When you have money to save, you will likely consider saving it at a bank, as this is one of the safest investment options to make. But then you’ll need to consider the different options, to know what the highest fixed deposit interest rates available are.
In 2012 alone, South African citizens had more than R810 million in savings, and this may seem like a lot, but not necessarily. A lot of people choose other options when it comes to savings, like purchasing stock options or investing in property. But for the majority of us, good savings account at a bank that offers you great interest rates is enough.
South Africa has a well-regulated banking industry so savings accounts are quite safe to consider. Many people choose to invest their money for a few years at a time, as opposed to only a few months, which is why they get better interest rates too. There are different types of bank accounts to consider, each with their own benefits.
These accounts allow you to access your money after a specific time period, for e.g. after 24 hours. The process can be as easy as requesting your money via online banking, or via telephone. Interest rates on these accounts are not always very good, often averaging around 2%.
These accounts are in fact an investment that you make for a specific time period and you’ll have to give notice when you want access to your money. For e.g. a 32-day notice period requires you give 32 days’ notice before your money becomes available. These accounts offer better interest rates especially if you choose a longer notice period.
Fixed deposit accounts offer you the best interest rates and you can choose to invest your money for a period between one to five years or more. The more you invest the more interest you’ll earn, and the longer you invest your money for, the more interest you’ll earn too.