Even P1,000 can get you started. It’s not flashy, but it’s safe — and right now, it pays to be boring in Botswana.
Banks want your cash, and they are paying more for it.
Who’s Paying What?
Here are the top deposit rates in Botswana as of May 2025, tracked by the Investor Mail:
- Bank Gaborone: Up to 11.05% for a 12-month fixed deposit, suggesting that someone who saves P10,000 with them earns P1,100 in a year.
- First Capital Bank: Up to 6.50% for the same period
- Big banks: Some offer as little as 2% for similar deposits.
Most banks only require a P1,000 minimum to open this fixed deposit, which means even small savers can benefit.
Source of information: Bank Gaborone, First Capital, BBS
The More You Deposit, The More You Earn
Some banks even sweeten the deal if deposits are in larger amounts.
- First Capital Bank said it offers better rates for deposits over P100,000
- Stanbic Bank, the country’s third profitable bank, is offering about 7% on P100,000.
Cash Deposits: Parking Spots
Cash doesn’t feel exciting and according to respectable economist Dr. Keith Jefferis, it is the last resort of investment.
There’s no volatility and no boardroom drama, making it one of the safest ways to grow your money. It usually earns lower interest.
“Cash is not an investment. It’s a parking spot,” believes Ray Dalio, an American billionaire.
Cash isn’t where you grow your wealth long-term, but it’s where you protect it while waiting for better opportunities. These high deposit rates are like being paid to park safely, not forever, but for now.
It’s like a donkey on a farm:
- Slow,
- Steady, and
- Reliable.
It may not win a race, but it will get you home.
Is cash still King? Everyone’s Competing For Pula
It’s not just banks that want cash. Even the government is borrowing more than usual, taking up available cash in the system.
Against this background, big investors like pension funds, with large amounts of money, are lending out money to banks at a higher rate.
That has left banks, especially the smaller ones, scrambling for sources of funding, like your everyday deposit.
So what do they do?
They offer better interest rates to get you in the door.
Think of it like this:
- Banks “buy” money from you (through deposits)
- Then “sell” it as loans to borrowers, charging interest
- The difference is their profit
Just like a supermarket facing supplier price hikes, banks are paying more to restock their shelves. In this case, to attract your money.
Joel Greenblatt, an American academic, hedge fund manager, investor, and writer, said:
“Don’t overlook boring investments. Boring can be beautiful.”
