FNB customers can now choose their interest rate on fixed deposits

South Africa’s savings rate is extremely low by international standards. Household savings as a percentage of gross domestic product has declined over the last 15 years from 3.2 percent to 1.5 percent.

As a result, banks are constantly looking for ways to encourage savings and attract retail deposits.

In a bid to encourage investors to make use of fixed deposits, FNB has combined innovation and convenience to deliver a new service to the South African market.

The service is known as My Rate and gives individuals the ability to submit interest rate offers on 3, 6 and 12 month fixed deposits.

My Rate is unique in that it enables investors to quote interest rates on their investments within certain parameters, as well as inform FNB of their preferred investment terms. This happens via a secure and user-friendly platform.

Customers can choose to deposit a minimum of R10 000 and a maximum of R1 million. Interest rates remain fixed for the term of the investment. Interest may be capitalised at maturity or redirected.

“The main driver behind this offering is to afford customers an opportunity to truly maximise their returns on fixed deposit investments,” says Lezanne Human, CEO for Savings and Investments at FNB.

Some of the service’s benefits include:

• Customers may customise their investment to suit their needs.
• Existing FNB customers and non-FNB customers may open accounts without visiting an FNB branch.
• My Rate provides the opportunity to secure highly competitive interest rates.

Banks have been forced to think of creative ways to attract household deposits. FNB is confident that My Rate will renew interest in fixed deposits.

“The view currently held is that traditional fixed deposits are old-fashioned and require a ‘new lease on life’. The My Rate offering is FNB’s reply to the challenge facing fixed investments. We anticipate that My Rate will appeal more significantly to the younger generation,” says Human.