Tax Free Savings Accounts
With a tax-free savings account you can invest only R30 000 a year. Entire savings in this type of account are capped at R500 000.
A further look at some of the best high interest savings account for 2016 shows that African Bank, Investec and Capitec lead the pack.
The highest amount of interest that you can earn on a savings account is 6.85%, while fixed deposits offer interest of up to 12.90%.
- African Bank6.85%
- Investec 6.75%
- Capitec 5.90%
- Standard Bank4.85%
- Absa Bank3.95%
- Post Bank3.45%
One of the reasons that people often choose high interest savings accounts is that they can earn interest, while also giving people the option of being able to withdraw the funds very easily.
This type of account is also an ideal place to store money that you don’t want to spend on monthly expenses, but that you may wish to use in the near future.
A high interest savings account can also be a great place to keep and grow your emergency fund. You can store some money away that will be enough to cover at least three to six months’ worth of expenses.
African Bank 7 day Notice Account
This account requires R500 and over as an initial investment. The bank requires 7 day notice to access all or part of the funds. The interest rate that can be earned is up to 6.85%.
A 5 year term deposit from the bank has a 12.90% rate.
Investec Premier Savings Account
Offering an interest rate of 6.75%, this is an instant access savings account that allows immediate access to a funds balance. There are no monthly fee charges and a premium prime-linked rate calculated every day and paid monthly.