 6.5% | 83.4 | Apply Now |
| Bidvest Bank | Grow Account | R50 | 5.5% | Apply Now | |
| Capitec Bank | Global One | R25 | 4.5 - 5.25% | 84.7 | Apply Now |
This list contains the bank accounts with the best-fixed deposit rates in South Africa for all categories of earners. We list the minimum opening deposit required for each one and the period of time the funds need to remain in the account (if there is a minimum). Remember you should not just look at the competitive rate but also any customer and client reviews. Read on to find the best bank in South Africa to save your money with, in 2023.
ABSA TruSave
Minimum deposit: R50
Interest rate: 0.45% Flat rate
Absa’s TruSave account is easily accessible. You can open an account with only R50. There are no monthly administration fees charged on this account. Instead, you only pay for transactions.
With this account, you receive two free ATM cash deposits, two mini-statements and two balance inquiries every month. You only get two free ATM cash withdrawals per year.
The interest paid on your investment is calculated daily and disbursed to you every month.
To apply for this account you will need:
- Your South African ID
- Proof of residence
If this option is not appealing enough to you, you can opt for ABSA dynamic fixed deposit account. This account offers a higher interest rate on your investment, between 3.75% and 6.75%. With this rate, you can earn significantly more returns on your investment than in the ABSA TrueSave account. However, you have to pay a minimum opening deposit of R1000 to qualify for the dynamic fixed deposit account.
Other ABSA bank savings accounts available to you:
ABSA Depositor Plus Account
Depositor Plus account is a risk free savings account with no monthly payable fees on your active account. With this account, you have unlimited access to your funds and can withdraw all your bank balance without closing your account. However, you have to deposit an initial amount of not less than R15000 to earn interest on your savings. The interest rate paid on your savings increases with the increase of your deposit amount. These rates are:
Less than R15 000 – 0%
R 15 000 – 2.20%
R 25 000- 2.95%
R 75 000 – 3.05%
R 100 000 – 3.10%
R 250 000 – 3.25%
R 1 000 000 – 3.30%
R 10 000 000 – 3.50%
R 25 000 000 – 3.20%
ABSA Tax Free Account
This is a tax-free savings account that you can open with a minimum of R1000. You can top up your minimum account balance to the allowable tax free limit. With this account, you are guaranteed of returns and capital. In addition to this, you will not be charged monthly account management fees. However, you can only save up to R36000 every tax year or a total of R500000 for a lifetime to enjoy the tax free savings facility.
The interest rate for savings in this account ranges between 0.50% and 4% depending on your savings amount.
African Bank MyWorld Savings Pocket
Minimum deposit: R0.00
Interest rate: 4.25% p/a (Savings Pocket)
Ideally, when you open a MyWORLD account, you become the primary account holder. At this stage, the account comes with two pockets, that is, a power pocket and a savings pocket. However, you can link as many as five pockets to your primary account. Each of these pockets have distinct features allowing you to perform different banking functions.
Essentially, the savings pocket is a distinct account with a unique bank account number where you can save money at competitive South African interest rates. Additionally, you can add up to ten people to this account and access your funds whenever you need to. However, you can’t link a bank card to the savings pocket account. It is an ideal savings account for groups.
African Bank Fixed Deposit Account
Minimum deposit: R500.00
Interest rate: 4.5% to 10.01%
Payout options: 6 months, 12 months or at maturity
With an easy African Bank fixed deposit account opening process, you can start earning money on savings as low as R500. Arguably, this savings account offers the best interest rates in the market in 2022, between 4.5% and 10.00%, depending on your investment period. Ideally, your fixed deposit account savings with the African Bank earns an 8.45% interest for the annual payout option and a 10.00% p.a if you wait for the investment to mature.
Bidvest Bank Grow Account
Minimum deposit: R50.00
Interest Rate: 2.25% on savings above R75000
The Bidvest Grow account offers three accounts in one. These are: Transactional, Savings and the Bidvest Bank Easy Equities account (their share trading platform). It is flexible in its pricing, allowing you to either “Pay as You Transact” (R6.00 per month admin fee + transactions charged on usage) or you can opt for an All-inclusive option which is a flat rate of R175/month.
The interest rates charged on savings pockets differ depending on the savings amount. They include:
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.
Tyme Bank GoalSave
Maximum initial deposit: R10000.00
Interest rate: 4.00% to 6.00%
The Tyme Bank GoalSave account is ideal for an individual who is looking to deposit a large sum of money and hold it for long in their account. This account offers a 4% annual interest rate for money deposited for 1 to 30 days. However, this rate increases upto 6% the longer it stays in your account. Typically, the money will earn a 5% interest per annum if you hold it for 31 to 90 days, and 6% per annum if you hold it for over 91 days. Tyme is a digital bank which saves money by not having any physical branches. Tyme bank is a relatively new financial institution formed in 2015.
Clients are also eligible for a 7% bonus, payable to anyone who notifies the bank 10 days prior to withdrawing their investment after the 91 days.
Unfortunately, individuals can only deposit a maximum initial amount of R10000. However, the bank allows individuals to open up to 10 Tyme Bank GoalSave accounts. In essence, you can invest up to R100000.
Capitec Global One Account Fixed Term Savings Plan (Single Deposit Option)
Minimum deposit: R10000.00
Interest rate: upto 8.15% nominal interest rate
With this account, you can deposit a minimum of R10000 and a maximum of R20 million for 6 to 60 months.
As an account holder, you are allowed to choose your investment period between 6 to 60 months. You then make a single deposit as your investment over your chosen period. Once this is in place, you can earn up to 8.15% nominal interest rate. The bank uses nominal interest rate to determine the daily interest earned by your account balance. This amount accumulates overtime before it is capitalised on a predetermined date every month.
Investing your money with Capitec Bank has a number of benefits including:
- The option to transfer your interest to your savings account or reinvest it
- Fixed interest rate for the investment period
- Your savings and interest available at the maturity of your investment
- No monthly administration fee
- Your account becomes a flexible savings plan after the maturity of your investment
- Mobile banking
Learn more about the Global One Account
FNB Savings Accounts
Minimum deposit: Varies depending on account type
Interest rate: 3% to 7.8%
The FNB bank offers a variety of savings account options. Each of these accounts provide a high interest rate that increases with your deposit amount. Low deposit amounts attract a 3.05% interest rate while highest deposit attracts the maximum interest of 7.8%. Even so, the amount of interest you earn on your savings depends on your account type. They have an easy to use online bank solution and mobile banking app.
Nedbank Savings Accounts
Minimum deposit: Varies depending on the account
Interest rate: 2.75% to 7.51%
Nedbank offers both fixed-term and flexible savings account options. Each of these accounts has a unique interest rate depending on your bank balance and the period you keep the money in your bank account.
Capitec Global One Transaction and Savings Account
Minimum deposit: R0.00
Interest rate: 2.25%
This is your typical everyday account. You can deposit and withdraw cash anytime you want. You do not require a minimum deposit to open this account. However, you can only earn 2.25% interest on this account for bank balance amounts below R100000, and 2.50% on anything above R100000.
Standard Bank PureSave Account
Minimum deposit: R0.00
Interest rate: 2.50%
The standard bank offers a number of savings accounts for different types of clients. These accounts have different competitive interest rates from as low as 1.35% to higher rates as 6.42%. In addition to this, your bank balance and the duration of your investment also influence the interest rate you will earn on your savings.
The PureSave account is one of these options. It has a 2.50% interest on savings. Additionally, there is no monthly management fee charged on this account. Some of the benefits of having this account include:
- Transact and save with one account
- Three free ATM cash deposit a month
- Receive and send instant money via Internet banking
- Buy airtime, data, Lotto, and electricity
RMB Private Bank (Money Maximizer)
Minimum deposit: R100000.00
Interest rate: 3.70%
With the Money Maximizer account, you can make additional deposits anytime you need to. This increases your earnings over time. In addition to this, you can choose to capitalise on your interest or request monthly payouts. In both options, you are guaranteed of getting your money.
You can manage your account online from the comfort of your home or office. While at it, you can access your investment anytime you need to.
These are the best savings accounts in South Africa in 2022. There is a wide range which offer the best interest return on savings, good account maintenance offers, and affordable cost of doing business with the bank. Depending on your financial situation, you should hopefully be able to find an account that has a rate of return to help you reach your savings goals.
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