Today we will focus on the Absa club account in South Africa.
We will first show you what a club account is.
What Is A Club Account
This is an account for group savings and investment.
Two or more people can pair up to form a club account to save or invest the funds in trusts to earn interests.
The account is suitable fr groups that want to work together to create wealth.
You will have to contribute to the account every month.
With this account, you get tips, investment options, and other helpful group-saving information.
Now that you understand the basics of the account, we will show you the requirements to apply for the account.
Requirements For This Account
Below are some of the important requirements to apply for an account:
- IDs of three elected group leaders who will act as signatories
- Proof of the three group leaders not older than three months.
You need to visit the nearest Absa branch to apply for the account.
These are the requirements to open an Absa club account in South Africa.
We will now show you exactly how the account works.
Absa Club Account
You need an initial deposit of R50 to open an account.
You have to be three or more people to open a club account.
NotifyMe alerts will be sent to up to three account signatories.
There are no monthly management fees required.
You are advised to register for internet banking to reduce some transaction fees.
With online banking, you can payout members anywhere anytime using EFT.
You have access to an electronic statement on online banking.
You can also track members’ contributions through online banking.
The benefits accrued are not for individual use but for the whole club.
The account interest rate is in tiers meaning that the higher your account balance, the higher interest earned.
For balance tiers between R0.01 to R39,999, the nominal interest is 0.05%, and from R50000 to R74,999, the nominal interest is 0.80%.
Savings of R75,000 to R99,999 attract a nominal interest of 0.55%, while those above R100000 have a nominal interest of 1.80%.
The account savings are available on 32 days’ notice, so you have to make a notice earlier to access the funds.
Account balances below R50 do not earn any interest.
You are eligible for an R2000 accidental death cover for up to 10 nominated members.
This is all you need to know about the Absa club account in South Africa.