This post is all about Capitec account types. What’s on offer and how they work. This is NOT sponsored in any way and there is no hidden agenda here. lol. It’s just that I am a Capitec client myself so I thought that I should write about what I know.
When looking at the various types of accounts at Capitec I’ve divided them in to the following broad categories:
- The Capitec transactional account
- Capitec savings accounts
- Capitec tax free savings account
- Credit card
- Capitec business accounts
- Personal loans
- Capitec Home Loans
What is a transactional account?
A transactional bank account is probably the most common type of account that everyone knows and uses. It’s an account that you can transact on using a card, electronic payments, or ATM’s. There are not usually any limits on who you can pay, nor how many payments you can make or receive. It’s just a “standard” type of bank account that you would expect.
When you open a Capitec account you’ll get your “main” account which is your transactional account. This is the account which has a linked ATM and debit card, and it is the main account shown on the banking app. It’s also the account from which your monthly account fee is taken.
Capitec Savings Accounts
Of all the Capitec account types, I love the savings accounts most. Firstly because I like saving and organising my money, but secondly, because they have cool features.
You can add up to 4 savings accounts via the Capitec App. It’s super easy to add them and to give them a unique name. Each linked account has it’s own account number. You can send and receive money to each account directly. So, you could use the account for your side-hustle money, or as a specific savings account. Only thing to note is that your debit card does not work against any of these savings accounts. So you can not draw money from the ATM or swipe your card and try to use a linked savings account.
When you create a savings account you can choose a flexible savings plan or a fixed deposit.
Capitec Flexible Savings Accounts
The Capitec Flexible Savings account is an ordinary savings account where you can transfer money in and out as you need. You can make payments form the account and request to receive payments to your account. You can set up future dated transactions and ETFs. Everything you would expect from a savings account except that you cannot withdraw money at an ATM or use a card for payments.
Capitec Fixed Deposits
The Capitec Fixed Deposit account allows you to earn more interest based on the length of time you are willing to lock away your money. The longer the fixed deposit term, the higher the interest. You can find the Capitec Interest rates here. You can also decide whether to open your fixed account with a single lumpsum only, or whether you wish to make multiple deposits. This also affects your interest rate. You can “unlock” your money at any time, called “unfix term” in the Capitec app. There is a fee (penalty) involved.
So does Capitec have a 32 day account? No. A fixed deposit account is different as you need to choose upfront how long your money will be locked away. A 32 day account however allows you to keep your money for any period of time, provided you give 32 days notice before withdrawing it. You don’t get the option of a Capitec 32 day account; here is a good article explaining what a 32 day account is.
How to save money monthly with Capitec
A little trick that I do is to create a recurring payment that transfers money from my main Capitec account, to my savings account, each month. I have set this to happen a few days after my salary is paid, and it just happens automatically. This allows me to save money without really thinking about it.
How to pay off debt
Without going into debt review – see this post on how to pay off debt
The Capitec Tax Free Savings Account
One of the Capitec account types is a Tax Free Savings Account, or TFSA for short. I have not personally opened a Capitec TFSA, so I am not 100% sure how it works. From the website though it seems that you need to open this type of account from a branch, and that it is simply an interest earning account.
IMPORTANT: Please make sure that you understand what a Tax Free Savings Account is. Read my linked article and between you and me, rather don’t use a TFSA from a bank as you won’t earn the same growth as you would if you invested in equity (stocks). Do your research before opening up a TFSA! Don’t simply believe anyone you listen to or anything you read. Ask questions, use independent and trustworthy resources!
The Capitec credit card
The Capitec credit card works just as any other credit card. You apply online or via the app and if approved, you’ll get the card. There is a monthly fee of R40 and the interest rate charged is between 7.00% – 17.50%, based on your credit profile. Credit cards can be super useful, but at the same time they are expensive and can very easily lead to bigger debt problems.
Take a look at my post on the pros and cons of credit cards.
Does Capitec have a business account?
Capitec doesn’t offer business banking directly, but they have acquired Mercantile Bank and offer business accounts through them. Although they own Mercantile Bank, it is still a completely separate bank and you will need to deal directly with Mercantile Bank. You can apply for a business account and make use of their tailored solutions, but not directly via Capitec.
Capitec bank personal loans
As with most banks Capitec does offer personal loans but I will not say much about them. Personal loans are EXPENSIVE! In this case, the interest rate is anything from 9% – 24.5%. Using the Capitec personal loan calculator they don’t say what your interest rate will be, but it will be high! Please also note that you should really not use a personal loan for car finance or home financing – that would be a terrible mistake! And, as far as possible, don’t take out personal loans!
Some reading at this point:
Capitec bank home loans
Capitec bank have partnered with SA Home Loans to offer you home loans. That means that Capitec bank itself does not offer any home loans, rather, they have made it simple to apply via SA Home Loans. They have also created procedures and systems in the backend to facilitate this.
Here are some related posts about home loans and costs – good to read up about if you’re considering entering in to the property market soon.
My online home loan calculator
See what the home loan initiation fee is
All the costs involved in buying a home
What is the Capitec bank branch code?
The universal Capitec Branch Code is: 470 010
This applies to all Capitec account types.
What do you need to open a Capitec account?
Capitec account opening is quite easy and you just the standard FICA documents that are required by any financial institution. This is what you need to open a Capitec account:
- Your green ID book, Smart ID Card or SA Passport,
- proof of residence,
- a valid email address, and
- a valid SA cellphone number.
You can open an account by simply using your phone, provided that you have a smartphone and can install the Capitec app. This requires Android, Huawei or iOS.
