The best investment rate in South Africa

Are you looking to grow your financial wellness and make your money work for you? Find out how to get the best investment rate in South Africa risk-free!

What is an investment rate and why is it important?

An investment rate is the rate of interest an investor receives on their investment fund. The amount is expressed as a percentage. For example, if you invest R100 000 and your investment rate is 5%, you will receive an increase of R5 000 on the investment within the period of time stated, often either 6 months or a year.

Anyone investing money wants a good return. A better rate means you're likely to receive more investment returns. This leads to the type of wealth building all investors aspire to. The challenge is that most high-return investments come with more risk.

Where can I put my money to earn the most interest?

Many investments promise large returns, such as offshore products and promising start-ups. Faith-based investors may find these types of endeavours enticing, but your ROI is not guaranteed. Instead of only asking where you get the most interest, smart investors also ask where they expose themselves to the least risk.

A tax-free savings account is completely low risk, but your returns are very low, if any. Cheque accounts usually also don't offer any returns. You can invest in the stock market and risk losing big or gaining much over the long haul, but why risk it?

Stocks are most often unpredictable and volatile, which is why one of your smartest options is to find a fixed deposit account with a high rate of return. This means no risk for the investing business and returns at the stated percentage from the financial institution you choose.

What is a fixed deposit account?

A fixed deposit account is a financial instrument that gives investors a higher rate of interest than a regular savings account until the given maturity date. You may need to open a new account, unless your bank agrees to add an investment to the account you already own.

A fixed deposit is a safe and reliable way to reach your financial goals by building wealth that lasts. All you need is a R500 minimum opening deposit to get a Fixed Deposit account at African Bank, where South Africa's highest rate of return resides! You can choose a short-, medium- and long-term investment — either way, you're sure to get great rates from us.

What is a good investment rate?

Investors generally consider a return of 7% per 12-month period to be a good rate of return. The historical average return of the S&P 500 after adjusting for inflation is the barometer that investors often use. While a fixed deposit is often not as lucrative as the S&P 500, it can give you surprisingly good returns.

It is important for investors to be realistic about how much they expect in returns per year. A higher investment rate is always better, and African Bank has the highest one in South Africa!

What is the best investment rate in South Africa?

The best rates of return you could find in South Africa are at African Bank, with a 10.50% rate per annum for a fixed deposit in a 60-month period! That's 1.65% higher than the second-best rate in the country! 

Which bank is paying the highest interest rate on fixed deposit in South Africa?

African bank gives you the highest interest rate in South Africa at 10.50%. The nominal interest rate is calculated at 8.80%, and over a 60-month period, the effective interest is 10.50%. And the best part? Your minimum investment amount is just R500!

Frequently asked questions about fixed deposit accounts

What does "NACM" stand for?

NACM stands for "Nominal Annual Compounded Monthly". It is the interest earned over a month or your monthly capital, if you choose to withdraw your interest monthly. 

What is my account's "NACA"?

NACA stands for the "Nominal Annual Compounded Annually". It is the annual interest rate at which your capital grows, should you choose not to withdraw any of the interest earned.

What is an expiry rate of a fixed deposit?

The expiry rate in fixed deposits is the rate that is applied to your capital to calculate interest earned. It will apply if you do not withdraw any of the interest until the maturity date of your investment and can also be called a simple interest rate.

What happens if I choose to withdraw my money before the expiry date?

As with many investments, the longer you invest, the better and higher the return. Withdrawing early will lead to you losing money. You are allowed to draw your money when you need to pay unexpected expenses, but bear in mind that you will incur an early withdrawal penalty.

Can I make additional deposits into my fixed deposit account?

No, typically you cannot add to your fixed investment. The investment is for a fixed amount at a fixed rate over a fixed time.

Do I need to find a Branch near me to make an investment?

No, you do not need to go to the nearest Branch. We've made it easier for you to invest from the comfort of your own home. Simply visit the African Bank website — it takes only five steps or three minutes! Internet banking has never been easier.

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