FNB Flexi Bond / Overdraft Facility

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halfmoonforever

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Does anyone know if it would be worthwhile putting in my entire salary + 40% of my overdraft into the bond each month?

I would be earning ebucks and saving a chunk in the interest on the bond, but not sure if it's worthwhile to transfer it between accounts like that each month. I can play around with about a 100k like that.
 
halfmoonforever said:
Does anyone know if it would be worthwhile putting in my entire salary + 40% of my overdraft into the bond each month?

I would be earning ebucks and saving a chunk in the interest on the bond, but not sure if it's worthwhile to transfer it between accounts like that each month. I can play around with about a 100k like that.
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What are the transfer fees on your accounts?

RE overdraft - sure there's interest payable on that?
 
Pakka said:
What are the transfer fees on your accounts?

RE overdraft - sure there's interest payable on that?
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Transferring between the Flexi Bond and my Cheque account is free as far as I know. Can't find the interest that they'll charge on the overdraft though, but figure it could be worth while in terms of ebucks+interest saved on bond?
 
Transfer full amount after debit orders went off to your flexi bond.

Spend only on your credit card and pay the credit card off each month ,credit card wont be charged interest if you clear it in full every month.
 
halfmoonforever said:
Transferring between the Flexi Bond and my Cheque account is free as far as I know. Can't find the interest that they'll charge on the overdraft though, but figure it could be worth while in terms of ebucks+interest saved on bond?
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The interest charged on the overdraft is sure to be higher than the interest you are paying on the bond
 
JStrike said:
The interest charged on the overdraft is sure to be higher than the interest you are paying on the bond
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This.

Interest on overdrafts are usually stupid high. As Gtx Gaming said, credit cards usually have a 50 day interest free period (although I'm not sure if that still applies on transferring money out of it (yes I know that's not what you were planning to do)), but from personal experience, cheque account overdraft interest kick in immediately.
 
Correct interest on OD is generally higher then Homeloan.
 
Yeah get rid of the overdraft completely and then just put the excess into your bond after debit orders etc.

Depending on the outstanding amount it can be a few hundred a month.

Like someone on here showed me take the current interest rate against the amount that would sit in your excess balance and divide by 12.

R100 000 @ 10.50 % / 12 = R1250 a month.
 
Pienats said:
This.

Interest on overdrafts are usually stupid high. As Gtx Gaming said, credit cards usually have a 50 day interest free period (although I'm not sure if that still applies on transferring money out of it (yes I know that's not what you were planning to do)), but from personal experience, cheque account overdraft interest kick in immediately.
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MY understating is also that the 50 days interest free only applies to purchases on the card.
 
Pienats said:
This.

Interest on overdrafts are usually stupid high. As Gtx Gaming said, credit cards usually have a 50 day interest free period (although I'm not sure if that still applies on transferring money out of it (yes I know that's not what you were planning to do)), but from personal experience, cheque account overdraft interest kick in immediately.
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When transferring money from a credit account (or drawing cash) the 50 days interest free does not apply
 
Thanks guys. I'm not in my overdraft, I just have the facility. I'm completely debt free (or was before the bond, lol) and since I don't have a credit card, figured the long-term savings in interest on the bond would outweigh the short-term interest I'd have to incur on the overdraft. If I use my overdraft I gain ebucks as well, so that's why I asked.

Figure I'll just pay in extra each month and take out what I need if I need it from the flexi bond
 
Unless you got a super terrible rate, your bond interest should be way less than the overdraft's. So maybe not the best idea to make more debt to pay your bond off faster.
 
esvi said:
Unless you got a super terrible rate, your bond interest should be way less than the overdraft's. So maybe not the best idea to make more debt to pay your bond off faster.
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Naw I'll be paying the overdraft back in full every month, I figured the money could stay in the bond since the interest is calculated daily and reduce it over time like that, not incur more debt to pay it off quicker. But I get what you're saying :)
 
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