Neilhopwood
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I have had this account now for over 3 years (read had my bond for over 3 years) and the original amount owning on my bond has not changed one cent.
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Dear FNB please explain how my ABSA One account works, because ABSA cannot.
- Thread starter Neilhopwood
- Start date
ToxicBunny
Oi! Leave me out of this...
Come again?
satanboy
Psychonaut seven
The interest rate increased but your payments haven't.
The_Unbeliever
Honorary Master
Did you pay the full monthly instalments when due? Or did you skipped some of them?
The account works like a standard overdraft, you have full access to the full amount, so if you use it all, the balance stays the same.
If you owe R2mil - and your monthly payment is R20,000, of which R15,000 is interest - and you go and spend R5,000 -you're back at R2mil.
Why did you sign up if you didn't know how it works?
If you owe R2mil - and your monthly payment is R20,000, of which R15,000 is interest - and you go and spend R5,000 -you're back at R2mil.
Why did you sign up if you didn't know how it works?
+1
If you borrow R500k, you will be paying back interest on the R500k for the first few years (unsure how many years). However, your 500k should decrease depending on the monthly repayment. So if you repay R2000, 10-20% of that payment actually reduces the 500k (thats why paying in more than your installment reduces the number of years you repay for, since you chip away at the R500k and the interest gets lower and lower the more you do that)
With a one account, you can use up to the full bond amount.
So lets say you owe R500k. The installment is (example) R2000. we will forget about interest for now.
Your salary gets paid into the account, reducing the amount to R490k (assuming you get R10k a month). Part of that 10k is your repayment, 2k. If you then use the ENTIRE R10k to pay for stuff, you still owe R500k and haven't reduced your bond at all. You basically keep borrowing against your property and will never pay it off because you use everything you can each month.
The_Unbeliever
Honorary Master
Ahhhh, I see what possibly could have happened...
So glad I can't do that to my bond. I keep on paying in... which's good. Can't withdraw at all...
So glad I can't do that to my bond. I keep on paying in... which's good. Can't withdraw at all...
It seems like a good idea at the time, but its just to easy to use the money.
The accounts themselves are separate, and the one is offset against the other, so its not really "one" account.
member2204
Senior Member
On a ONE Account, there's also a bond reduction amount that goes off every month. Your facility therefore reduces every month.
With ABSA? Mine did not reduce by 1c, the amount available to me was a constant 1.6m
satanboy
Psychonaut seven
No, it doesn't.
I think that might be with FNB, but not ABSA. Or that it's an option you can choose to have on there.
One very important thing people don't realize is to keep a very strict budget. A one account can be an awesome thing, but you need to still ear-mark money for savings to be used in case of emergency and in a dire straight/need, can then use part of your bond without having to go through special clearance/applications etc.
You can reduce your bond term by insane amounts...IF you stick with a budget and keep a close eye on things.
It's very easy to fall into debt, I myself have been recklessly spending the last few months and need to reign it in else I'll face quite a steep hill to climb back out of the cycle
member2204
Senior Member
Definitely with mine (FNB ONE Account). There's an interest amount (INT ON DEBIT BALANCE) and a limit reduction (LIMIT REDUCTION) every month.
I don't know what ABSA have.
Edit: I double checked on my previous statements and the 'Facility Amount' definitely reduces month on month by the 'Limit Reduction' amount.
Last edited:
Ook - what the heck happened to your English there?
An access facility (but separate to your day-to-day account) is very useful. I put some spare cash in there, as well as paying a bit extra on my bond each month. If I need it in an emergency or for a big purchase, I transfer.
Sinbad
Honorary Master
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The one account is a perpetual account - therefore the limit does not decrease.
When I had one, there were two separate accounts involved - a transactional and a credit account. There was the option to do auto-transfers from one to the other based on balances (which I did not take). Did you?
When I had one, there were two separate accounts involved - a transactional and a credit account. There was the option to do auto-transfers from one to the other based on balances (which I did not take). Did you?
member2204
Senior Member
The One Account is a consolidated account designed to streamline your lifetime borrowing and transactional needs into a single facility secured by your home. Your facility is your borrowing limit. This does away with the need for separate cheque and home loan account thus replacing them with a One Account.
The overdraft is reduced monthly over the term of the facility. It's convenient and more affordable than having to manage and pay fees on multiple accounts.
Link
The overdraft is reduced monthly over the term of the facility. It's convenient and more affordable than having to manage and pay fees on multiple accounts.
Link