Investing

Best Fixed Deposit Rates South Africa (2025)

Earn up to 11% interest with top SA banks. A complete comparison guide.

If you have a lump sum of money that you don't need for a while, leaving it in a standard cheque account is a mistake. Inflation will eat away at its value.

A Fixed Deposit is one of the safest ways to grow your money. You lend money to the bank for a set period (e.g., 12 months), and they guarantee you a fixed interest rate in return. In 2025, rates are competitive, with smaller digital banks challenging the "Big Four" dominance.

The 2025 Rate Table

Bank12 Months60 Months
African Bank9.3%10.8%
TymeBank11.0%*-
Capitec8.8%9.0%
FNB8.6%9.2%
Standard Bank8.5%9.4%
Nedbank8.6%9.6%
Absa8.5%9.5%

*TymeBank rate often requires "GoalSave" mechanism with 10-day notice or fixing for 12 months. Rates are Nominal Annual Compounded Monthly (NACM) or similar equivalents depending on bank terms.

Winner

Best for High Rates

African Bank

Consistently offers the market-leading rate for 60-month deposits (often hitting 10.5% - 11%).

  • Long history in savings
  • Payout at expiry boosts rate
Best Short Term

Best for Flexibility

TymeBank

Their GoalSave product is unique. You earn up to 11% if you fix your salary and savings for just 12 months.

  • No paperwork (All App)
  • Great 3-12 month rates

Nominal vs. Effective Rate

Banks often advertise two different rates. It is crucial to know the difference so you can compare apples with apples.

Nominal Rate

This is the base interest rate before compounding is taken into account. Usually quoted as "per annum".

Effective Rate

This is the real return you get if you leave the interest in the account to grow (interest on interest). It is always higher than the nominal rate.

Tip: Always ask for the Effective Annual Rate when comparing products where interest is reinvested.

Don't forget the Tax Man

The interest you earn is taxable. However, SARS gives South Africans a generous Annual Interest Exemption.

Under 65 Years Old
R23,800 free

You can earn this much interest per year before paying a cent of tax.

Over 65 Years Old
R34,500 free

Pensioners get a higher exemption threshold.