Best interest rate over 12 months fixed deposit?

[biometrics]

Where can I get the best interest rate over 12 months fixed deposit for R500k?

I sold my house and I'm only buying again in 12 months. I was considering paying off my car (at prime) but I'll need it next year for the deposit.

As long as I can get a rate close to what my car costs I'll rather hang on to it.

Suggestions?

 

[FlashSA]

At the moment, best you are going to get is 6% (confirmed on FNB site with a 12 month fixed deposit).

Alternative is to settle the car and then when you need the full R500k again, find a used car outlet who is willing to set you up by refinancing your car over a shorter period to match the installments you are currently paying and to give you the money back which you originally put in to settle - it will only cost you a new initiation fee and you could've thrown 12 months of car installments towards your next house deposit.

I have done this in the past. Cousin is sales manager at a local car dealership. I needed to get some of the initial deposit out of my wife's car so I went to him and he settled the car, then sold it back to me at the higher price and gave me a cheque for the difference. He made money by getting a deal fee back from the finance house.

 

[MKFrost]

Capitec

Following is for amounts over R100k and based on a single deposit:

6.25% - 6 months
6.50% - 7 to 12 months
6.75% - 13 to 18 months
7.25% - 19 to 24 months
7.85% - 25 to 36 months
8.50% - 37 to 48 months
9.00% - 49 to 60 months

https://www.capitecbank.co.za/global-one/save/rates-and-fees

 

[DVWM]

Best I have seen is recently acclaimed Finbond Mutual Bank
Offering the following:
Get the best interest rate on your capital and earn up to 10% per annum. The ideal savings and investment account for investors and pensioners requiring a high, guaranteed rate, of return in the current environment of depressed low yields and declining interest rates. Interest can be capitalised or paid monthly, quarterly, half yearly or annually.

06 - 11 months 7.50%
12 - 24 months 8.00%
25 - 36 months 9.00%
37 - 48 months 9.50%
49 - 60 months 9.75%
66 - 72 months 10.00%
Minimum deposit R 100 000 (one hundred thousand rand). Subject to an approved application. Product Rules, Terms and Conditions apply. Interest can be capitalised or paid monthly, quarterly, half yearly or yearly

 

[LaraC]

Finbond Mutual Bank is fairly new to the market so their track record is not certain. Their rates seem fantastic though.

Could be that I'm biased but another option for 12 month fixed deposit is at Investec for 6.95%.

 

[CharlieM]

Finbond is relatively new, but they seem to be making all the right noise, and I dont think there is much risk in investing in their fixed term deposits. Equity markets are very high at the moment but you might even want to think of investing in their shares.

http://www.moneyweb.co.za/moneyweb-financial/finbond-the-next-capitec

 

[diggitydaz]

The rates are negotiable.

Some banks will match or better quoted rates.

 

[Cius]

Finbond is the most recent bank to get a banking license. The reason they offer such high rates is that they are short term loan sharks and they used to get money at much higher rates from off-shore entities. The deposit rates they offer are a lot cheaper than their offshore sources hence the better rates. Still, they are a small opperator and the rates are very good. There is a risk of the institution failling and you loosing everything though if their default rate gets too high. If you want that much risk you may as well put the money into shares.

If you can last 24 months instead of 12 perhaps consider retail bonds. They are essentially risk free and much better than fixed deposits:

https://secure.rsaretailbonds.gov.za/