Do you want to know more about the Absa future plan account in South Africa? Check out this article.
We will first briefly explain what a future plan account is.
What is a Future Plan Account
This is a contractual savings account that allows people to contribute towards a kid’s education.
Contributors to the account may be the parents, grandparents, friends, sponsors, and family.
The account carries no bank charges, and you benefit from nominal interest, bonus interest, and an additional Absa Education Interest Contribution of 3.5%.
Now that you understand what a future plan account is, we will now show you the requirements to open a future plan account.
Requirements For Future Account
To apply for the account, please provide the following:
- Birth certificate of the child
- A green-bar coded identity document
- Proof of residence such as a utility bill, lease or rental agreement, or a Telkom statement not older than three months.
- Valid foreign passports as proof of identity for the temporary and non-south African residents.
These are the basic requirements to open an Absa future plan account in South Africa.
Now that you know the requirements to qualify for the account, we will show you the key features of the account.
Absa Future Plan Account
The account offers clients a flexible and disciplined savings plan where holder accounts accumulate funds in a regular and disciplined manner.
You need a minimum of R100 to open this account.
You have to deposit at least R100 per month for at least three years.
With this account, you can elect to annually increase the contractual amount you contribute every month as a percentage or a rand value.
You can open more than one account for different children.
A client can nominate through their will that the account is for the child’s benefit, and if this is not clearly stipulated, the parent or the legal guardian will be the beneficiary until the child is of legal age.
Funds are available for withdrawal on a 32 days’ notice after the first three years.
After the first three years, withdrawals are allowed but limited to 2 per annum still with a 32-day notice.
If you fail to inform the bank of your specific instructions, the savings term will be systematically extended.
The longer the investment period, the higher the Absa interest rate for you.
These are the key features of the Absa future plan account in South Africa.
