Fixed Investments – Digital Only
What the Account Is For
This account is for when you’ve got a lump sum you’re not planning to touch for a while. Whether you’re saving up for a big goal, building wealth, or just want a safe place for your money to grow, the Electronic Fixed Deposit gives you great returns with no monthly fees. You choose the fixed term and get rewarded with better interest rates based on how long (and how much) you invest.
How the Account Works (with Examples)
- You invest a once-off lump sum of R1,000 or more.
- You choose a fixed investment period between 1 to 60 months.
- The interest rate you get depends on the amount you invest and the term you choose.
- No top-ups or withdrawals are allowed during the term.
Example:
If you invest R25,000 for 12 months at a nominal interest rate of 7.80%, you’ll earn about R1,950 over the year before tax. If you invest R1 million for 60 months at 8.55%, you could earn up to 10.62% by maturity.
Pros and Cons
| 👍 Pros | 🚗 Cons |
| High fixed interest rates | You can’t access the money early without penalties |
| No monthly fees | No top-ups allowed after initial deposit |
| Guaranteed returns | Available only via online banking or the Money app |
| Higher rates for higher deposits | Minimum R1,000 to start |
Who Should Consider This Option
- If you have a lump sum and won’t need access to it for a while.
- If you prefer a guaranteed return with zero risk.
- If you want to manage your investment easily online or via an app.
Interest Structure (Nominal, Effective, Maturity)
- Nominal Rate: The advertised flat annual interest rate.
- Effective Rate (AER): Reflects interest-on-interest if payouts are reinvested.
- Rate at Maturity: The full return you get if interest is paid at the end.
Examples:
- R1,000 invested for 3 months at 7.30% nominal earns ~7.34% at maturity.
- R250,000 invested for 60 months at 8.45% nominal earns 10.47% at maturity.
- R1 million invested for 60 months at 8.55% nominal earns 10.62% at maturity.
Tax Implications (South African Laws)
- Interest income may be taxed. If you’re under 65, the first R23,800 per year is tax-free.
- You’ll receive an IT3(b) certificate showing interest earned.
- If your total interest is above the threshold, it must be declared in your tax return.
- If you use a Tax-Free Savings Account, returns are fully tax-free.
How to Apply
| Group | Required Documents |
| SA Citizens | SA ID, proof of residence (under 3 months old), R1,000 deposit |
| Foreign Nationals | Passport, valid permit, proof of residence, R1,000 deposit |
- This account can only be opened online or through the Nedbank Money app.
- Not available in branches.
Final Takeaway
If you’re looking for a safe, digital way to grow a lump sum with excellent rates, the Electronic Fixed Deposit is a smart option. Just make sure you won’t need the money for a while.
👉 Apply online via Nedbank’s website or the Money app to get started.