What is Compound Interest?
Compound interest is the interest you earn on interest. This can be illustrated by using basic math: if you have R1604.29 and it earns 5% interest each year, you’ll have R1684.50at the end of the first year. At the end of the second year, you’ll have R1768.73.
Which Bank Offers Compound Interest In South Africa?
Best savings account in South Africa
| Savings Account | Minimum Deposit | Interest Rate |
|---|---|---|
| ABSA TruSave | R50.00 | 4% |
| African Bank MyWorld Account | R0.00 | 5.5% |
| Capitec Fixed Term Savings | R10000.00 | 8.50% |
| FNB Savings Account | R10000.00 | 3.8% |
Saving money will help you build up funds to cover both planned and unexpected expenses in the future. Whether you are saving towards a set goal or you are saving for a rainy day, there are three savings needs and requirements to consider;
The interest rate you are offered (is it a fixed or variable rate)
The pattern of deposits to your savings account
Easy access savings accounts
Prior to listing out the best savings accounts in South Africa, we want to fill you with parameters to consider in choosing an account that best suits you.
How do you earn compound interest in South Africa?
To make the most of compound interest, you need to deposit money into your savings every month. For example: saving only R100 per year into an account that realizes compound growth of 10% per year will amount to R1 593.74 after 10 years.
Which SA bank has the best interest rate?
Standard Bank Overall Best Fixed Deposits Rates
| Ranking | Institution | Effective Rate % |
|---|---|---|
| 1 | Standard Bank | 9.43% |
| 2 | FNB | 9.38% |
| Capitec Bank | 9.38% | |
| 4 | African Bank | 9.16% |
Which bank offers the best interest rate for savings South Africa?
Based on the fixed account comparison, FNB offers the best interest-earning potential at 8.50%. This is closely followed by Capitec at 8.46%, Nedbank at 8.16%, and Absa at 7.20%.
What are the best fixed deposit interest rates currently offered in South Africa?
| Bank | Terms | Nominal |
|---|---|---|
| 1 SA Retail Bonds | 60m1k | 10.00% |
| 2 FNB | 60m1mP | 8.85% |
| 3 Access Bank Plc | 60m500 | 8.85% |
| 4 African Bank | 60m500 | 8.80% |