When considering what the best savings account in South Africa is, you should first think about why you want this savings account and what your goal for the savings account is. For example, are you looking to open a savings account because you want to:
- Save towards an emergency fund.
- Use it as a short-term investment savings tool to buy a new pair of sneakers etc.
- Use it as more of a long-term investment savings tool to save for a car, for example.
Your answer to this question can significantly narrow your options when it comes to choosing the best savings account for you. This is a good thing because a savings account is only as good as it serves your correct needs.
Savings accounts vs your savings goals
Saving towards an emergency fund
If you want to save money towards an emergency fund, you should open a savings account that allows you immediate access to your money.
Read: Emergency fund: Why and how you should
Short-term investments
If you want to use your savings account as a short-term investment savings tool because the goal you’re saving towards is not a big capital amount, you could consider a notice deposit or tax-free savings account.
Long-term investments
If you want to use your savings account as a long-term investment savings tool, and you don’t really require access to the funds anytime soon, you can consider a fixed-term savings plan such as a fixed deposit account.
Fixed deposit accounts usually offer a high interest rate and their investment-term can often be up to 60 months.
Criteria you should consider when choosing a savings account
- Minimum opening deposit
- Savings account interest earned
- Monthly admin fees
- When you can access your funds
Which bank has the highest savings interest rate in South Africa?
South Africans often wonder what the bank with the best interest rates is.
Did you know: banks in South Africa are not the only option when it comes to saving? Meerkat is a registered financial services provider, offering a savings solution with a competitive interest rate.
The companies whose savings solutions we are comparing are:
- Standard Bank
- FNB
- Capitec
- Meerkat
- Absa
- Discovery Bank
- African Bank
- Nedbank
For the purposes of this blog post, we will consider savings accounts with a minimum opening deposit of up to R1000.
A breakdown of the savings accounts offering in South Africa:
Standard Bank
PureSave AccountMinimum opening deposit: R0
Monthly admin fees: Zero
When can you access funds: Immediately
Interest earned: R0 - R9 999: 5.8%
Flexi Advantage Savings AccountMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: Immediately
Interest earned: monthly interest earned for first 3 months (4.48%). After 6 months (5.31%), after 9 months (5.71%) and after 12 months (6.06%)
*Fixed interest rate for the investment period
*Can only access 40% of total funds at a time
Fixed deposit investment accountMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: at maturity
Tax-Free Call investment accountMinimum opening deposit: R250
Monthly admin fees: Zero
When can you access funds: anytime
Interest earned: R250 - R14 999 (7.55%)
First National Bank (FNB)
Tax-Free Cash DepositMinimum opening deposit: R300
Monthly admin fees: Zero
When can you access funds: after 32 days
Interest earned: R300 - R9 999: 8.4% (nominal per annum) or 8.73% (annual effective rate)
MyFirstSavingsMinimum opening deposit: R100
Monthly admin fees: Zero
When can you access funds: access 25% of your money after 24 hours notice. Access all your money after 5 days notice.
Interest earned: R100 - R999: 7.8%(interest per annum) & 8.08% (effective rate)
Capitec savings accounts
Capitec offers transactional, flexible and fixed-term savings options.
Flexible & transactional savings accounts:
Minimum opening deposit: R0
Monthly admin fees: Zero
When can you access funds: unclear
Interest earned: R0 - R24 999: 3.5% (nominal interest rate)
Their fixed-term savings account has a minimum deposit of R10 000 required.
Meerkat
Minimum opening deposit: R25
Monthly admin fees: Zero
When can you access funds: Immediately
Interest earned: from R5000 you can earn CPI + 1, so you will beat inflation and maintain the real value of your savings.
*For every R500 you save each month, you will also be placed into a monthly draw and could win a grand prize of R1000- that’s 100% return on your investment.
Absa savings accounts
For Absa’s savings accounts we’ve only looked at their low-risk investment products.
FuturePlanMinimum opening deposit: R100
*Need to contribute a minimum monthly contribution of R250.
Monthly admin fees: Zero
When can you access funds: 32-day notice
Interest earned: >R1000: 6%.
Tax-free savings accountMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: Immediate access
Interest earned: R1000 - R14 999 (8%)
Dynamic fixed depositMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: you can choose if you will have access to 0-50% of your funds during your investment period.
Interest earned: interest earned is tiered and depends on time invested, when you want access to interest, and the percentage of access you want to your funds. View a breakdown here. Interest ranges from 5.9% to 12.48%.
Notice selectMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: you can choose your notice period for either 7, 15, 32 and 45 days’ notice.
Interest earned: interest earned is tiered. For an amount invested of R1000 - R24 999, you can earn between 6.85% - 8.35%. View the full breakdown of their rates here.
TruSaveMinimum opening deposit: R50
Monthly admin fees: Zero
When can you access funds: Immediately
Interest earned: 5.2%
Discovery Bank
Demand Savings AccountMinimum opening deposit: no minimum amount required
Monthly admin fees: Zero
When can you access funds: Immediately
Interest earned: 5.1% base interest rate, can earn up to 6.6%.
Notice savings accountMinimum opening deposit: no minimum amount required
Monthly admin fees: Zero
When can you access funds: 24 hours minimum
Interest earned:- 5.1% for anything below R100 000 for a 24 hour notice period
- 7.95% for 32-day notice
- 7% 60-day notice
Minimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: unclear
Interest earned: 7.1%
African Bank savings accounts
Fixed deposit accountMinimum opening deposit: R500
Monthly admin fees: unclear
When can you access funds: unclear
Interest earned: interest earned is calculated on a tiered system based on when you want your interest paid out. Interest ranges from 7.73% - 12.21%.
Access AccumulatorMinimum opening deposit: R500
Monthly admin fees: unclear
When can you access funds: immediately or partially
Interest earned: interest earned is calculated on a tiered system based on when you want your interest paid out. Interest ranges from 5.96% - 8.27%.
Notice Deposit AccountMinimum opening deposit: R500
Monthly admin fees: unclear
When can you access funds: you choose between 7,32 and 90 days.
Interest earned: interest earned is calculated on a tiered system based on when you want your interest paid out. Interest ranges from 7.12% - 8.95%.
Nedbank savings accounts
32-day notice accountMinimum opening deposit: R250
Monthly admin fees: Zero
When can you access funds: after 32 days
Interest earned: interest earned on <R2500 is 6.95%
Electronic fixed deposit investment accountMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: after term/ at maturity
Interest earned: interest earned is calculated on a tiered system.Interest can range from 5.8% to 12.25% for an amount between R1000 - R24 999. View the breakdown here.
Electronic OptimumPlus investment accountMinimum opening deposit: R1000
Monthly admin fees: zero
When can you access funds: after term/ at maturity
Interest earned: interest earned is calculated on a tiered system.Interest can range from 6.65% to 13.16% for an amount between R1000 - R24 999. View the breakdown here.
JustInvestMinimum opening deposit: R500
Monthly admin fees: Zero
When can you access funds: 24 hours
Interest earned: interest earned for <R2500 ranges between 6.05% to 7.05%.
PlatinumInvestMinimum opening deposit: R500
Monthly admin fees: Zero
When can you access funds: 24 hours
Interest earned: interest earned for <R2500 ranges between 6.05% to 7.05%.
Tax-free fixed deposit investment accountMinimum opening deposit: R1000
Monthly admin fees: Zero
When can you access funds: end of term/ at maturity
Interest earned: interest earned for R1000 - R24 999 is between 7.6% - 7.87.
Tax-free savings accountMinimum opening deposit: R500
Monthly admin fees: Zero
When can you access funds: 24 hours
Interest earned: interest earned for <R2500 is 6.05%.