What R10,000 gets you in South Africa’s major savings accounts

 ·21 May 2023

With the cost of living crisis and the economic effects of load shedding having a profound effect on the finances of South Africa, saving is incredibly difficult for many.

With interest rates on the horizon, consumers could possibly see further stains put onto their finances, making saving incredibly difficult.

As reported by GQ, South Africa has an incredibly poor saving rate – one of the worst in the world.

Rising expenses, such as fuel and food, are also making it harder for South Africans to save.

A BusinessTech poll from this year asked our readers how much of their salary they put into savings each month.

2,326 of 5,233 (44.45%) respondents said that they did not have any of their monthly earnings put into savings. Another 26.12% of respondents said that they saved 1% to 10% of their monthly salary.

Thus, many South Africans are putting away very little to none of their income into savings.

Barbara O’Neill from Rutgers said that putting money away gives consumers a piece of mind when it comes to life’s uncertainties.

However, in a separate BusinessTech poll with nearly 6,000 responses, 44.10% of respondents said that they could not survive an R10,000 emergency.

O’Niell added that once an emergency fund is accounted for, savings can start to provide seed money for other higher-yielding investments, such as bonds or stocks.

South Africa is currently experiencing high inflation, with the annual Consumer Price Index (CPI) showing that inflation was at 7.1% for March 2023 – a 0.1% increase despite many experts predicting a decline.

During periods of inflation, many assume that things will be more expensive than they were previously due to a decrease in purchasing power for the rand. Luckily, banks generally tend to raise interest rates during periods of inflation.

The bank may not pay out the interest quickly, but clients can expect their Annual Percentage Yield to increase with inflation.

South African banks have responded to inflation by offering high-interest rates for their respective savings programs.

BusinessTech looked at how much a consumer could get back from a saving account when putting away R10,000.


Fixed Deposit Account

Fixed deposit accounts usually offer the highest monthly interest rates, with periods that range from 7 days to 60 months or more.

Banks differ in their payout options, but it is common for interest payouts to be provided either monthly, six months, 12 months, or at maturity.

Clients who withdraw from their fixed deposit before the prescribed period has concluded will likely receive a proportional penalty fee.

Here’s how much R10,000 would get in the following fixed-deposit accounts:

(Note: All future values are calculated through the Investec future value calculator with interest being paid out monthly, NACM – nominal annual compounded monthly. Investec itself does not offer a minimum deposit of R10,000)

Bank Minimum deposit 6-month interest rate (R10,000) 6 -month future value 12-month interest rate (R10,000) 12-month future value
TymeBank R0 9.00%* R 10 451.00 10%* R 11 000.00
African Bank R500 8.56% R 10 435.71 9.30% R 10 970.68
Standard Bank R1 000 8.25% R 10 380.91 8.59% R 10 893.64
Discovery R10,000 7.95% R 10 404.14 8.55% R 10 889.31
Absa R1 000 7.95% R 10 404.14 8.40% R 10 873.11
First National Bank R10 000 7.50% R 10 380.91 8.25% R 10 856.92
Capitec R10 000 7.50% R 10 380.91 8.25% R 10 856.92
Rand Merchant Bank R10 000 7.50% R 10 380.91 8.25%
R 10 856.92
Nedbank R5 000 7.65% R 10 388.65 8.10% R 10 840.76

* TymeBank has recently offered fixed deposit accounts. Interest is accrued and compounded daily instead of monthly.


Notice accounts

Despite notice accounts offering lower interest rates than traditional fixed deposit accounts, they allow for access to funds quickly if proper notice is given to the bank.

(Note: All interest rates were also based on a balance of R10,000)

Bank Account name Minimum deposit 32-day notice, nominal interest rate 12-month future value
African Bank Notice Deposits Account R500 8.65% R 10 900.13
Discovery Notice Savings Account R0 7.95% R 10 824.62
First National Bank 32-Day Flexi Notice R5 000 6.75% R 10 696.28
Rand Merchant Bank 32-Day Flexi Notice R 5000 6.75% R 10 696.28
Nedbank 32-Day Notice Investment Account R250 7.20% R 10 744.24
Absa Notice Select R1 000 6.75% R 10 696.28
Standard Bank Notice Deposit Account R250 5.60% R 10 574.60

Immediately accessible savings accounts

These accounts offer immediate access to funds but have lower interest rates.

(Note: All interest rates were again based on a balance of R10,000)

Bank Account name Minimum deposit Nominal interest rate 12-month future value
First National Bank Savings Account R0 6.55% R 10 675.03
TymeBank GoalSave R0 6.00%* R 10 616.78
African Bank Access Accumulator R500 5.96%** R 10 609.39
Standard Bank PureSave Account R0 5.30 % R 10 543.07
Discovery Demand Savings Account R0 5.10% R 10 522.09
Nedbank  MyPocket R1 5.00%
R 10 511.62
Absa TrueSave R50 4.70% R 10 480.26
Capitec Transaction and savings R30 3.50% R 10 355.67

* Could rise to 10% if the right conditions are met

** Applicable only for 24 months


Read: The most valuable banks in South Africa in 2023

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