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Fixed deposits and notice accounts

A fixed deposit runs to a date. A notice account needs notice before you withdraw. Both can pay more than a call account because the bank has the money for longer.

Reviewed 29 October 2026 by the WiT Money editorial team. This is general information, not a recommendation from a named adviser.

Key points

  • Early withdrawal is the bank's rule, often with a penalty or lost interest. It is not a right this page can grant.
  • Compare effective annual rates when compounding differs.
  • A qualifying bank deposit may fall under CODI, up to R100 000 per depositor per bank. A unit trust does not.

On a fixed deposit you agree a term and a rate. Interest may be paid out or compounded. If it is paid out monthly, you do not earn interest on the interest inside the deposit. If it compounds, the maturity value is higher than the simple multiple of the nominal rate. The fixed-deposit calculator shows both shapes from figures you enter.

A notice account, such as 32-day or 7-day notice, lets you withdraw after you have given the notice. It is not instant. People use it for money they might need, but not today. Read whether the rate is tiered. A rate that applies only above a large balance is not the rate on the first rand.

Nominal and effective

A nominal annual rate is the stated rate before you account for how often interest is added. Compounded monthly, 12% nominal is a higher effective annual rate than 12% paid once at the end. Ask which one the advert is using. The compound-interest calculator converts a rate you type. It does not fetch a bank's rate.

CODI

The Corporation for Deposit Insurance, a subsidiary of the Reserve Bank, can cover qualifying depositors for up to R100 000 of positive balances in qualifying products if their bank is placed in resolution. The cap is per depositor per bank, not per account. It was described that way on the savings comparison, from the SARB explanation. It does not cover money market unit trusts or RSA Retail Savings Bonds.

Questions readers ask

Can I break a fixed deposit if rates rise?

Only on the bank's terms. The cost of leaving can wipe out the gain from a new rate. Get the penalty in writing first.

Related

Sources

Page updated 29 October 2026. A source date is the day WiT Money checked that page, not a promise the institution has not changed it since.