Get the lowdown on Dynamic Interest Rates. Here's how it works


Did you know that understanding your interest rates can put money in your pocket? In fact, you have a lot more control over how much money you can save than you think. Especially when you can take advantage of Discovery Bank's Dynamic Interest Rates.

If your financial goal for the future is to save more, spend less and have more money in the bank, then it's time to understand and take advantage of your Dynamic Interest Rates.

Why interest rates are important

Interest rates affect everyone. Whether you're an investor, a working mom or a new graduate, understanding interest rates helps you make better decisions with your money.

Definition: Interest rate

The percentage that a bank charges or pays out on the total amount you borrow or save.

When you borrow money, the interest rate increases the total amount you owe the bank.

For example, if you borrow R10,000 from the bank at a fixed interest rate of 5% for 5 years, the total amount you pay back will be R12,500.

Takeaway: You want lower interest rates when you're borrowing money.

When you save or invest money in an account that gives you interest on your savings, the interest rate increases the total amount you save over the investment period.

For example, if you put R10,000 in a savings account at 5% interest for 5 years, the total amount you save is R12,500.

Takeaway: You want higher interest rates when you're saving money.

It's important to understand interest rates so you can work them in your favour when you're borrowing or saving money.

What are Dynamic Interest Rates?

So, if doing your research and staying abreast of interest rates is step one, what's step two?

Joining a bank that lets you control your interest rates with your healthy banking behaviour.

Discovery Bank clients can benefit from personalised interest rates through Vitality Money. Discovery Bank is the only bank in South Africa that offers you Dynamic Interest Rates, allowing you to save more and pay less when you manage your money well.

How do Dynamic Interest Rates work?

When you improve your Vitality Money status, you can get better interest rates on the money you save or borrow. In fact, you even earn interest on the positive balance in your everyday transaction account!

With Dynamic Interest Rates, you can:

  • Get up to 3.75% on positive balances in your transaction and credit card accounts
  • Get up to 4.5% on your Demand Savings Accounts
  • Get up to 4.85% on 24-hour Notice Savings Accounts
  • Pay up to 6.75% less on your borrowing rate.
How to view your personalised Dynamic Interest Rates

You can view and track your Dynamic Interest Rates on the Discovery Bank app:

  1. Log in to your Discovery Bank app
  2. Go to your Shared-value rewards stack and scroll down to the Dynamic Interest Rates tile.
  3. You can tap each component for more information on your:
    • Vitality Money status > improve your status to improve your Dynamic Interest Rates
    • Vitality Money rate > your personalised Dynamic Interest Rate
    • Vitality Money rebate percentage > the amount of money you will get back every month
    • Vitality Money boost percentage > the percentage by which your interest rate on your savings or everyday balances will be boosted every month
    • Base rate percentage > the overall percentage on your credit or savings before your Vitality Money rebate or boost is applied.
How to improve your Dynamic Interest Rates with Vitality Money

You can control your interest rates when you manage your money well, and Vitality Money is our behavioural change programme that shows you exactly how to do it.

Financial health is not about how much you earn, but what you do with the money you have. Vitality Money helps you to get financially healthier across five key areas:

  1. Spending less than you earn
  2. Saving regularly
  3. Having insurance against unexpected events
  4. Paying off property as soon as you can
  5. Investing for retirement and the future

By improving these five behaviours, you can earn Vitality Money points. The total number of Vitality Money points you earn determines your Vitality Money status, which then determines your rewards and Dynamic Interest Rates.

Start making the most of your personalised interest rates today. Set up Vitality Money on your Discovery Bank app and complete the Vitality Money Assessment to get rewarded for managing your money well.

That is shared-value banking.

This article is meant only as information and should not be taken as financial advice. For tailored advice, please contact your financial adviser.

Travel is more affordable   than ever with Vitality Travel

Get between 10% and 75% off flights when you book your local or international flights with Vitality Travel. Then, get up to 25% off accommodation from our partners across South Africa including hotels, B&Bs, luxury resorts, thrilling game lodges and more, for all Vitality Health members and qualifying Discovery Bank clients. Enjoy 15% off your next trip when you book exclusive holiday packages. Plus, save up to 25% on car hire.

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