Banking staff benefits

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Mojo32

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Anyone working for the banks can confirm the benefits one receives as a banking employee? What's the interest rates you currently paying on bonds cars etc? Does it vary across the banks? Who gives the best rate to their staff?
 
Prime minus 2-2.5 that’s the standard. I think bank of China gives prime minus 3 though.
 
This is how it happens:

Lil' Mo goes and works for the bank. The bank gives him a prime -2% staff rate on debt.

Lil' Mo uses this advantage and instead of buying a house he could've afford and pay less for it he goes and buys a bigger house at the max he can afford along with a shiny new GTi.

Three years later my man Mo is tired of the bank's bureaucratic nonsense and sends out his cv. Companies respond with offers but it never quite matches that of the bank's and you'll not be able to afford your house/car if you move.

The search continues but unbeknownst to you the bank has trapped you and you are stuck.
 
Regardless, pick the bank that's is best to work with. From my experience in SA I would avoid ABSA and probably go to Standard Bank.

*this now after I have exhausted all my other options short of flipping burgers at McDonalds and specifically regarding IT.
 
What happens when u Resign? Do you lose the benefits I assume? I know of someone who no longer works for Absa but still pays banking rates on his mortage.
 
RedViking said:
I don't know why anyone would base their employment on the best deal on debt they can get. Meh!
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It's not the first consideration, but it is a legitimate concern. After all, one works for a salary. Buying a house is for most the single largest purchase in their lives, and in most cases most people have to take a twenty or thirty year loan. Access to finance at a good interest rate is a very real and legitimate factor when looking at the choices in the market. @Mojo32 is perfectly right to consider this.
 
I know if you hit 60.... and have a bond with fnb... you keep that rate when you go on pension
 
Arthur said:
It's not the first consideration, but it is a legitimate concern. After all, one works for a salary. Buying a house is for most the single largest purchase in their lives, and in most cases most people have to take a twenty or thirty year loan. Access to finance at a good interest rate is a very real and legitimate factor when looking at the choices in the market. @Mojo32 is perfectly right to consider this.
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Sure, but many get prime -2% anyway without needing to work there.
 
Mojo32 said:
Anyone working for the banks can confirm the benefits one receives as a banking employee? What's the interest rates you currently paying on bonds cars etc? Does it vary across the banks? Who gives the best rate to their staff?
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Not a debt benefit, but if you work for a hedge fund, you may eventually be allowed to invest in it. (Beware that if it goes belly up, you may lose both your savings and job at the same time).
 
Hamster said:
This is how it happens:

Lil' Mo goes and works for the bank. The bank gives him a prime -2% staff rate on debt.

Lil' Mo uses this advantage and instead of buying a house he could've afford and pay less for it he goes and buys a bigger house at the max he can afford along with a shiny new GTi.

Three years later my man Mo is tired of the bank's bureaucratic nonsense and sends out his cv. Companies respond with offers but it never quite matches that of the bank's and you'll not be able to afford your house/car if you move.

The search continues but unbeknownst to you the bank has trapped you and you are stuck.
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Very true
 
Golden handcuffs only get put on if you want..

With the turmoil in country these days I don’t think the standard benefits will entice anyone skilled to put on the handcuffs tbh.
 
The maximum the banks can offer staff for home loans is prime -2.5 as that is what the law allows via the Fringe benefit tax limit (FBT). Used to be more but SARS found it a bit too much and a nifty way to get benefits without paying tax or something.

Same rate applies for cars I believe but have never used that one. I did utilize the home loan though and it saved me a fair bit on interest.
 
I knew a guy who used to work for a bank. He would always apply for the max home loan and even got a 2nd bond for 'renovations'.
These bonds he got at a very good staff rate (assume like prime - 2.5%).
He would then use these funds in his personal capacity for investing.
Risky business, but he made it work.
 
Hi all. Lets say Mr Smith does not work in banking. He has his home loan and car finance with the red bank and then he join as an employee at the yellow bank. Will Mr Smith be able to move his home and car finance to the yellow bank with the reduced interest rate(prime minus x amount). Thanks in advance
 
sewash14 said:
Hi all. Lets say Mr Smith does not work in banking. He has his home loan and car finance with the red bank and then he join as an employee at the yellow bank. Will Mr Smith be able to move his home and car finance to the yellow bank with the reduced interest rate(prime minus x amount). Thanks in advance
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Yes but you will pay bond registration fees to register a new bond. You'll have to work out whether the interest saving outweighs the cost of registering a new bond...
 
sewash14 said:
Hi all. Lets say Mr Smith does not work in banking. He has his home loan and car finance with the red bank and then he join as an employee at the yellow bank. Will Mr Smith be able to move his home and car finance to the yellow bank with the reduced interest rate(prime minus x amount). Thanks in advance
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Yellow bank?
 
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