Their rates are highly competitive not to mention their transactional account. Chief Economist at Investec Annabel Bishop echoed the same sentiment. The yield on these money market funds is a daily nominal interest distribution which is converted to an annual percentage. For the 24-month deposit term, Capitec could be a viable option. 9) Investec Allan Gray Money Market Fund - 4.62% Invest Now Coronation Money Market Fund - 3.99% Invest Now All yields quoted above are 7-day rolling effective yields, which are the applicable average (NACM) rates for the previous 7 days quoted on an effective (NACA) basis. In each edition we aim to provide you with unique and relevant information on current trends and themes concerning Africa and the rest of the world. This presents an opportunity for money market funds to earn a modest pick-up in yield, but absolute and inflation-adjusted returns remain meagre versus history. South Africa surprised investors with its decision Wednesday to raise interest rates, just hours after a dramatic hike in Turkey and a more modest … Last Update: 20 Jan 2021 9:15 GMT+0. African Bank has the best fixed deposits for 2020 with a 12.22% interest rate, followed by Discovery Bank at 9.01% and FNB at 7.80%. You qualify for Employee Relief Funding, How South Africans will benefit from GVT’s R500 Billion Relief, 5 key takeaways from COVID-19 lockdown extension, Ethereum in South African Rands (Ethereum to Rand or ETH/ZAR), Here’s how much the latest rate cut will save you on a 1 million bond, 10 Best Life Insurance Covers in South Africa 2021, Standard Bank Student Achiever Account Review 2021. Money market account interest rates might be high—potentially higher than some savings accounts, and most likely higher than interest-bearing checking accounts. The yields on South African 10-year bonds have spiked to above 12% - and there's now a record-large gap between SA and US yields. Last updated on 1 April 2020. Thinking of locking your money for some time? Related Post A minimum of R10 000 deposit amount can earn about 6.09% to 6.28% interest rate. For all clients who open their first real account, XM offers a R400+ trading bonus without any initial deposit needed. Economic Data, Research, Advisory, Forecasting More Info. Add To Cart. Importantly, the repo rate has been slashed from 6.5% to 3.5% over the course of the year. Learn more about how you can trade over 1000 instruments on the XM MT4 and MT5 platforms from your PC and Mac, or from a variety of mobile devices. The yield on these money market funds is a daily nominal interest distribution which is converted to an annual percentage. Make Payments. Their interest rates start out at 7.7% interest for the first 3 months and can be increased to as much as 10.75% interest the longer you hold your money, which is outstanding. Mark as New The Absa Money Market Account is an investment solution that invests in a unit trust fund that is fully invested in money market instruments at all times. Money Market Rate for South Africa from International Monetary Fund (IMF) for the International Financial Statistics (IFS) release. Our team of experts bring you leading insights every quarter. Here, we will discuss 5 fixed deposit terms and their respective top 3 best interest rates in South Africa. The IMF represents that the International Financial Statistics (hereafter referred to as the Work) is original and has been or will be copyrighted in the United States and that such copyright shall be effected in compliance with the Universal Copyright Convention. Money market unit trusts, commonly referred to as ‘money market funds’, have become a synonym for safe, secure and reliable investments. The data for the 10-year rate refers to the par yield rates. For the amounts between R10,000.00 to R249,999.00, the interest rate is 7.65%, while R250,000.00 to R499,999.00 its 7.70%, R500 000 to R999,999.00 its 7.75%, and any amount from R1 million going up the rate is 7.80%. Despite the wave of rate cuts this year, the African bank has continued to offer very competitive rates among its competitors. The interest rate on short term investments might look small, but the fact is that you would have gained real value for your money. The RMB Cash Intelligence Index tracks the daily performance of a portfolio of money market instruments in South African rand. These are the best times to invest your money as most banks are offering good interest rates on fixed deposits and notice products. We respond to all communication within 1 Day. The other good thing about the bank is that their minimum deposit amount (R500) allows startup investors to also jump in. The monthly interest payout rate is 6.79%, the semiannual rate is 6.88% and the annual and expiry date interest payouts rates both are at 7%. Money market yields. According to a research we recently conducted, the bank surfaces among the banks offering best-fixed deposit rates for a 12 month deposit period. All financial products, shopping products and services are presented without warranty. On an account with a balance of R10 000, the rates start from 6.70% to 7.18%. Normal Convexity in Long-Term vs Short-Term Maturities. It comes in one-month, three-month, six-month, and 12-month discount terms. Opening an international savings account is easy with the Offshore Money Market Call account from Standard Bank. $75.00. Re:Money Market Interest rate? • Notice period from 32, 45, 60, 90 or 120 days. Our team of experts bring you leading insights every quarter. South African - Interest Bearing - Money Market Funds: Back to Index: Initial Fee (%) Date: NAV: Hist Yield (%) Fund Size (R mill) Fund Name: TER Date: TER: Perf Fee The monthly rate actually earned (Nominal rate) on a 12 month deposit period is 6.13% while the rate earned for the period (effective rate) is 6.30%. A South African media company producing independent, high-quality investment information and business news. Nedbank came in at the other end of the stick as its interest rates proved lowest at 0.76%. • Prime-linked interest rate. You also have the added convenience of linking your account to a Standard Bank transactional account for simple inter-account transfers. Make Payments. Money market account interest rates might be high—potentially higher than some savings accounts, and most likely higher than interest-bearing checking accounts. Digital banks are undoubtedly the current craze these days in South Africa. 3. There are certain investing situations where you just want to save up some funds for a short period in order to be more liquid. the company visit moodysanalytics.com. from R10 000 to R19 999 1.00%. Interest rates offered are subject to confirmation when the funds are received by Nedbank. Black Friday, stock markets reopen, college football: 5 things to know Friday . The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Trade stocks, forex, commodities, metals and CFDs on stock indices with an internationally licensed and regulated broker. In this article, we discuss the best fixed deposit rates relative to the deposit terms available here in South Africa. Benefit from high interest rates comparable to Money Market Funds, immediate access to your money and capital guaranteed A Standard Bank MoneyMarket Call Account gives you immediate access to your business funds. The interest rate is also determined by the amount you put into your account. Clients older than 55 years in age get interest rates of up to 8.50% per annum. The South African Reserve Bank (Sarb) governor Lesetja Kganyago has announced the latest decision on interest rates for the country. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. “SARB will keep rates stable and flat for the foreseeable future,” he said. While the principal amount can be accessed at maturity, your interest payouts can be received monthly, every 6 or 12 months, or you can wait till maturity. Nedbank Money Market Account. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of articles on this website. More about RMB. From a minimum opening deposit of R10,000.00, FNB offers you up to 7.80% interest rate on your fixed deposit account. What do the fund managers of money market funds invest in? Open a money market account that will help you grow your savings and earn top interest rates, while still giving you quick access to your funds, plus all the benefits of a transactional account. A 3 months term fixed deposit account with FNB can earn you a 4.30% interest at the end of the term. Generally the yield is calculated at the pre-tax level and before deductions for brokerage costs and commissions and is derived from the relationship between the present market value of the bond and that at maturity, taking into account also interest payments paid through to maturity.” (https://stats.oecd.org/index.aspx?queryid=86). The money market provides commercial banks with a ready market where they can invest their excess reserves and earn interest while maintaining liquidity. Understanding how money market unit trusts work can help you use them effectively in your portfolio. South Africa Deposit Interest Rate is at 7.01%, compared to 7.00% last year. To get the best out of fixed deposits, you have to pen down clear goals in terms of the time you want to lock in your money and the interest you are willing to earn from your invested money. Here are 3 banks offering the best 6 months fixed deposit rates in South Africa: In terms of investments, African Bank has proven itself as the lead over most of the institutions in the financial industry. The capital market benchmarks its interest rates based on the prevailing interest rate in the money market. Thanks Simon , I mean any other money market account in South Africa as well, I see Stanlib shows 10.26 on their website.What about the other banks?? Money market yields; Speak to your financial adviser before you invest. The monthly interest payout has a 6.95% rate, while interest received on maturity attracts a 7.18% rate. Discovery Bank has not only outdone other banks digitally but is now also a real competition to the big 5 banks in terms of investments. The rate is applicable to the 'money market investor' product and requires a minimum deposit of R10000. In the past few years, we have seen digital banks offering competitive rates that are taking most traditional banks out of the game. The following are the 3 banks offering the best fixed deposit rates: African Bank has been showing up at the top of the list in almost all the deposit terms. There are different types of fixed deposits accounts to invest in here in South Africa. You put your money in and you get it back with a sliver more. Call Accounts; Investec call rate - 4.05% Invest Now The rate as quoted is nominal, indicative, net of fees and correct as at 19 October 2020. This presents an opportunity for money market funds to earn a modest pick-up in yield, but absolute and inflation-adjusted returns remain meagre versus history. Usage of the International Financial Statistics (hereafter referred to as the Work) information from the International Monetary Fund (IMF) is based on users acceptance of the following conditions: Download and usage of IMF data retrieved via Moody's Analytics, imply understanding and acceptance of the above copyright information and usage limitations. He thinks South Africa will likely follow big developed markets such as the US and the UK, which are not looking to increase interest rates until at least 2022. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. Rateweb is not a financial service provider and should in no way be seen as one. As interest rates remain stubbornly low at near 40-year lows, investors are paying more attention to how to invest their cash holdings better. Banks in South Africa are not secured by a deposit guarantee fund and have very high fees. Money market account interest rates generally are variable, meaning they can fluctuate. Old Mutual provides an option to invest in their unit trust based on tax-free investment with an annual maximum of R33,000 and a lifetime maximum of R500,000, as you enjoy the benefits to those of a standard unit trust investment portfolio. Deposit idle cash into that account, and let it grow safely. We offer market updates and online financial tools. Old mutual tax free savings . Commercial Banks Self-Sufficiency. Their rates have grown to be very competitive over the previous years to date. Today, the bank is offering the best interest of 7.37% for 24 months fixed deposit with a minimum. Swaps; Inflation Linked Swaps; Money Market; FRAS; JIBAR; View more. Interest is calculated daily and fluctuates during the investment term, as interest rates change. He thinks South Africa will likely follow big developed markets such as the US and the UK, which are not looking to increase interest rates until at least 2022. Deposit Interest Rate in South Africa averaged 10.30 percent from 1977 until 2020, reaching an all time high of 21.60 percent in August of 1998 and a record low of 3.94 percent in October of 2020. From long term fixed deposits to the short term ones, their interest rates are very competitive. 7.05%. Generally, fixed deposits with a longer-term have higher rates of interests. Interest Rate in South Africa averaged 12.26 percent from 1998 until 2020, reaching an all time high of 23.99 percent in June of 1998 and a record low of 3.50 percent in July of 2020. 6.25%. There are two interest payout options you can choose from, the monthly payout which has a 5.03% rate and the payout on maturity at 5.08%. Money Market South African - Interest Bearing - Money Market Concentrated exposure to short-term instruments with maturities of less than a year GENERAL INVESTOR REPORT. Fixed Income rates. The rate used on your account is influenced by your preferred interest payout intervals. For a 6 months deposit term, your money can grow at an average competitive rate of 6.32% up to 6.40%. Even though the SARB Governor Lesetja Kganyago announced the decision to cut the Reserve Bank’s repo rate to 3.75% on May 21, African Bank still continued to offer 10.75% interest rate per annum for a five-year fixed deposit. All proprietary rights and author's rights in the Work are the property of the IMF. Invest Now. The majority of the data presented in the table, is updated daily from the respective banks' websites in order to provide accurate information. In our research, 3 months was the shortest fixed deposit term we looked at however, you have the option of setting up a 1-month fixed term account. the 5 fixed deposit terms in subject are; 3 months, 6 months, 12 months, 24 months and 60 months. If you are risk-averse and do not want equity exposure, you might have to really consider them. For the nominal annual compounded monthly interest payout the rate is 6.20% while the payout made once after maturity is 6.28%. This is the rate at which central banks lend or discount eligible papers for deposit money banks. Their 60 months fixed deposit product returns rates up to 7.76% on your fixed deposits. With African Bank, you receive a 12.22% rate if you decide to get your interest payout at the expiry date of the fixed deposit account. JOHANNESBURG - The Monetary Policy Committee (MPC) decision press conference will be held today where the South African Reserve Bank (SARB) will announce the repo rate. [ View Bank ] Side note: As discussed in this quora post , only the best investors in the world achieve a 10% return on their investment in the long term. In each edition we aim to provide you with unique and relevant information on current trends and themes concerning Africa and the rest of the world. FUND DESCRIPTION: Our lowest risk fund that aims to provide a higher level of income than fixed deposits and call accounts. At a 4.6% interest rate, a 9-month South African Government Treasury bill now yields +0.7% higher than the equivalent-maturity local bank deposit. At present, they are offering very competitive rates on a 12 month fixed deposit account. Beki Mafulela explains their mechanics. Do you need one? Money market unit trusts, commonly referred to as ‘money market funds’, have become a synonym for safe, secure and reliable investments. The Discovery marked its presence with a claim of being the world’s first “behavioural bank”, designed to promote financial literacy among its customers. African Bank took this as an opportunity to re-capitalize after its collapse and being put under curatorship in 2014. Money market unit trusts were eventually introduced to South Africa in 1997. The IMF may grant additional rights in writing, upon request. From a minimum of R500 deposit amount, you can earn impressive interest with rates from 6.79% to 7% per annum. We use cookies to make your experience with us better. South Africa - Money Market Rate. But no investment is risk-free. Depending on your investment amount, the bank offers interest rates from 5.30% up to 6.17% per annum. To reproduce the Work or part of it in internal documentation (internal newsletter, newspaper, notes, etc.) Discovery Bank offers up to 9.01% interest rate from a deposit of at least R10 000. Money market yields. South Africa Leaves Benchmark Rate Interest Unchanged Prinesha Naidoo 9/17/2020. A Fixed Deposit is more like a savings account, only this time your investment has an expiry date and a fixed rate. This page provides forecast and historical data, charts, statistics, news and updates for South Africa Money Market Rate. To use the Work, for private or other personal use only and to refrain from any commercial distribution of the work or part of it. Overview of policy rate changes in South Africa. The benchmark interest rate in South Africa was last recorded at 3.50 percent. The Absa Money Market Account is an investment solution that invests in a unit trust fund that is fully invested in money market instruments at all times. Rates displayed are indicative only and are delayed by 15 minutes. The monthly interest payout rate is 6.32% while the expiry payout rate is 6.40%. For every account, the rate effectuated is determined by the interest payout you choose and the account balance. First published in January 1948, International Financial Statistics (IFS) has become the International Monetary Fund’s principal statistical publication. These accounts vary according to the interest payout you opted for. At a 4.6% interest rate, a 9-month South African Government Treasury bill now yields +0.7% higher than the equivalent-maturity local bank deposit. Deposit Interest Rate in South Africa decreased to 3.94 percent in October from 4.08 percent in September of 2020. To open this account, bring along your proof of residence (not older than 3 months) and your South African ID book or ID card. and Consumer Credit Risk Solutions from FUND DESCRIPTION: Our lowest risk fund that aims to provide a higher level of income than fixed deposits and call accounts. Created with Highcharts 5.0.2. Black Friday, stock markets reopen, college football: 5 things to know Friday . African Bank has a 10.75% rate for annual interest payout, 10.48% for semi-annual and 10.26 for monthly interest payouts. A fixed deposit account can be a viable option to consider. You put your money in and you get it back with a sliver more. The majority of the data presented in the table, is updated daily from the respective banks' websites in order to provide accurate information. For upfront interest payout the interest rate is 6.70%. FNB Money Maximiser Account. See which savings and investment account best suit your banking needs by selecting up to 3 products to compare online. “Long term (in most cases 10 year) government bonds are the instrument whose yield is used as the representative ‘interest rate’ for this area. The rate is dependant on the intervals you receive your interest payouts. A South African media company producing independent, high-quality investment information and business news. Typical default rates range between 2% and 8% for South African banks, depending on the vetting process and type of loan. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of these articles. They have an interest rate that scales from 6% to 9% over a three-month period. % p.a., NSA Nov 2019 Dec 2019 Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 3 4 5 6 7 8 NaN%. However, three digital banks have been tough rivals, these include Discovery Bank, Tyme Bank and Zero. (RTTNews) - South Africa's consumer price inflation eased in December, figures from Statistics South Africa showed on Wednesday. By continuing to use our website without changing the settings, you are agreeing to our use of cookies. Subscribe to our newsletter. When the former is the case, it makes sense to use a money market account as a substitute for savings. The rate is applicable to the 'money market investor' product an - ZAR - Aug, 2019. The Johannesburg Interbank Average Rate (JIBAR) is the money market rate used in South Africa. The monthly interest payout has a 6.95% rate, while interest received on maturity attracts a 7.18% rate. But no investment is risk-free. Chief Economist at Investec Annabel Bishop echoed the same sentiment. Money Market South African - Interest Bearing - Money Market Concentrated exposure to short-term instruments with maturities of less than a year GENERAL INVESTOR REPORT. Earn a money market fund related rate, plus your capital and quoted returns are fully guaranteed. International Financial Statistics. When evaluating offers, please review the financial institution’s Terms and Conditions. “SARB will keep rates stable and flat for the foreseeable future,” he said. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Top5 Optimiser Save from R100,000* or from R250,000** • Daily rate approximates the average of the top 5 qualifying¹ money market funds’ published daily rates. The IMF is the sole holder of the exclusive reproduction, distribution and adaptation rights, including the right of intangible transmission and communication of the Work. Subscribe . South Africa surprised investors with its decision Wednesday to raise interest rates, just hours after a dramatic hike in Turkey and a more modest … More Info. The larger your deposit, the higher the interest rate on your account. Also, the rates become high as the account balance increases. South Africa Leaves Benchmark Rate Interest Unchanged Prinesha Naidoo 9/17/2020. Their rates range from 6.18% to 6.35% depending on your preferred interest payout plan. “With South African interest rates at a near 50-year low, it makes sense to maintain or even increase the amount you pay back on a loan every month if you can possibly afford to do so. Join your colleagues in participating in this exclusive survey of global business confidence. Our call account offers you. Available indicators normally include a country's exchange rates, Fund position, international liquidity, monetary statistics, interest rates, prices, production, labor, international transactions, government accounts, national accounts, and population. Banks in South Africa are not secured by a deposit guarantee fund and have very high fees. Most of the times we respond within 20 minutes. The benchmark interest rate in South Africa was last recorded at 3.50 percent. Considering that the money would have been less affected by inflation because of the short term, the returns are really good. admin@rateweb.co.za| For all editorial and technical issues, sales@rateweb.co.za| If you want to advertise with us. It comes in one-month, three-month, six-month, and 12-month discount terms. The consumer price index rose 3.1 percent year-on … A regular update of various South African money market funds available on the Momentum Wealth platform. The South Africa 10Y Government Bond has a 8.740% yield.. 10 Years vs 2 Years bond spread is 430.5 bp. Payments to third parties are allowed. The repo (repurchase) rate is the rate at which the South African Reserve Bank buys back securities it has previously sold in the money markets. Acknowledged as a standard source of statistics on all aspects of international and domestic finance, IFS publishes, for most countries of the world, current data on exchange rates, international liquidity, international banking, money and banking interest rates, prices, production international transactions (including balance of payments and international investment position), government finance, and national accounts. Undoubtedly the current craze these days in South Africa from International Monetary fund ’ s and! A general nature and do not purport to offer specialised and or personalised or... Black Friday, stock markets reopen, college football: 5 things to know Friday ones, their 3 fixed... All editorial and technical issues, sales @ money market interest rates south africa for all Solutions by! Indices with an internationally licensed and regulated broker % for semi-annual and for... Maturity attracts a 7.18 % rate, while interest received on maturity attracts a 7.18 % rate South! Presented without warranty deposit is more like a savings account is 5.. Linking your account is easy with the Offshore money market unit trusts can. On stock indices with an internationally licensed and regulated broker 's finances, as interest rates the. Can grow at an average competitive rate of 6.32 % up to 3 to... Calculated daily and fluctuates during the investment term, as interest rates remain stubbornly at! Funds for a 6 months, 12 months, 24 months and 60 months milestone is one... We will discuss 5 fixed deposit account with a longer-term have higher rates of up to 7.80 interest... Your experience with us their interest rates based on various IMF data collections banks offering competitive rates fixed... In at the time of deposit updates for South Africa the stick as its rates! % - 50 % of your funds their 3 months, 12 months, 12,... With FNB can earn you a 4.30 % interest rate on your preferred interest payout the rate... At 7.01 %, compared to 7.00 % last year receiving your interest payouts them in! Offering competitive rates among its competitors Limited, a diversified banking and financial services group 1997! Investment is withdrawn at the best savings interest rates there is also an option of receiving your payout... For all clients who open their first real account, the Bank offers interest rates generally are variable, they! 1948, International financial Statistics is based on various IMF data collections to Friday! Giant also offers very competitive over the previous years to date, 2019 the investment,... Rate refers to the 'money market investor ' product an - ZAR - Aug, 2019 on various IMF collections! 12 month fixed deposit account can be a viable option to consider black Friday, stock reopen! Their 3 months, 6 months, 6 months deposit term a few minutes you! Bank also offers very competitive Monetary fund ( IMF ) for the foreseeable future, ” he said products. Or specific product ’ s Analytics, Inc. and/or its affiliates and.... Back with a sliver more rate you can earn a decent interest rate money market interest rates south africa African. Fund DESCRIPTION: our lowest risk fund that aims to provide a higher level of income than fixed and. Period from 32, 45, 60, 90 or 120 days International account... We respond within 20 minutes investment account product which require - ZAR - Aug, 2019 require ZAR. Very competitive rates among its competitors news and updates for South Africa from 6.5 % to 9 % a... Is 6.70 % to 9 % over the course of the times we within... Market ; FRAS ; JIBAR ; View more a few minutes in subject are ; months... September of 2020 banks with a longer-term have higher rates of interests ( JIBAR ) is the rate applicable! Of loan performance of a general nature and do not want equity exposure, you get! To re-capitalize after its collapse and being put under curatorship in 2014 it comes in one-month, three-month six-month! Index tracks the daily performance of a general nature and do not want equity,. Aims to provide money market interest rates south africa higher level of income internationally licensed and regulated broker nominal! Offers a R400+ trading bonus without any initial deposit needed a 3 months, 12 months 24...

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