Savings
Fixed Deposit Calculator South Africa 2026
See how much interest you will earn on a fixed deposit with compound interest — and compare the best rates from Capitec, FNB, ABSA, Nedbank and African Bank.
✓ Updated with 2026 rates•✓ Free & no sign-up•✓ Instant results
Fixed deposit returns
Live estimate · compound interest · SARS tax · 2026
R
R1,000 – R2,000,000
Typical SA fixed deposit rates: 7% – 10%
Interest exemption: R23,800/year (under 65)
Maturity value (before tax)
R108 300
after 12 months at 8% p.a., compounded monthly
Deposit amount
R100 000
Gross interest
R8 300
Effective annual rate
8.30%
Estimated tax
R0
Net interest
R8 300
Net maturity value
R108 300
A R100 000 fixed deposit for 12 months at 8% per year earns about R8 300 interest, maturing at R108 300 — tax-free, as the interest falls within the R23,800 annual exemption.
Tax on interest (South Africa)
- Annual interest exemption: R23,800 if under 65, R34,500 if 65 or older
- Interest above the exemption is taxed at your marginal rate (up to 45%)
- Most SA banks compound interest monthly
- Early withdrawal usually forfeits interest or attracts a penalty
SA fixed deposit rates (2026)
| Bank | 12 months | 24 months | Min deposit |
|---|---|---|---|
| FNB | 7.5% – 8.5% | 8.0% – 9.0% | R1,000 |
| Standard Bank | 7.25% – 8.25% | 7.75% – 8.75% | R10,000 |
| ABSA | 7.5% – 8.5% | 8.0% – 9.0% | R5,000 |
| Nedbank | 7.75% – 8.75% | 8.25% – 9.25% | R1,000 |
| Capitec | 8.0% – 9.0% | 8.5% – 9.5% | R500 |
| African Bank | 9.0% – 10.0% | 9.5% – 10.5% | R500 |
Rates vary by term, deposit size and current repo rate. This is an independent estimate, not a quote — confirm the exact rate with your bank.
How fixed deposits work in South Africa
A fixed deposit lets you lock a lump sum away for a set term in exchange for a guaranteed interest rate, usually higher than a normal savings or call account. Your money is committed for the full term, so it is best for cash you will not need until the deposit matures.
Guaranteed returns
The interest rate is fixed for the whole term, so your return is known upfront regardless of rate changes.
Higher rates
Fixed deposits typically pay more than savings or call accounts — around 7% to 10% in 2026.
Fixed terms
Terms run from about 1 month to 5 years. Longer terms and bigger deposits usually earn higher rates.
Compound interest
Most SA banks compound monthly, so interest earns interest over the term and beats simple interest.
Fixed deposit vs notice deposit vs money market
Fixed / term deposit
Money is locked for a set period. Highest rates, but penalties or no access for early withdrawal.
Notice deposit
Give notice (often 32 days) before withdrawing. More flexible, with rates better than a call account.
Money market
Higher minimum balances and competitive variable rates, often via unit trust companies.
Tax on fixed deposit interest (2026)
Annual interest exemption
SARS exempts the first R23,800 of interest a year if you are under 65, and R34,500 if you are 65 or older. Many smaller deposits therefore earn interest entirely tax-free.
Interest above the exemption
Interest over the exemption is added to your taxable income and taxed at your marginal rate — up to 45% for high earners. The calculator can factor this in.
Consider a tax-free alternative
Fixed deposit
Best for short-to-medium term goals where you want a guaranteed, capital-safe return. Interest is taxable above the annual exemption.
Tax-Free Savings Account
For long-term saving, a TFSA grows 100% tax-free — up to R36,000 per year and R500,000 over your lifetime, with no tax on interest, dividends or capital gains.
Frequently asked questions
Quick answers to the most common questions.
How is interest on a fixed deposit calculated in South Africa?
Fixed deposits earn compound interest at a rate locked in for the full term. Most SA banks compound monthly, so each month’s interest is added to the balance and earns further interest. For example, R100,000 at 9% compounded monthly grows to roughly R109,380 after one year, slightly more than simple interest because of compounding.
What are typical fixed deposit rates at South African banks in 2026?
Rates generally range from about 7% to 10% depending on the bank, term and deposit size. African Bank, Capitec and TymeBank often offer the most competitive rates, while the big four (FNB, ABSA, Nedbank, Standard Bank) tend to sit slightly lower. Longer terms and larger deposits usually earn higher rates.
Do I pay tax on fixed deposit interest?
Yes. Interest is taxed at your marginal income tax rate, but SARS allows an annual interest exemption of R23,800 if you are under 65 and R34,500 if you are 65 or older. Only interest above the exemption is taxable, so smaller deposits often earn interest tax-free.
Is there a penalty for withdrawing a fixed deposit early?
Usually, yes. Because your money is locked for a set term, banks either refuse early access or charge a penalty — commonly a reduced interest rate or forfeiting a portion of the interest earned. If you may need the cash sooner, a notice deposit (e.g. 32 days’ notice) is more flexible.
Is a fixed deposit better than a TFSA?
They serve different goals. A fixed deposit offers a guaranteed rate over a fixed term but its interest is taxable above the exemption. A Tax-Free Savings Account grows completely tax-free (up to R36,000 per year, R500,000 lifetime) and suits long-term wealth building. For short-term, capital-safe goals a fixed deposit wins; for long-term tax-free growth, a TFSA usually wins.