Fixed Deposit Calculator

What is a fixed deposit in South Africa?

A fixed deposit (FD) is a savings product where you lock a lump sum with a bank for a set period — typically 3 to 60 months — in exchange for a guaranteed fixed interest rate. At the end of the term (maturity), the bank returns your principal plus any accumulated interest. Unlike a savings account, the rate doesn't change during the term and you generally can't access the money early without a penalty. Fixed deposits are offered by all major SA banks and are one of the safest, most predictable savings vehicles available — your capital and return are guaranteed by the bank and protected under CODI's deposit insurance scheme.

Which SA bank offers the best fixed deposit rate in 2026?

African Bank and Capitec consistently offer the highest FD rates of any mainstream SA bank — typically 1.0–1.5% above FNB, Standard Bank, Absa, and Nedbank for equivalent terms. As of April 2026, indicative 12-month rates are: African Bank ~10.0%, Capitec ~9.5%, FNB ~8.75%, Nedbank ~8.75%, Absa ~8.5%, Standard Bank ~8.5%. The 'best' rate depends on your deposit amount (larger amounts earn better rates at the big four), whether you can meet minimum deposits (Capitec requires R10,000; African Bank starts at R500), and whether you want monthly payouts or capitalised growth. Always confirm current rates directly with the bank — rates change monthly.

What is the difference between a fixed deposit and a notice account?

A fixed deposit locks your money for a set term at a fixed rate — no access before maturity without penalty. A notice account (32-day or 90-day notice) lets you access money after giving the required notice period but pays a variable rate, typically 0.5–1.0% lower than a comparable FD. Fixed deposits suit money you won't need for the full term; notice accounts suit money you might need within 3 months. Both are safer than investing in equities for short-term goals.

Is fixed deposit interest taxable in South Africa?

Yes. Interest earned on a fixed deposit is taxable as ordinary income in SA — it's added to your other income and taxed at your marginal rate. SARS provides an annual interest exemption: R23,800 for taxpayers under 65, R34,500 for those 65 and older. This exemption applies across all interest-earning accounts combined — not per product. If your total annual interest (FDs + savings accounts + money market) is below the exemption, you pay no tax on it. Above the exemption, you pay tax at your marginal rate. Your bank provides an IT3(b) certificate after each tax year with the exact interest amount to declare on SARS eFiling.

What happens when a fixed deposit matures?

At maturity, most SA banks automatically reinvest (roll over) your fixed deposit at the current rate for the same term unless you give different instructions. This is the default because it prevents idle money sitting in a low-rate transactional account. Always mark your FD maturity date in your calendar — check what rate the bank is offering for the new term, compare it against competitors (especially Capitec and African Bank), and decide whether to reinvest, switch banks, or withdraw.

Should I choose monthly payouts or capitalise at maturity?

If you don't need the income, capitalising at maturity is mathematically better. The monthly payout is simple interest — you get paid the same amount each month, but it doesn't compound. Capitalising at maturity compounds your interest monthly, so each month's interest earns interest for the rest of the term. On a R100,000 deposit at 9% for 12 months: monthly payout gives you R9,000 (R750/month × 12); capitalised maturity gives you R9,380.69 — about R381 more. The longer the term, the bigger the gap. Choose monthly payouts only if you need the income (e.g. a retiree using FDs to supplement pension income).

Can I break a fixed deposit early in South Africa?

Yes, but with a penalty. Most SA banks charge a penalty equivalent to 3 months' forfeited interest — either paid out of the interest earned, or (if the deposit hasn't yet earned that much interest) deducted from the principal. The penalty wipes out a significant portion of the return on a short-term deposit. If you might need the money, either use a notice account (32-day or 90-day), keep a separate emergency fund, or only commit money you're certain you won't need for the full term.

Are SA fixed deposits covered by deposit insurance?

Yes. All major SA banks are members of the Corporation for Deposit Insurance (CODI), established under the Financial Sector Regulation Act. CODI guarantees qualifying deposits up to R100,000 per depositor per bank. This means if a bank fails, you recover the first R100,000. For deposits above R100,000, only the first R100,000 is protected. This applies to FNB, Standard Bank, Absa, Nedbank, Capitec, and African Bank. If you have more than R100,000 to invest, splitting it across two or more banks keeps each portion within the guarantee.