Fixed Deposit Calculator South Africa - Compare Rates & Returns
Use this free calculator to work out how much interest you will earn on a fixed deposit in South Africa. Compare returns at different terms, see after-tax returns based on your income bracket, and find the best option for your savings. Includes current indicative rates from major SA banks.
Fixed Deposit Calculator
Tax Calculation (Optional)
Fixed Deposit Results
Tax on Interest Income
Comparison: R100 000 at Different Terms
Indicative returns using approximate SA fixed deposit rates (monthly compounding).
| Term | Rate | Interest | Maturity Value |
|---|---|---|---|
| 3 months | 7.5% | R1 887 | R101 887 |
| 6 months | 8% | R4 067 | R104 067 |
| 12 months * | 8.5% | R8 839 | R108 839 |
| 24 months | 9% | R19 641 | R119 641 |
| 36 months | 9.25% | R31 842 | R131 842 |
| 60 months | 9.5% | R60 501 | R160 501 |
* Currently selected term. Rates shown are indicative averages across major SA banks and may differ. Always confirm the exact rate with your bank.
SA Banks Offering Fixed Deposits
Fixed deposits are available from all major South African banks. Rates vary by bank, deposit amount, and term. Shop around for the best rate.
African Bank and Capitec often offer higher rates than the Big Four (ABSA, FNB, Nedbank, Standard Bank). Discovery Bank may offer premium rates for Vitality members. Always check current rates directly with each bank.
What Is a Fixed Deposit?
A fixed deposit (also known as a term deposit) is one of the simplest and safest ways to earn interest on your savings in South Africa. You deposit a lump sum of money with a bank for a predetermined period (the term), and the bank pays you a guaranteed interest rate for the duration. In exchange for the guaranteed rate, your money is locked in and cannot be withdrawn without penalty.
Fixed deposits are popular among South Africans who want a guaranteed return without the risk of market fluctuations. They are particularly suitable for short-to-medium term savings goals, emergency reserves beyond your immediate needs, or as the conservative portion of a diversified investment portfolio.
How Is Fixed Deposit Interest Calculated?
Fixed deposit interest can be calculated in two ways, depending on the bank and product:
- Simple interest (at maturity): Interest is calculated on the original deposit amount only. Formula: Interest = Principal x Rate x Time. For example, R100,000 at 8.5% for 12 months = R8,500 in interest.
- Compound interest (monthly): Interest is calculated monthly and added to the balance, so subsequent months earn interest on the accumulated interest. This results in a slightly higher return. For the same example: R100,000 at 8.5% compounded monthly for 12 months = R8,839 in interest.
The difference between simple and compound interest becomes more significant with larger amounts and longer terms. Always ask your bank whether interest is compounded or paid at maturity, and how often.
Tax on Fixed Deposit Interest
Interest earned on fixed deposits is included in your taxable income in South Africa. However, SARS provides an annual interest income exemption:
| Age Group | Annual Exemption |
|---|---|
| Under 65 | R23,800 |
| 65 and older | R34,500 |
Interest income above these thresholds is taxed at your marginal income tax rate (18% to 45% depending on your total taxable income). The exemption applies to all interest income combined from all sources (savings accounts, fixed deposits, bonds, money market funds), not per account.
Example: If you are under 65 and earn R30,000 in total interest income during the tax year, only R6,200 (R30,000 - R23,800) is taxable. If your marginal tax rate is 26%, you would pay R1,612 in tax on the interest, reducing your effective return. The calculator above applies the tax-year selection to the marginal bracket tables.
Fixed Deposit Rates in South Africa (2026)
Fixed deposit rates in South Africa are influenced by the South African Reserve Bank's repo rate and general market conditions. As of 2026, typical rates range from about 7.5% for short-term deposits (3 months) to 9.5% for longer terms (60 months). Key factors that affect the rate you receive:
- Term length: Longer terms generally offer higher rates because you are locking your money away for longer.
- Deposit amount: Larger deposits often qualify for better rates. Many banks offer tiered rates with breakpoints at R50,000, R100,000, R500,000, and R1,000,000.
- Bank: Smaller or newer banks (African Bank, Capitec, Discovery Bank) sometimes offer higher rates to attract deposits compared to the Big Four (ABSA, FNB, Nedbank, Standard Bank).
- Interest rate cycle: When the SARB raises the repo rate, fixed deposit rates tend to follow. Conversely, rate cuts lead to lower fixed deposit rates.
When to Use a Fixed Deposit
Fixed deposits are best suited for:
- Capital preservation: When you cannot afford to lose the principal amount and need a guaranteed return.
- Short-to-medium term goals: Saving for a specific purchase, holiday, or expense in 6 to 36 months.
- Locking in high rates: When interest rates are high and you expect them to fall, locking in the current rate with a longer-term fixed deposit can be advantageous.
- Diversification: As the low-risk component of a broader investment portfolio.
Fixed deposits are generally not ideal for long-term wealth building (10+ years) because their returns typically only marginally beat inflation. For long-term growth, consider equity-based investments, balanced funds, or a Tax-Free Savings Account invested in equities.
Fixed Deposit vs Other SA Savings Options
| Feature | Fixed Deposit | Money Market | TFSA |
|---|---|---|---|
| Rate | 7.5-9.5% | 7-9% | Varies |
| Guaranteed | Yes | No | No |
| Liquidity | Low | High | High |
| Tax | Taxable | Taxable | Tax-free |
| Minimum | R1K-R50K | R1-R10K | R1-R500 |
Frequently Asked Questions
What is a fixed deposit in South Africa?
A fixed deposit (also called a term deposit or notice deposit) is a savings product where you deposit a lump sum of money with a bank for a fixed period at a guaranteed interest rate. The money is locked in for the agreed term (typically 1 to 60 months), and you cannot withdraw it early without paying a penalty. In return for locking your money away, the bank pays a higher interest rate than a regular savings account. Fixed deposits are considered very low-risk investments because they are backed by the bank and the interest rate is guaranteed for the term.
What are the current fixed deposit rates in South Africa?
As of 2026, approximate fixed deposit rates in South Africa range from about 7.5% for a 3-month term to 9.5% for a 60-month (5-year) term. Rates vary significantly between banks. African Bank and Capitec often offer higher rates than the Big Four banks (ABSA, FNB, Nedbank, Standard Bank). The exact rate depends on the bank, the deposit amount (larger deposits may get better rates), and the term. Always compare rates from multiple banks before committing.
Is interest on a fixed deposit taxable in South Africa?
Yes, interest earned on fixed deposits is taxable in South Africa, but there is an annual exemption. Individuals under 65 can currently earn up to R23,800 in total interest income per tax year tax-free, while those 65 and older can earn up to R34,500. This exemption applies across all interest income combined, and this calculator lets you switch between the supported tax years for the correct marginal brackets.
Can I withdraw my fixed deposit early?
Most banks allow early withdrawal of fixed deposits, but you will typically pay a penalty. The penalty varies by bank and may include forfeiting a portion of the interest earned, or paying a fee calculated as a percentage of the deposit. Some banks may offer a reduced interest rate for early withdrawal instead of a fixed penalty. Before opening a fixed deposit, check the bank's early withdrawal terms and make sure you will not need the money before the term ends.
What is the difference between monthly compounding and at-maturity interest?
With monthly compounding, interest is calculated and added to your deposit balance each month, so you earn interest on interest in subsequent months. This results in a slightly higher total return. With at-maturity (simple) interest, the interest is calculated on the original deposit only and paid out as a lump sum at the end of the term. For example, R100,000 at 8.5% for 12 months: monthly compounding gives R108,839 (interest of R8,839), while at-maturity gives R108,500 (interest of R8,500). The difference is R339 on this example.
Are fixed deposits safe in South Africa?
Fixed deposits at registered South African banks are considered very safe. Qualifying deposits are now covered by South Africa's Corporation for Deposit Insurance (CODI) up to R100,000 per depositor per bank. Amounts above that limit still carry bank-credit risk, so large balances are safer when spread across multiple licensed banks.
How much do I need to open a fixed deposit?
Minimum deposit amounts vary by bank. Some banks like Capitec and African Bank accept fixed deposits from as low as R1,000. The Big Four banks typically require R10,000 to R50,000 as a minimum. Higher deposits often qualify for better interest rates. Some banks offer tiered rates where larger deposits (R100,000+, R500,000+, or R1,000,000+) earn progressively higher rates. Check with your preferred bank for their current minimum and rate tiers.
Should I choose a fixed deposit or a money market fund?
Fixed deposits offer a guaranteed interest rate for a fixed term, while money market funds offer a variable rate with more flexibility. Fixed deposits are better if you want certainty about your return and do not need access to the money. Money market funds are better if you need liquidity (access to your money) or if you expect interest rates to rise. In a rising rate environment, a money market fund will benefit from higher rates sooner, while a fixed deposit locks in the current rate. A common strategy is to use money market funds for emergency savings and fixed deposits for money you can afford to lock away.
Disclaimer: This calculator provides estimates based on the inputs you provide. Interest rates shown are approximate and for illustration only. Actual rates vary by bank, deposit amount, and market conditions. Tax calculations are based on current SARS rules and your stated marginal rate. This tool is for informational purposes only and does not constitute financial advice. Always confirm exact rates and terms with your bank before making a deposit.
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