When comparing South African savings accounts, it helps to separate two questions: how much interest could the account earn, and what protections might apply if the bank fails? South Africa has a deposit insurance arrangement run by the Corporation for Deposit Insurance (CODI), which forms part of the South African Reserve Bank framework.

What does CODI cover?

CODI says eligible depositors at qualifying banks receive cover of up to R100,000 per depositor per bank for qualifying deposits. This total includes both the principal and accrued interest. Eligible products commonly include transactional, savings, term and notice deposit accounts where the balance is guaranteed and repayable at par. Not every investment is a qualifying deposit.

Is the limit per account or per bank?

It is per qualifying depositor per bank, not per account. Imagine you hold R70,000 in one savings account and R50,000 in another qualifying deposit at the same bank. Your combined R120,000 exceeds the R100,000 insured limit by R20,000. Cover at a different qualifying bank is considered separately under CODI’s rules.

What the limit does not mean

  • It does not mean that a bank account guarantees a particular interest rate.
  • It does not cover every type of investment sold through a bank. Market investments and retirement products may be excluded.
  • It is protection for qualifying deposits in a bank failure or resolution scenario, not insurance against every scam or unauthorised card payment.
  • If the combined qualifying balance exceeds R100,000 at one bank, the excess is not automatically protected by CODI.

What about stokvel accounts?

CODI explains that qualifying stokvel or informal beneficiary accounts are generally covered up to R100,000 for combined qualifying balances held in the stokvel’s name at a bank, not R100,000 automatically for each member. The legal account structure matters. Ask your bank how it records the account and coverage.

Checklist before opening a savings account

  • Verify that the institution is a registered bank or qualifying member and that your deposit product is covered.
  • Ask whether the quoted interest rate is fixed, variable, promotional or conditional.
  • Check withdrawal notice periods, monthly fees, minimum balances and any penalty for early access.
  • Separate emergency cash you may need soon from investments where capital fluctuates.
  • For balances exceeding R100,000, understand the protection limits and concentration risk.

Compare splitting deposits across qualifying banks

Imagine a saver holds a qualifying R85,000 deposit with Bank A and a qualifying R40,000 deposit with Bank B. Because CODI cover is calculated separately per qualifying depositor per member bank, the illustrative balances would each be within the R100,000 limit. If instead both deposits belonged to the same bank, the combined R125,000 would exceed that bank-level limit by R25,000. Actual cover depends on the depositor, the bank and the eligibility of each product.

  • Confirm that the bank is a CODI member rather than relying only on an advertisement.
  • Check whether your product is a qualifying deposit with capital repayable at par, not a unit trust or another investment.
  • Add together covered balances and accrued interest at the same bank when estimating your limit.
  • Compare fees, access, penalties and interest separately; deposit insurance is not a promised return.

CODI is not scam or card-fraud insurance

The R100,000 scheme is designed for qualifying deposits in a bank failure or resolution situation. It is not a substitute for protecting banking passwords, challenging unauthorised payments or checking whether an investment marketed by a bank is covered. A product sold inside a bank can still be an investment rather than an eligible deposit.

Use the South African Reserve Bank CODI FAQ and member bank list for the latest eligibility details: https://www.resbank.co.za/en/home/what-we-do/Deposit-insurance/CODI-Frequently-Asked-Questions.

Official source and related reading

Primary source: South African Reserve Bank, CODI Frequently Asked Questions — https://www.resbank.co.za/en/home/what-we-do/Deposit-insurance/CODI-Frequently-Asked-Questions

Further reading: How to Build a Monthly Budget — monthly-budget-south-africa.html; TFSA Limits for 2026/27 — tfsa-limits-south-africa-2026.html.