Today we will discuss the Absa group saving account in South Africa.
What Is A Group Saving Account
This is where two or more people pair up to form an account to save or invest the funds in trusts to earn interests.
The account is suitable for groups that want to work together to create wealth.
A group savings account could be a club account or a joint account.
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 Group Account
Below are some of the important requirements to apply for the group saving account?
- IDs of group members who will act as signatories
- Proof of residence for the signatories not older than three months.
- Should be 18 years and above
You need to visit the nearest Absa branch to apply for the account.
These are the requirements to open an Absa group saving account in South Africa.
Now that you the requirements to open the account we will show you exactly how the account works.
Absa Group Saving Account
You have to be three or more people to open a group saving account and need an initial deposit of R50.
NotifyMe alerts will be sent to up to three account signatories every month.
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 how the Absa group saving account works in South Africa.
