FNB access bond and overpayments

Ri@@d said:
how does one get the bank to do this ? (surely some default payment is required? )

I have a monthly debit, I then put in a little extra as the month goes on
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This have nothing todo with a debit order.

You are just putting more in. Its called a flexi bond / facility.
 
JacquesD said:
What happens when you pay extra into your access bond and the total amount due becomes zero before the end of your term? Does the bond just remain with zero month payment required (other than a fee) or does FNB close it automatically?
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Your monthly service fee would still go off

Interest charged would be R0

Never ever close a bond. You paid to get that facility!

I bought 3 apartments with 1 bond! Start to think out of the box
 
Ri@@d said:
Benefits of this ? correct me if i am wrong...as far as I understand, bond is compounded daily.

if the monthly repayment is 10k , paying 2.5k weekly will save you a decent amount at the end of the term.
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Explain.
 
When a bond is registered, the bank usually requests for the first payment in 30-45 days' time. Many people do not realise that by paying it just 30 days early, there are also savings.

On a bond of R1,000,000 at 6%, the monthly payment would be roughly R7,164. If just this first payment was early, and all others paid on time, it results in savings of R12,319 over the period of the loan.
 
zerocool2009 said:
Your monthly service fee would still go off

Interest charged would be R0

Never ever close a bond. You paid to get that facility!

I bought 3 apartments with 1 bond! Start to think out of the box
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what about after the bond term ? ie if i have a 20 year bond, paid it off in 10 years, but kept it open, what happens after the full 20 years, is it then forced to close ?
Surely after the 20 years i would not be able to withdraw anything since then i would be "behind" in payments as the bond was supposed to be paid up by 20 years ?
 
Claymore said:
We use it as a piggy bank. Stick extra money in every month, and if we need money for home maintenance, etc., we pull it out as needed.
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I kept it open for the same reason but I really really dislike borrowing anything now after we paid it off (except credit card for less than 55 days). That feeling of no debt is quite decent.
 
Zuner said:
what about after the bond term ? ie if i have a 20 year bond, paid it off in 10 years, but kept it open, what happens after the full 20 years, is it then forced to close ?
Surely after the 20 years i would not be able to withdraw anything since then i would be "behind" in payments as the bond was supposed to be paid up by 20 years ?
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You can keep it open, and use it, as long as you pay the R60 odd monthly fee to the bank.
If you decide to withdraw the savings after a period of time, the bank may send its evaluator out to check the property out and make sure that it's still there and reasonably well maintained.
 
Zuner said:
what about after the bond term ? ie if i have a 20 year bond, paid it off in 10 years, but kept it open, what happens after the full 20 years, is it then forced to close ?
Surely after the 20 years i would not be able to withdraw anything since then i would be "behind" in payments as the bond was supposed to be paid up by 20 years ?
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I reset my bond back to 20 years!
 
Hey I'm a newbie when it comes to this, I'm moving some funds into my FNB flexi bond and trying to just figure out how it works exactly.

I transferred money now for the first time but the available balance is less than the amount I transferred, is this because I first covered the interest and fees and then the remaining amount becomes available? The difference seems to correlate with that but I just want to make sure.
 
DrJohnZoidberg said:
Hey I'm a newbie when it comes to this, I'm moving some funds into my FNB flexi bond and trying to just figure out how it works exactly.

I transferred money now for the first time but the available balance is less than the amount I transferred, is this because I first covered the interest and fees and then the remaining amount becomes available? The difference seems to correlate with that but I just want to make sure.
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If you prepay your bond, it has nothing to do with fees or interest. Your balance goes down and your available increase
 
DrJohnZoidberg said:
Hey I'm a newbie when it comes to this, I'm moving some funds into my FNB flexi bond and trying to just figure out how it works exactly.

I transferred money now for the first time but the available balance is less than the amount I transferred, is this because I first covered the interest and fees and then the remaining amount becomes available? The difference seems to correlate with that but I just want to make sure.
Click to expand...

I suspect it is the bond initiation fee that was subtracted from your transferred amount. Same thing occurred when I transferred funds into my bond the first time.
 
DrJohnZoidberg said:
Hey I'm a newbie when it comes to this, I'm moving some funds into my FNB flexi bond and trying to just figure out how it works exactly.

I transferred money now for the first time but the available balance is less than the amount I transferred, is this because I first covered the interest and fees and then the remaining amount becomes available? The difference seems to correlate with that but I just want to make sure.
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Is it a new bond as DawieZA asks ?
 
DawieZA said:
I suspect it is the bond initiation fee that was subtracted from your transferred amount. Same thing occurred when I transferred funds into my bond the first time.
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zerocool2009 said:
Is it a new bond as DawieZA asks ?
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Hmm, it's new but not that new, I've already had the first month's instalment was last month.

I'm just going to see if somebody will eventually get back to me on secure chat to find out exactly what the story is then.
 
DrJohnZoidberg said:
Hmm, it's new but not that new, I've already had the first month's instalment was last month.

I'm just going to see if somebody will eventually get back to me on secure chat to find out exactly what the story is then.
Click to expand...

If the bond goes off tonight, interest would be added by default. So look at your bond (transactions), do you see any interest entry for today ?
 
DrJohnZoidberg said:
Hey I'm a newbie when it comes to this, I'm moving some funds into my FNB flexi bond and trying to just figure out how it works exactly.

I transferred money now for the first time but the available balance is less than the amount I transferred, is this because I first covered the interest and fees and then the remaining amount becomes available? The difference seems to correlate with that but I just want to make sure.
Click to expand...
Alls I know is, I've had/ have bonds with ABSA, Standard Bank and FNB and FNB is the worst in terms of how they show this stuff. It goes up, down, goes to R0, it's messy.
ABSA is straight forward - you put in R10k extra, you see R10k available.
 
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