Capitec Savings account interest rate change

[DarkImpact]

Good day.

So in the past one received 5% interest if your Capitec account (and 4 additional linked accounts) were below R10,000. If the balance was above R10,000, you would receive 4.5%. This never made sense to me because normally one would receive higher interest on higher balance.

Today I logged in to my online banking and I saw that my interest on the accounts is 4.4% and my balance is below R10,000. I immediately went to the Capitec site and saw that effective 12 February 2014 the interest rates have changed.

The interest rates have changed as follows:

Transaction/Savings account
Amount (R) Interest
0 – 9 999 : 4.4%
10 000 – 24999 : 4.5%
25 000 – 99999 : 4.6%
100 000+ : 4.75%
Link to site:
https://www.capitecbank.co.za/global-one/save/rates-and-fees

So the interest increase if you have more money in the account. This is in line with what I expect. Here is my issues. You will no longer be able to get 5% no matter the amount in the account. My biggest issue with this change is the recent increase in the repo rate by 50 basis points. So interest rates went up 0.5% and therefore Capitec will be getting more money from their debt book and in return they decrease the interest they have to pay us? This really doesn't make sense. What are your opinions?

 

[MKFrost]

I think their aim is to get more people to go for the fixed term deposits where you can still earn up to 8.5% depending on the amount.

 

[FuLL_MeT4L]

Hadn't spotted this change. Thanks for pointing it out!

 

[supersunbird]

Good day.

So in the past one received 5% interest if your Capitec account (and 4 additional linked accounts) were below R10,000. If the balance was above R10,000, you would receive 4.5%. This never made sense to me because normally one would receive higher interest on higher balance.

Today I logged in to my online banking and I saw that my interest on the accounts is 4.4% and my balance is below R10,000. I immediately went to the Capitec site and saw that effective 12 February 2014 the interest rates have changed.

The interest rates have changed as follows:

Transaction/Savings account
Amount (R) Interest
0 – 9 999 : 4.4%
10 000 – 24999 : 4.5%
25 000 – 99999 : 4.6%
100 000+ : 4.75%
Link to site:
https://www.capitecbank.co.za/global-one/save/rates-and-fees

So the interest increase if you have more money in the account. This is in line with what I expect. Here is my issues. You will no longer be able to get 5% no matter the amount in the account. My biggest issue with this change is the recent increase in the repo rate by 50 basis points. So interest rates went up 0.5% and therefore Capitec will be getting more money from their debt book and in return they decrease the interest they have to pay us? This really doesn't make sense. What are your opinions?

The loans are fixed rate, so Capitec make less on those (not really, just theoretically)

 

[^^vampire^^]

Thanks for pointing this out, never knew.

Time to move my money elsewhere. Disappointing as Capitec was so good when it started and now it's just going the same way of other banks. Waiting for the double digit account cost increases soon and 1% interest on saving accounts. They're getting greedy

 

[akescpt]

I reckon they are still giving more interest than most other banks...

 

[DarkImpact]

The loans are fixed rate, so Capitec make less one those (not really, just theoretically)

Jip small brain fart there. Must have been the shock of losing about R5 a month in interest.

 

[ShaunyCT]

Their fixed deposit 8.5%? Thats way better than other banks.

 

[^^vampire^^]

If you have R100 000 or more in which case you would be dumb to put it in a fixed deposit.

 

[MKFrost]

If you have R100 000 or more in which case you would be dumb to put it in a fixed deposit.

Not necessarily, depends on personal circumstances. For some 8.5% might be more than enough considering that there is no risk attached.

 

[Arthur Morgan]

It hasn't been 5% for quite some time now, quietly decreasing without letting the consumer know. But hey, still a lot better than the bigger banks for now..

 

[SauRoNZA]

Thanks for pointing this out, never knew.

Time to move my money elsewhere. Disappointing as Capitec was so good when it started and now it's just going the same way of other banks. Waiting for the double digit account cost increases soon and 1% interest on saving accounts. They're getting greedy

Elsewhere? Where you'll get even less.

All this over .5% ?

 

[DVWM]

You can get 5% at Bidvest on a 7 day call account. Pain to open and deposit and deal with but you get 5%
withdrawals also a pain but I withdrew without giving a 7 day notice and they did it.

 

[SauRoNZA]

You can get 5% at Bidvest on a 7 day call account. Pain to open and deposit and deal with but you get 5%
withdrawals also a pain but I withdrew without giving a 7 day notice and they did it.

At what cost to have the account though?

I mean of the account costs R250 a month you'll need R60 000 invested to break even.

I'm sure it's much less than that, just saying that if Capitec's interest rate is lower but their costs are lower as well then it more than likely makes more sense.

 

[ld13]

At what cost to have the account though?

There are seemingly no fixed monthly fees.

 

[SauRoNZA]

There are seemingly no fixed monthly fees.

In that case it's a pretty good deal apart from the ball ache to get it setup.

 

[^^vampire^^]

Elsewhere? Where you'll get even less.

All this over .5% ?

Could probably do a lot better in a unit trust.

 

[SauRoNZA]

Could probably do a lot better in a unit trust.

"Could" being the major difference.