Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Get in touch
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Greenbacks
- Explore Bank
- Accounts
- Everyday banking
- Kids accounts
- Youth banking
- Seniors accounts
- Private Clients
- Private Wealth
- Digital wallet
- See all accounts
- Premium banking
- Get help choosing
- Goal saving
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Discontinued accounts
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Kids accounts
- MiGoals4Kids
- Youth banking
- MiGoals Premium
- MiGoals
- MiGoals Plus
- Seniors accounts
- MiGoals Premium Senior
- MiGoals Plus
- Private Clients
- Pay-as-you-use
- Young Professionals
- Private Bundle and Private One
- Private Wealth
- Private Wealth Bundle
- Digital wallet
- MobiMoney
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Send and receive international payments
- Safe and secure incoming international payments
- Secure outgoing international payments
- To Africa
- Greenbacks
- Exclusive discounts
- FAQ
- How-to guides
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Explore Borrow
- Personal loans
- Loan consolidation
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Loan consolidation
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R32,000 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R32,000 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Business cover
- Secure investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Business cover
- Secure investments
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
We use cookies to improve your experience.
Repo rate changes
Understanding how they affect you.
What is a repo rate?
The South African Reserve Bank (SARB) lends money to South African banks at a rate known as the repo rate. Banks lend money to their clients at a rate called the prime interest rate.
The prime interest rate is linked to the repo rate. So, when the repo rate changes, the prime interest rate also changes.
Understanding the impact for you
When the repo rate increases, the following happens:
- Interest rates on your home or car loans will increase, which in turn will increase the monthly repayments.*
- Interest rates on your savings or investments will also change. Banks may offer higher interest rates for saving money, which is an advantage if you have extra money to save.
When the repo rate decreases, the opposite happens:
- Interest rates on your home or car loans will decrease, which in turn will decrease the monthly repayments.
- Interest rates on your savings or investments will also change. Banks may offer lower interest rates for saving money.
Why does SARB increase and decrease rates?
The repo rate is set by SARB’s Monetary Policy Committee. The rate changes so that inflation can stay within the 3% to 6% range in line with SARB’s mandate.
Reasons why the interest rates could change
1. Controlling inflation
- Inflation is when the prices of goods and services go up over time.
- Repo rate changes help to control inflation.
- When SARB believes that inflation is too high, it might increase the repo rate with the hopes that it will reduce borrowing and spending in the economy.
When people borrow less and spend less, it slows down inflation and helps to keep prices lower for everyone.
2. Stimulating the economy
- Repo rate changes can also encourage growth in the economy.
- When the repo rate is lowered, it becomes cheaper to borrow money.
- ·When we invest and spend more:
- companies grow;
- job opportunities are created; and
- it the economy is boosted.
Limit credit and maintain a healthy credit score
When the repo rate is increased, you have to do the following:
- Try not to borrow and use less credit.
- Pay your bills on time.
- Manage your debt responsibly.
A good credit score can help you secure better interest rates in the future.
Try these 2 useful features on the Money app:
- My credit score to check your credit score for free.
- My Smart Money to help you track your spending.
Types of interest
1. Variable interest rate
- Variable interest rates change with the prime rate.
- ·When the prime rate is increased, the interest rate on your loans will also change and your repayment amount will increase.
2. Fixed interest rate*
A fixed interest rate is a rate that does not change during an agreed period.
- When you borrow money on a fixed interest rate, the rate stays the same throughout this period and your monthly payments stay the same.
- Fixed interest rates provide stability and protection against potential interest rate changes. They are commonly used in home and car loans, and some investments.
- Normally, fixed interest rates are initially higher than variable interest rates.
Remember to be cautious when fixing your interest rate. The best time to choose a fixed interest rate is when interest rates are low, and you believe they will increase.