Savings & Budgeting

Answering common savings and investment questions

Saving and investing are essential to growing your wealth, but if you’re just starting out, it can be tricky to navigate.

Here are some common questions and answers about savings and investment accounts to help you build a foundation of knowledge to make informed decisions about your financial future.

How is interest calculated?

The way your money earns interest depends on the type of savings and investment account you choose. In general, interest is calculated in one of two ways:

Daily interest calculation: Some accounts calculate interest daily based on the balance in your account. This interest is then paid into your account either monthly or on a specific date you choose. This approach helps your savings grow steadily.
Fixed-term interest: For accounts where your money is invested for a set period (e.g. 6 months or 1 year), interest is also calculated daily but only paid out at certain intervals. This can be monthly, quarterly, annually or at the end of the agreed term (also known as maturity).

The longer your money stays untouched in an interest-bearing account, the more potential it has to grow, especially when interest compounds over time.

How can I access my funds?

This depends on the account you choose:

With flexible savings accounts, your money is usually available whenever you need it. You can transfer, withdraw or make payments without penalties, as long as the account is linked to a card or digital banking service.
With fixed-term investment accounts, your money is typically locked in for a specific period. You can do the following:
- Withdraw at maturity: Once the term ends, you can access your funds without any penalties.
- Withdraw early: It’s possible to take your money out before the end of the term, but a penalty fee may apply, and you might lose some of the interest you would’ve earned.

Will my interest get taxed?

Yes, interest earned may be subject to tax, but there are exemptions and thresholds that apply:

South Africans also have access to tax-free savings accounts, where interest, dividends and capital gains are not taxed. If your interest exceeds that threshold (R36 000 per year or a lifetime limit of R500 000), it becomes taxable income.
Everyone is allowed to earn a certain amount of interest tax-free each year. This is known as the annual interest exemption and is determined by SARS.
If your interest income exceeds this threshold, it becomes part of your taxable income and will be taxed at your personal income tax rate.

Can I choose when my interest gets paid out?

In most cases, yes, but there are some limitations based on the account and provider:

Some savings accounts allow you to choose a specific date each month to receive your interest payout.
Fixed-term investment accounts give you more flexibility: you can usually choose to have your interest paid out monthly, quarterly, annually or only when the term ends (maturity).

Is my money safe?

Yes, we take strict measures to ensure your money is secure.

Your funds are held in a regulated account that’s protected by banking laws
You can access your account on our Banking App or Online Banking to track your balance, interest earned and transaction history
You can access these platforms with your unique banking profile, biometric data and multi-factor authentication, adding extra layers of protection.

Are there ways to get a better interest rate?

Yes, getting the best rate depends on the account type and market fluctuations. Consider the following when aiming to earn more interest:

Higher balances typically earn higher interest. The more you save, the more you earn over time.

Fixed-term investments often offer better rates than instant-access savings accounts because you're committing to leave the money untouched for a set period. For instance, a fixed deposit account can offer a higher interest rate than a savings account you can access daily.

Market linked rates mean your interest rate moves in line with market rates. To get the best rate, compare options or speak to a financial advisor for guidance based on your goals.

What fees come with a savings and investment account?

Some accounts do not come with service fees, but it is important to check for the following:

Transactional fees: These may apply if you withdraw, transfer or make payments from your account
Penalty fees: These are charged if you take your money out of a fixed-term investment early
Card or access fees: If your account is linked to an ATM card or has special digital features, small fees might apply

Tip: Review the account pricing structure before opening it to avoid surprises.

Do I need a minimum opening deposit for a savings and investment account?

It depends on the type of account:

Beginner savings accounts often let you start with little to no deposit
Money market or high-interest savings accounts may need a larger initial deposit, sometimes from R100 000 or more.
Fixed-term investments usually have a minimum requirement from R250 or R10 000, depending on the term.

How do I know how my investment is doing?

You can easily monitor your savings or investment through our self-service platforms:

Use your Banking App or Online Banking to check your balance, track your interest earned and set up alerts. You can also sign in for detailed account summaries, statements and performance over time.
Link a card to your account for ATM access, if available, and to check your balance in person.

Wherever you are on your savings future, you can make your money work harder and help create lasting value for years to come. You can compare different accounts and find the right account that suits your needs and goals.

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_{Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).}

_{Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.}