How Interest Accumulates
GoTyme Bank applies a nominal annual interest rate to your deposited principal. The rate is fixed from the moment you open the deposit and does not change during the selected term.
Interest accumulates daily based on the annual rate, but it is not distributed until the end of the term. This means you cannot access partial interest payments while your deposit is active.
Calculation example:
- Principal: R50,000
- Rate: 8.75% per annum (nominal)
- Term: 12 months
- Interest earned: R50,000 × 8.75% = R4,375
- Total received at maturity: R54,375
For shorter terms:
- R50,000 at 8.75% for 6 months = approximately R2,188 in interest
- R50,000 at 8.75% for 3 months = approximately R1,094 in interest
(Actual shorter-term rates may differ slightly; the rate is confirmed within the app at the time of opening.)
When and How Funds Are Paid
At the end of your selected term (maturity date), GoTyme Bank automatically credits your principal plus accrued interest to your GoTyme Bank current or savings account. No action is required on your part — the transfer is automatic.
You will receive:
- An in-app notification informing you that your fixed deposit has matured
- The full amount (principal + interest) deposited into your linked GoTyme account
- The funds become immediately available for spending, transferring, or reinvestment
Reinvestment Option
At maturity, you can choose to:
- Withdraw the full amount to your GoTyme account (happens automatically)
- Reinvest by opening a new fixed deposit with the matured funds — this can be done immediately from within the app once the funds have been credited
GoTyme does not currently offer an automatic rollover feature — you must actively open a new deposit if you wish to reinvest.
Nominal vs. Effective Annual Rate
GoTyme Bank communicates the nominal annual interest rate for its fixed deposits. Here is the difference:
| Rate Type | Definition | Example |
|---|---|---|
| Nominal rate | The stated annual rate, applied linearly over the term | 8.75% p.a. on R10,000 = R875 over 12 months |
| Effective annual rate (EAR) | The compounded return if you were to reinvest interest | Slightly above 8.75% if reinvested each year |
| Interest at maturity | The actual rand value you receive at term end (no compounding within the term) | R875 on R10,000 at 12 months |
For GoTyme's single-term product, the nominal rate and the at-maturity return are aligned — there is no compounding within a single term.
Tax Considerations
Interest earned on a fixed deposit in South Africa is subject to income tax as per SARS (South African Revenue Service) rules. However, every South African taxpayer has an annual interest exemption:
- Under 65 years: R23,800 per year exempt from income tax
- 65 years and older: R34,500 per year exempt from income tax
Interest earned above these thresholds must be declared and taxed at your marginal income tax rate. GoTyme Bank will issue an IT3(b) tax certificate reflecting interest earned during the tax year, which you or your tax practitioner will use when completing your annual SARS tax return.
Frequently Asked Questions — Interest Payment
Q: Can I receive monthly interest payments from a GoTyme fixed deposit? No. GoTyme Bank pays all interest at maturity (end of term). If monthly interest income is a requirement, consider Nedbank or African Bank fixed deposits, which offer monthly payment options.
Q: Will the interest be automatically added to my GoTyme account? Yes. At maturity, the full amount (principal + interest) is automatically credited to your linked GoTyme Bank account without any action needed from you.
Q: Does GoTyme issue a tax certificate for interest earned? Yes. You will receive an IT3(b) certificate from GoTyme Bank reflecting the interest earned, which is required for your SARS income tax return.
Q: What if the maturity date falls on a weekend or public holiday? GoTyme Bank is a digital bank and typically processes credits electronically. Consult GoTyme's terms and conditions or contact support at 0860 999 119 for specific maturity date handling.