Deposit Calculator South Africa 2026
Calculate how much you need for a home deposit
Deposit requirements vary by lender. Most SA banks require 10-20% deposit.
Frequently Asked Questions
Is a deposit mandatory for a home loan?
Not always, but most SA banks require at least a 10% deposit. A larger deposit (20%+) gets you better interest rates and avoids bond registration fees on the full amount.
What is the minimum deposit for a home loan?
Most banks require 10% of the purchase price. First-time buyers may qualify for 100% bonds if they have excellent credit, but this is rare.
Can I use my pension as a deposit?
Yes, under Section 37C of the Pension Funds Act, you can access up to one-third of your pension fund as a lump sum for a home deposit.
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How the deposit interest calculator works
A deposit grows by compound interest: the interest earns interest. Future value = principal × (1 + rate ÷ compounds)^(compounds × years).
R50 000 at 8,5% compounded monthly for 5 years: (1 + 0,085 ÷ 12)^60 = 1.5273, so the balance is R76 365.
Simple interest over the same period gives R71 250 — R5 115 less. The gap grows sharply with time, which is the whole argument for leaving the money alone.
What changes the answer in South Africa
Interest is taxable in the depositor’s hands, but the first R23 800 of interest a year (R34 500 for those 65 and over) is exempt. Interest earned on a fixed deposit is usually credited monthly or at maturity, and early withdrawal typically forfeits part of the interest.
Common questions about the deposit interest calculator
How often should interest be compounded?
The more often the better, but the difference is small. Monthly compounding at 8,5% beats annual by roughly 0,2 percentage points of effective yield.
Is my interest taxed?
Yes, as income, but up to R23 800 a year is exempt (R34 500 if you are 65 or older). Banks report it to SARS.
What is the difference between nominal and effective rate?
Nominal is the quoted rate; effective includes compounding. 8,5% compounded monthly is 8,84% effective.
