Which savings accounts offer the best interest rates?

Having some money saved for a rainy day can turn out to be a lifeline – it can get you out of a tight financial spot, prevent you from having to take out a loan, and give you peace of mind.

Saving can also be exciting, especially if you’re saving for an overseas holiday, a new car, home renovations, or a wedding.

“Savings accounts are best used as a ‘parking bay’ for short-term funds, typically those needed within the next 12 months,” explains Anton Schutte, holistic financial coach at Anton Schutte Consulting.

Different types of savings accounts 

If you’ve been meaning to open a savings account but feel overwhelmed by the number of options out there, you’re in the right place!

In this article, we take an in-depth look at the different types of savings accounts available in South Africa, which to choose based on your financial goals, and which offer the best interest rates. We compare savings accounts in South Africa as at the end of June 2025, considering open, notice, fixed, digital, and tax-free options.

Read on to learn more about which of these options might be best for you. The information provided is a guideline – it’s always advisable to speak to your bank directly to find out what interest rate you qualify for.

Interest earned on savings accounts 

Interest earned on savings depends on various factors, such as changing market conditions, bank incentives and strategy, your account balance, the terms and conditions of the account, and more.

Because savings accounts are not credit products, their interest rate isn’t affected by your credit score.

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Comparing the top open accounts in South Africa

Open savings accounts – also known as instant access or call savings accounts – are flexible, low-risk accounts where you can earn interest on your savings, generally deposit or withdraw money at any time, and don’t need to give notice before withdrawing funds.

There’s usually no fixed term or penalty for accessing your money.

Interest rates are usually lower than notice accounts or fixed deposits, but still higher than current accounts.

Note that rates can vary based on how much you save and how long you keep funds in your account. Some open accounts include optional “boosts” or tiered interest to ensure you don’t touch your funds.

Which open savings account is best?

If you need immediate access to your funds, Nedbank and TymeBank present the most compelling options.

• Nedbank’s JustSave offers the highest potential rate in the open savings category, with a tiered interest rate varying between 6.25% and 7.5%. The more you save, the more you earn – ideal for those with higher balances who still need ready access to cash.
• TymeBank’s GoalSave provides a solid base interest rate of 6% a year, regardless of the amount saved. It stands out for its potential to boost this rate to 10% – but you have to make specific transactions. This account also has no fees, and allows withdrawals at any time.
• FNB’s Linked Savings is competitive for smaller savings funds, providing 5.9% per year on balances up to R19,999 with no monthly fees.

Comparing the top notice accounts in South Africa

Notice savings accounts require you to give advance notice before withdrawing money – usually between seven and 90 days.

They work well if you want better interest rates than open accounts, but still need access within weeks to months.

Interest Is higher than open accounts, but withdrawals without notice incur penalties or reduced interest. These accounts are semi-flexible – you can add funds, but you have to wait to withdraw them.

Which notice account is best?

If you’re able to give notice before withdrawing funds, you may be able to access higher interest rates, with Nedbank and African Bank leading this category.

• Nedbank’s JustInvest and Platinum Invest accounts offer the highest interest rates, ranging from 6.3% up to 8.3%. A key advantage is that funds are accessible within a minimum of 24 hours, combining a high yield with relatively quick access.
• African Bank's Notice Deposit is a strong competitor, offering rates between 7.25% (for seven-day notice period) and 8% (for 90-day notice period) with a minimum deposit of R500.
• Nedbank’s Electronic 32-day Notice Investment also offers a competitive rate of up to 8.05%.
• Discovery’s Notice Savings Account provides rates up to 7.55% for a 90-day notice period with no minimum deposit required.

Comparing the top fixed-term savings accounts in South Africa

A fixed-term deposit account is a lump sum investment locked in for fixed period, usually six to 60 months. You can’t access the funds before they mature without inviting penalties.

They are ideal for long-term savers who want maximum interest within a savings vehicle, and can afford to lock away funds.

The opening deposit can vary widely, from R1,000 to R10,000, depending on the bank, and interest is the highest of all savings account types.

Some banks allow you to choose whether interest is paid monthly or right at the end of the fixed period.

Which fixed-term savings account is best?

If you’re able to lock away your funds without accessing them for a fixed period, African Bank and Nedbank offer the highest returns, rewarding long-term commitment.

• African Bank’s Fixed Deposit provides the highest straightforward interest rate listed in the table, offering up to 10.4% per year for a 60-month term. This makes it a top choice for maximising long-term growth with a minimum deposit of only R500.
• Nedbank’s Electronic Optimum Plus Investment is the best option for savers over 55, offering a rate at maturity of up to 11.31%.
• TymeBank’s Fixed Opening Deposit is highly accessible, offering a fixed rate of 9% for a 12-month term with no minimum deposit and no fees.

Comparing the top tax-free savings accounts (TFSAs) in South Africa

A TFSA allows you to save or invest without paying tax on interest, dividends, or capital gains.

It’s useful for long-term savings goals, such as education, retirement, or a first home. Tax-free growth makes it efficient over time.

TFSAs are flexible – you can withdraw any time. However, withdrawn funds count towards your R500,000 lifetime limit. In addition, you’re limited to depositing R36,000 a year in total (not per account).

You can open multiple TFSAs but note the annual and lifetime limits.

You are not taxed on growth withdrawals.

Which is the best TFSA?

African Bank offers the most attractive interest rate for tax-efficient growth, while other banks provide competitive options with varying access conditions.

• African Bank’s tax-free investment leads the market with the highest interest rate of 8.25%. It requires a low minimum balance of R50, with funds accessible after 12 months.
• Nedbank’s Tax-Free Fixed Deposit offers the next best rate at 7.75% per year, though this requires locking in funds for a 12-month term.
• FNB’s Tax-free Cash Deposit is also competitive at 7.45%, but requires savers to give 32 days’ notice for access.
• Absa’s Tax-Free Savings provides a rate of 7.25% and the flexibility of access at any time.
• Find out how to optimise your investment with our guide to tax-free savings accounts.

How to choose the right savings account for your needs

When selecting a savings account, first take your savings goals into account. 

Emergency fund saving 

You’ll need an account that offers access to funds for unexpected expenses, so access is more important than earning a lot of interest.

Top picks:

• TymeBank GoalSave: 6% base rate, with the option to earn up to 10% if bonus criteria are met. There are no bank charges, and you can withdraw the funds at any time.
• FNB Linked Savings: 5.9% on balances up to R19,999 is competitive for smaller emergency funds, and you have instant access to funds while paying no monthly fees.

Goal-based saving 

If you’re saving towards something specific over a longer period, say six to 12 months, you can earn good interest but still need to be able to access your funds easily.

Top picks:

• TymeBank Fixed Opening Deposit: You get up to 9% for 12 months and the minimum deposit is R1, making this accessible to all. There are also no monthly fees on the account.
• African Bank Notice Deposit: You get between 7.25% and 8%, and excellent flexibility with 7-90-day notice periods (useful if you need earlier access). 
• Nedbank JustSave: The 6.25%-7.5% range indicates higher balances are needed for top rates, and you will pay bank fees.

Long-term growth 

If your goal is to build wealth over time, look for accounts that reward you for locking away your savings for two to five years.  

Top picks:

• African Bank Fixed Deposit: This account offers a top long-term yield of 10.4% a year over 60 months. This makes it highly competitive if you can commit for the full period.
• Absa Dynamic Fixed Deposit: You can earn up to 8.25% for 60 months. Unlike most fixed deposit accounts, it allows partial access (10-15%) during the term, and the lower minimum deposit (R1,000) is an advantage.
• Nedbank’s Electronic Fixed Deposit and Electronic Optimum Plus: For pure yield, they offer rates of up to 10.62% and 11.31% respectively if you meet the terms and conditions.  

Tax-free growth

If you’re looking to take advantage of tax-free savings and can lock your money away for a while, you could benefit from higher interest rates.

Top picks:

• African Bank’s tax-free investment offers the highest rate at 8.25%, and you can access after 12 months.
• Nedbank’s Tax-Free Fixed Deposit account offers 7.75% a year, but you need to maintain a balance of at least R1,000.
• FNB’s Tax-free Cash Deposit account offers a competitive rate of 7.45%.

Which type of savings account should you choose?

• If you need instant access, TymeBank’s GoalSave offers superior yield (6% base, up to 10% with bonus) and no fees, while Nedbank JustSave offers up to 7.5% (but the best rates require high balances). FNB’s Linked Savings caps at 5.9%, but this is still good for small balances.
• If you have a short- to medium-term goal and can set aside R10 000+, consider TymeBank’s Fixed Opening Deposit (up to 9% for 12 months) and African Bank’s Notice Deposit (up to 8% with 90 days’ notice). Capitec’s Single Deposit (from 7.98% is also attractive).  
• If tax efficiency is key and you have unused TFSA room, lock into African Bank’s TFSA (8.25%) or Nedbank’s TFSA (7.75%) for highest yield.
• For long-term, maximum yield, the accounts that will reward your discipline include African Bank’s Fixed Deposit (10.4% for 60 months), Nedbank’s Electronic Optimum Plus Investment with a yield of up to 11.31% if interest is paid monthly at maturity (for use on banking channels only – and you must be over 55), or Nedbank’s Electronic Fixed Deposit Investment (up to 10.62% if interest is paid at maturity).

What to consider before opening a savings account

Keep the following in mind if you’re about to open a savings account.

• Check if there is a minimum opening deposit and what this may be. It can vary from bank to bank and between accounts. Also, check if there is a minimum balance that must be maintained.
• Check terms and conditions (for example, the FNB Linked Savings account requires a linked current account for transfer, and you need to open a TymeBank EveryDay account to open a GoalSave account).
• Interest rates can be tiered (increasing with your balance), fixed, or variable depending on the account type. Check whether the rate is nominal or effective, and whether it’s paid monthly, quarterly, or at maturity.
• Some savings accounts come with monthly admin fees, while others are completely free of fees. Be cautious of hidden fees that may reduce your effective return.
• If you prefer digital banking, ensure the account can be opened and managed online. Some high-interest options are available exclusively on digital platforms (e.g., Nedbank’s Electronic Fixed Deposit).
  
• Consider whether the account allows top-up deposits, partial withdrawals, or interest reinvestment during the term. Flexible features may suit savers with changing financial needs.

What do you need to open a savings account?

If you don’t already have a savings account and are looking to open one, here’s what you need:

• You must be at least 18 years of age.
• You must be able to produce a South African identification document or passport (for non-citizens), as well as proof of address.
• Many accounts require a minimum deposit to activate them. Make sure you have sufficient funds.

Always do your research before opening an account at any financial institution to ensure you choose the best option for you and your pocket.

FAQs

Does the interest earned on savings beat inflation?

While some fixed-term deposits and notice deposits can offer interest rates that outpace inflation, they rarely protect you over time, which means a loss of purchasing power. Financial consultants generally recommend you invest funds in a combination of cash, bonds, property and equities to beat inflation.  “Depending on the amount invested and the interest earned, income tax can further erode returns, especially once the annual interest exemption – R23,800 for individuals under 65 and R34,500 for those over 65 – is exceeded,” says Schutte.

Is a notice account better than a fixed deposit account?

It depends on your savings goals. Notice accounts typically offer interest rates of between 5% and 8%, depending on the bank and the notice period. However, fixed deposit accounts tend to provide higher long-term rates, often exceeding 8% (especially for long durations). If you need some flexibility, notice accounts allow access to funds after a set period (e.g. 30 days), while fixed deposits lock in funds for a set term and generally offer better returns.

How much should I keep in an emergency fund?

The rule of thumb is three to six months’ living expenses in a highly liquid account (such as an open savings account). Find out how to tell if your emergency fund is big enough.

When thinking about which savings account to open, consider your time horizon for saving, how soon you may need to access the funds, and what the tax implications may be.

The JustMoney savings comparison tool allows you to key in your deposit amount, term and goals, and get a personalised recommendation today.

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