Big Capitec interest rate changes

Capitec Bank recently implemented significant changes to its interest rate structure, which has caused some customers to be disappointed and confused.

In February 2025, the bank dramatically cut its main transactional account interest rates to a set rate of 2.25% – down from the 3.50% to 7.25% seen a year ago.

While a reduction in interest rates typically ties in with cuts from the South African Reserve Bank, even factoring in the 75 basis point cuts in 2024 and early 2025 shows a sharp reduction.

However, the bank said it made the changes to incentivise clients to transfer available funds from their main transactional accounts into dedicated savings plans—which now carry the same and better rates as the man account before.

“The household savings rate [is] -0.9%, indicating that households are spending more than their disposable income,” the bank told BusinessTech.

“South Africans generally exhibit poor savings behaviour, and our data shows that funds moved to a dedicated savings plan result in stronger savings discipline,” it added.

Capitec said its rate adjustments reflect current market conditions and changes in the repo rate.

The bank insists that the adjustments should not be compared to rates before the Monetary Policy Committee (MPC) meeting on January 30, 2025, as the rates were adjusted based on the new repo rate.

However, the main account rates have clearly been standardized, and all these rates have been reduced by more than the Reserve Bank’s 75 basis point adjustment.

The rate adjustments exceed the repo rate cuts by between 40 and 340 basis points.

Captec main account interest rate changes

The change appears to be tied to a change in the naming structure of its accounts, which, on the face of it, is making a more definitive split between transactional and savings components.

Previously, the GlobalOne Account was known as a combined transactional/savings account, but the group now wants to make a clearer distinction between accounts meant for transactions and those meant to grow savings.

“Capitec has always made sure that our savings’ product names clearly and simply describe what the account is and what it offers clients.

“As we have expanded the range of savings accounts we offer, we’ve had to re-look the names of our products to make sure that they still clearly and simply describe what the accounts offer,” it said.

The bank said the goal with the changes is to reduce confusion between savings products and help customers easily see which accounts are best for their day-to-day spending and which are better for growing their savings.

The name of the “transactional/savings account” is now called the “main account”, while its “flexible savings plan” has changed to the “access anytime saving plan”.

Notably, the access anytime savings plan interest rates have also decreased—however, this is in line with the 75 basis point cuts from the MPC over the past year.

These rates now reflect the same or similar rates the transactional account had previously.

Capitec Access Anytime savings plan changes

Capitec said that clients with balances under R25,000 remain unaffected by the latest rate changes and should continue to benefit from the same interest rates.

While we compare year-on-year changes above, the bank made slight changes during the course of the year.

“Additionally, the improved 7-day notice deposit rates have increased for all balances, offering more savings options,” said the bank.

“Those with over R25,000 in their Access Anytime accounts will now earn higher interest rates, while fixed-term deposit rates remain unchanged since the last repo rate adjustment.”

“The Access Anytime savings account remains the best option for those needing instant access to their money. It offers competitive rates with no monthly fees or minimum balance requirements.”

“Overall, these changes help clients grow their savings while keeping funds accessible,” the group said.

Customer Reactions

The changes have not come without consternation.

Some customers have expressed disapproval of the bank’s significant cuts to the interest rates on their main bank account.

The wider concern is that customers who do not understand the bank’s splitting of transactional and savings accounts may leave their money in the main account, unknowingly losing interest gains.

One customer said they felt “betrayed” by the bank, lamenting the reduced accessibility to funds and lower main account rates compared to previous offerings.

“Transferring money to a savings plan of any kind makes it inaccessible for transactional spending. The main account was the perfect transactional tool – nice interest rates and instant access,” they said.

Capitec said that access has not been limited as clients can easily transfer money from their Access Anytime account to the Main Account for free.

The key issue for customers is that keeping money in the main account no longer yields the same benefits as before. They would now have to put those funds into Capitec’s savings accounts to yield the same rates.

This appears to be Capitec’s intention with the changes.

Other Capitec savings account rates

Note – brackets indicate effective rates, ie the benefit of reinvesting the interest.

Notice Deposit Account Interest Rates

Fixed-Term Savings Plan (Single Deposit Option)

Fixed-Term Savings Plan (Multiple Deposits Option)

Tax-Free Savings Plan

This article has been updated to reflect Capitec’s stated main account rates in 2024