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Thread: ABSA Savings account interest rate

  1. #1

    Thumbs down ABSA Savings account interest rate

    I’m normally not the most astute person when it comes to checking monthly bank charges and statements.

    Well the other day I got a call from ABSA asking me if I would like to change my account to one which offers a flat rate of charges for certain transactions, rather than a charge per transaction. To assess the viability of this I checked my monthly charges, and found that 66% of my costs incurred was due to atm withdrawals. So lesson learnt here is to rather utilise credit card instead of cash.

    Don’t you find it rather insolent that the banks charge us to use internet banking, thereby reducing their overheads?

    Anyway, I digress.

    The reason for the post, is that whilst in discussion with the bank, they asked me if I would like to transfer funds (not a lot) from my savings account to a “money builder account” where I could earn a 4.2% interest rate on savings as long as I had more than R60k in the account. This was because the savings accounts incur a zero % interest rate. I was dumbstruck. I naturally assumed a savings account would earn the highest rate of return – it’s savings after all! Well some other ABSA savings account holders I queried, were also surprised to learn that there is no interest on savings accounts. Good marketing ABSA, you got me on that one…

    Doesn’t it irk you that ABSA charges you an annual fee to use your credit card, whilst they make money every time you use it?

    So, lessons learnt:

    Move funds out of ABSA savings accounts to an interest bearing account. In my case this will be into my Virgin Money account, where I earn 3.5% interest irrespective of the (positive) balance.

    Ditch ABSA credit card in favour of a credit card that doesn’t cost you money – in my case this will be a virgin credit card.

  2. #2
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    Why don't you open yourself a Capitec account? 5.75% irrespective of balance. 7% for balances less thatn 10K and you can open something like 8 linked accounts and spread your spare cash across them.
    Minimal charges and really easy admin
    When did ignorance become a point of view ?.

  3. #3

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    Now this is why I like this forum - lots of knowledgeable folk about - thanks McSack, great advice. I think I might just do this, and close my useless ABSA accounts!

  4. #4
    Super Grandmaster Archer's Avatar
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    Quote Originally Posted by McSack View Post
    Why don't you open yourself a Capitec account? 5.75% irrespective of balance. 7% for balances less thatn 10K and you can open something like 8 linked accounts and spread your spare cash across them.
    Minimal charges and really easy admin
    Love those contradictions.

    Anyway, @OP there are ABSA products where you pay R0 for CC transactions, R0 for EFT, R0 for debit orders. The so called savings accounts though are utterly useless, unless its that one where you need like R25k iirc and you get prime minus 3% (something like that)

  5. #5
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    Quote Originally Posted by Archer View Post
    Love those contradictions.

    yeah ... sorry ... had a rather large red wine evening and still trying to wake up. Greasy breakfast and triple espresso hasn't even made a dent in this monster.

    anyway what I meant was that interest rate is 7% on account balances less than 10K and 5.75% as soon as you exceed that limit. Strange but no-one at the bank was able to explain why they would have a policy that effectively discourages you from putting large amounts of money into their savings accounts
    When did ignorance become a point of view ?.

  6. #6

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    Archer, in my detailed banking discussions yesterday with an ABSA consultant, these were not mentioned at all. Maybe they were trying to punt their particular package, but they don't seem to advertise these other accounts much. I suppose why mention it if theyre fleecing the public for a fat profilt anyway...

    5.75% sounds like a good deal at Capitec though. Will need to check out the charges structure carefully 1st of course.

  7. #7

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    What McSack said. Capitec is decent. Have a few fixed deposits with them too. Also, their share price has grown quite alot over the last few years.

  8. #8

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    Yeah, also the last time I checked I you also pay R7.50/month just to have a savings account with ABSA, just for leaving money in there. So, it COSTS YOU for keeping your money, and allowing them to use your money to make them money. They win either way.

    @McSack - Thanks for the info, I never knew Capitec were so good with their interest rates!!! No wonder their share price has done what its done over the past year. Over 100% increase....says something huh.

  9. #9

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    Yea, markface, mine was R10 per account last month...

    I'v been having a look at capitec, and so far I like what I see. Theres a R7 flat fee for using another banks ATM. At the moment I pay R6.50 mostly for using ABSA's OWN ATM!
    Internet banking is free per month - ABSA charges around R45 pm...
    Internet banking charges are less, etc etc - I think I'm gonna see these people and start winding down my ABSA accounts.

  10. #10
    Super Grandmaster Archer's Avatar
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    Quote Originally Posted by Tosser View Post
    Yea, markface, mine was R10 per account last month...

    I'v been having a look at capitec, and so far I like what I see. Theres a R7 flat fee for using another banks ATM. At the moment I pay R6.50 mostly for using ABSA's OWN ATM!
    Internet banking is free per month - ABSA charges around R45 pm...
    Internet banking charges are less, etc etc - I think I'm gonna see these people and start winding down my ABSA accounts.
    R21.95 according to their website...
    Or free if you are on one of their packages. Cheapest I could find was R99 pm and caters for 25 free transactions.

  11. #11

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    Odd, I'm definitely charged this, maybe they need to update their website, or maybe it's account type specific. Figuring out their fee structure is like trying to unravell a bowl of wet spaghetti.

  12. #12
    Super Grandmaster Archer's Avatar
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    Quote Originally Posted by Tosser View Post
    Odd, I'm definitely charged this, maybe they need to update their website, or maybe it's account type specific. Figuring out their fee structure is like trying to unravell a bowl of wet spaghetti.
    Agreed!

  13. #13
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    Just got some ABSASpam :

    For R139 a month:
    1. A fully transactional current account with 35 free transactions per month
    2. A prestigious Absa Gold Credit Card with no monthly service fee
    3. A Gold debit or cheque card for convenient transactions and purchases
    4. Internet, Cellphone, and Telephone Banking at no monthly subscription
    5. Free NotifyMe service that alerts you when there is activity on your account
    6. An optional overdraft with the first R1 000 interest-free and no ledger fees

    I was paying over R170 a month to them in "fee's" and when I asked for a better deal they failed to find one.
    I am now with Capitec and in the past 4 months have paid Capitec ~R87, not per month, that's the total I have been charged for exactly the same transactions I used to do on ABSA over the past 4 months.

    And, yes, you can "move" your Virgin Credit card over to Capitec.

    ABSA fail.
    Perhaps it's time we took a contract out on Murphy.

  14. #14

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    Quote Originally Posted by davemc View Post
    And, yes, you can "move" your Virgin Credit card over to Capitec.
    How would that work?

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