Are you interested to know about the Absa investment account in South Africa? Then check out this guide.
An investment account gives you an elaborate investment plan to secure your current and future financial needs.
We will first show you the requirements to open an investment account.
Requirements For This Absa Account
Below are the primary requirements to qualify for the account:
- A valid South African ID or smart card or a passport for the foreigners
- Proof of a valid address not older than three (3) months
- You need a minimum investment of R1000 for recurring investments and R50,000 for lump sum investment
These are the basic requirements to qualify for an Absa investment account in South Africa.
We will now show you exactly how the account works.
Absa Investment Account
The accounts provide you with a great way to save for a specific purpose while enjoying greater benefits.
You have control over features such as investment terms, contributions, portfolio adjustments, and access to your money.
You are notified of your portfolio holdings, values, and transactions with the account, and transparency is practiced.
You control how your account is built up and have a variety of investment plans to pick from.
You have access to a wide range of collective investment schemes offered by various companies.
There are various unit trust funds to choose from for an investment account.
Medium and long-term investors earn more interest than short-term investors.
The Investment account can be used as collateral for a loan at Absa.
This is how the Absa investment account works in South Africa.
Now that you understand how the account works, we will show you the fees and interest rates of the account.
What Is The Fee And Interest Rates
The rates and interests of the account depend on the unit trust fund you choose to invest in.
There is no initial administration fee for the lump sum or recurring investment accounts.
Interests, foreign dividends, and capital gains from these accounts are taxable in the hands of the account holder at the applicable tax rates.
Local dividends are subject to withholding tax but with certain exemptions or reduced rates.
The annual service fee is calculated on the market value of nits held in the trust fund.
0.75% administration fee is charged on the first R250, 000 annual investment and o.50% for the next R250,000 annual investment.
0.2255% administration fee is charged for annual investments of over R750, 000.
This is all you need to know about the Absa investment account in South Africa.