Discovery Fixed Deposits Compared

[fire2029]

Discovery Bank's Fixed Deposits rates compared to other banks ... Definitely topping the rankings...

Source: www.ratecompare.co.za

3 month fixed deposit...




12 month fixed deposit

 

[3WA]

Are these fixed deposit accounts generally free, or do we also have to factor fees into the mix?

 

[zerocool2009]

I see fixed deposits are topics the last week on myBB

The question I ask myself, why do you want to make it "fixed" if you can do with a better rate not having it fixed, with no fees (and immediate available).

 

[SauRoNZA]

Discovery Bank's Fixed Deposits rates compared to other banks ... Definitely topping the rankings...

Source: www.ratecompare.co.za

But they aren't topping the rankings in your pictures?

Also at what cost to holding the account? Interest isn't everything.

 

[fire2029]

Are these fixed deposit accounts generally free, or do we also have to factor fees into the mix?

Reading through the Ts & Cs of various banks' website (including Discovery bank)... there do not seem to be any additional fees for fixed deposit investments. In a personal fixed deposit investment, I can confirm that no additional fees were levied.

This obviously excludes any transaciton fees associated with transferring money into your fixed deposit accounts .

 

[fire2029]

I see fixed deposits are topics the last week on myBB

The question I ask myself, why do you want to make it "fixed" if you can do with a better rate not having it fixed, with no fees (and immediate available).

Reg: why do you want to make it "fixed" if you can do with a better rate not having it fixed
You will get paid more for taking on additional liquidity risk. If you compare fixed deposit rates to money market rates (with similar credit risk exposure), you will see that you generally get 0.5 to 1% better in fixed deposit rates. However, your money is obviously 'tied'/ fixed in for a term ... therefore the uplift in rates.

Reg: ...you can do with a better rate not having it fixed, with no fees (and immediate available).
I think you are referring to TymeBank's goal save offering of + 9% . Note you are taking on additional credit risk here vs other banks. But I agree, the TymeBank offering is certainly a great offer with more immediate access to money. But like i said, don't lose sight of the fact, that you are taking on additional credit risk (ie the risk that Tyme may default on its obligations). That's why African Bank is topping the charts in Fixed Deposit rates. Same story...you are taking on more credit risk.

 

[mr_norris]

Source: www.ratecompare.co.za

That is a cool website, and I assume it's yours. I just wanted to comment on the dark mode - black text doesn't work on a navy blue background. I can see it just fine, but people with eye issues might battle.

Otherwise it might be useful to have some sort of fixed + not fixed comparison, as what @zerocool2009 mentioned, you can do better (in some cases) with not fixed.

 

[fire2029]

That is a cool website, and I assume it's yours. I just wanted to comment on the dark mode - black text doesn't work on a navy blue background. I can see it just fine, but people with eye issues might battle.

Otherwise it might be useful to have some sort of fixed + not fixed comparison, as what @zerocool2009 mentioned, you can do better (in some cases) with not fixed.

Cool thanks for insight! Removed ability to change to dark theme

 

[SaiyanZ]

You can get a bit higher with Discovery if you have enough savings to get to Diamond status. Base interest rate of 6% and 1.5% bonus for being on Diamond status. So 7.5% p.a. instant access. If I recall correctly, the bonus interest rate is 0.5% for Silver status, 1% for Gold status and 1.5% for Diamond status. So there's no reason to ever use the fixed deposit account unless you're saving and don't need the money for 2 years+ or can't get to Diamond Status.


They also say this on the website so can maybe get more than 7.5% though that would be odd (as in too good) for instant access. Will pay them a visit soon.

Preferential negotiated interest rate boost available on deposits greater than R100 000