Fixed deposits are designed for lump-sum savings, but a couple of banks offer more flexible arrangements that allow you to make multiple deposits over a fixed period.
* FNB’s Flexi Fixed Deposit requires a minimum deposit of R100. You can deposit more at any time, but withdrawals are limited to two of not more than 15 percent of your savings. There is a fixed term of three or 12 months, which you can then renew. Interest is tiered at 2.25 to 4.25 percent. Unlike a regular fixed deposit, where the interest rate would remain fixed for the investment term, the rates fluctuate in line with general interest rates.
* Capitec offers a fixed-term savings plan with multiple deposits for clients on their Global One facility. You can deposit money when you like but cannot withdraw anything before the term is up. Interest rates are fixed for the term (six, seven to 12, 13 to 18, or 19 to 24 months) and range from 6.1 to 6.6 percent for amounts in our investment range. Taking an average rate of 6.4 percent, and deducting the monthly R4.50 administration fee, the final savings figure would be R34 947. Bear in mind that, because the interest rate is fixed for the investment term, you would lose out if the rate had to rise.
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