FNB Global Account Card

[Dolby]

The key thing with the Global Account is to use it as a sort of local foreign currency holding account for your foreign currency before you push it offshore. Do regular transfers from your FNB rand-based account to your FNB Global Account, and then once you've accumulated a bit of USD or GBP then transfer it offshore using Transferwise (cheap) or a Swift transaction (expensive). All the exchange control formalities are handled when you do the transfer from your rand account to the Global Account which means when you actually move the money offshore you do not have to go through any exchange control formalities again. That's why you're not allowed to use the Global Account Debit card inside South Africa, because the money has already been cleared as foreign exchange to be used outside South Africa.

Does that mean it's one way transfer ?
If I come back from holiday, I can't transfer back easily ?

 

[deweyzeph]

Does that mean it's one way transfer ?
If I come back from holiday, I can't transfer back easily ?

You can transfer back to your rand-based account, but you will have to go through exchange controls again, i.e. you will be asked for a BOP code, etc when you transfer from your Global Account to your rand account. Every time you move money between your rand-based account and your Global Account you go through the exchange control process.

 

[Spizz]

The key thing with the Global Account is to use it as a sort of local foreign currency holding account for your foreign currency before you push it offshore. Do regular transfers from your FNB rand-based account to your FNB Global Account, and then once you've accumulated a bit of USD or GBP then transfer it offshore using Transferwise (cheap) or a Swift transaction (expensive). All the exchange control formalities are handled when you do the transfer from your rand account to the Global Account which means when you actually move the money offshore you do not have to go through any exchange control formalities again. That's why you're not allowed to use the Global Account Debit card inside South Africa, because the money has already been cleared as foreign exchange to be used outside South Africa.

I'm not up on offshore accounts. Can you recommend one and a fools guide on how they work?

 

[deweyzeph]

I'm not up on offshore accounts. Can you recommend one and a fools guide on how they work?

An offshore account is just a bank account that it not domiciled in South Africa. So it could be any bank account you open in the UK, US, etc. There is absolutely nothing wrong with having an offshore account but you will always be asked when opening one up which country you're a tax resident in, and what your tax number is in the country you're tax resident in. This for reporting purposes and also so that the authorities in whatever country you've opened the account in know that you are not a tax resident there and therefore they do not have to worry about the money you're transferring into that account being untaxed income instead of you just simply transferring savings from South Africa that you've already been taxed on.

As far as declaring your foreign account to SARS is concerned, there actually is no direct way in the tax return for you to state if you have foreign bank accounts, but there is a "Statement of local and foreign assets" section at the end of your tax return where you are expected to state the amount of local and foreign assets you own. Obviously if you have savings in a foreign bank account you should be entering the amount (converted into rands) into the foreign assets section of the statement.

Also, if you earn any interest from your offshore account you need to declare the foreign interest you've earned (and any foreign tax that was withheld on it) in your annual tax return.

It's a good idea to keep any documentary evidence of all transfers you make between any accounts so that if SARS or the tax authorities in the country you've opened the offshore account in have any queries about the source of your funds you can prove exactly where, how and when your money came from and went to.

Note, I am not a professional financial advisor, this is just purely from my personal experience. Your mileage may vary.

 

[Spizz]

An offshore account is just a bank account that it not domiciled in South Africa. So it could be any bank account you open in the UK, US, etc. There is absolutely nothing wrong with having an offshore account but you will always be asked when opening one up which country you're a tax resident in, and what your tax number is in the country you're tax resident in. This for reporting purposes and also so that the authorities in whatever country you've opened the account in know that you are not a tax resident there and therefore they do not have to worry about the money you're transferring into that account being untaxed income instead of you just simply transferring savings from South Africa that you've already been taxed on.

As far as declaring your foreign account to SARS is concerned, there actually is no direct way in the tax return for you to state if you have foreign bank accounts, but there is a "Statement of local and foreign assets" section at the end of your tax return where you are expected to state the amount of local and foreign assets you own. Obviously if you have savings in a foreign bank account you should be entering the amount (converted into rands) into the foreign assets section of the statement.

Also, if you earn any interest from your offshore account you need to declare the foreign interest you've earned (and any foreign tax that was withheld on it) in your annual tax return.

It's a good idea to keep any documentary evidence of all transfers you make between any accounts so that if SARS or the tax authorities in the country you've opened the offshore account in have any queries about the source of your funds you can prove exactly where, how and when your money came from and went to.

Note, I am not a professional financial advisor, this is just purely from my personal experience. Your mileage may vary.

Thanks for the explanation, much appreciated. Having a Global Account and now the way the country seems to be heading has got me thinking I need to be aware of the options outside of South Africa.

 

[Snyper564]

You can transfer back to your rand-based account, but you will have to go through exchange controls again, i.e. you will be asked for a BOP code, etc when you transfer from your Global Account to your rand account. Every time you move money between your rand-based account and your Global Account you go through the exchange control process.

Its super quick and if you do it during the day takes minutes to clear. I sold some eur yesterday and took less than 5 min to pop back in my current account.

 

[AchmatK]

Anyone know if the card limits are in the currency of the card or Rand value?

The daily online limit for my GBP Global card is currently at 5 000.00 but no indication if this is the currency of the card or in ZAR.

Edit: FNB App indicates that applies to the currency of the card. Website is not clear.

 

[deweyzeph]

Anyone know if the card limits are in the currency of the card or Rand value?

The daily online limit for my GBP Global card is currently at 5 000.00 but no indication if this is the currency of the card or in ZAR.

I believe they're in GBP. When you go to the "Card Limits" screen it says GBP at the top.

 

[Snyper564]

Anyone know if the card limits are in the currency of the card or Rand value?

The daily online limit for my GBP Global card is currently at 5 000.00 but no indication if this is the currency of the card or in ZAR.

Edit: FNB App indicates that applies to the currency of the card. Website is not clear.

Agreed thought the same this weekend. My wife used her card for the first time at the Lounge in Madrid this morning with no issues. Was also 4 hours before the flight.

FYI you can change the pin at a normal FNB ATM, that's all that can be done with the card apart from enabling the pin on the chip at the FNB atm

 

[deweyzeph]

FYI you can change the pin at a normal FNB ATM, that's all that can be done with the card apart from enabling the pin on the chip at the FNB atm

I wasn't able to change the PIN using any channel, including at an ATM, online banking and the app. Eventually called the forex call centre and they said the PIN cannot be changed.

 

[Snyper564]

I wasn't able to change the PIN using any channel, including at an ATM, online banking and the app. Eventually called the forex call centre and they said the PIN cannot be changed.

Strange. I literally inserted card into FNB atm, it said enter pin, entered current pin then the menu said change current pin and I changed it. Did this on two global acc cards at to sep fnb ATM. The app now reflects the new pin as well.

 

[RogueTr00per]

Agreed thought the same this weekend. My wife used her card for the first time at the Lounge in Madrid this morning with no issues. Was also 4 hours before the flight.

FYI you can change the pin at a normal FNB ATM, that's all that can be done with the card apart from enabling the pin on the chip at the FNB atm

So the one option is swiping the physical card, and the other is to load the LoungeKey app and use that?

If you take a guest with, do they just swipe the card once and note that you have a guest?

 

[Snyper564]

So the one option is swiping the physical card, and the other is to load the LoungeKey app and use that?

If you take a guest with, do they just swipe the card once and note that you have a guest?

No idea, it was only her in this instance. she used the app.

 

[deweyzeph]

Strange. I literally inserted card into FNB atm, it said enter pin, entered current pin then the menu said change current pin and I changed it. Did this on two global acc cards at to sep fnb ATM. The app now reflects the new pin as well.

At an ATM the change pin button is just simply not there. Likewise in online channels there's only an option to view pin, but when you try to change the pin it comes back with error message saying that the pin cannot be changed for this card. I wish I could change it, it's driving me mad!

 

[Snyper564]

At an ATM the change pin button is just simply not there. Likewise in online channels there's only an option to view pin, but when you try to change the pin it comes back with error message saying that the pin cannot be changed for this card. I wish I could change it, it's driving me mad!

Sho that is bizarre. Is it specifically an FNB atm?

 

[Drifter]

So the one option is swiping the physical card, and the other is to load the LoungeKey app and use that?

If you take a guest with, do they just swipe the card once and note that you have a guest?

I never swiped my card, just used Loungekey app.

 

[deweyzeph]

Sho that is bizarre. Is it specifically an FNB atm?

I've only ever tried at an FNB atm. The thing is other users on Mybroadband have reported the exact same problem, and the feedback from FNB is that this is expected behaviour for the Global Account cards, so I'm actually more surprised that you are able to change your PIN.

 

[Snyper564]

I've only ever tried at an FNB atm. The thing is other users on Mybroadband have reported the exact same problem, and the feedback from FNB is that this is expected behaviour for the Global Account cards, so I'm actually more surprised that you are able to change your PIN.

That is super weird then as I was able to change my wife's pin Saturday morning and mine this morning. Exactly the same process.

Is your card marked as active on your profile? under my cards?

 

[deweyzeph]

That is super weird then as I was able to change my wife's pin Saturday morning and mine this morning. Exactly the same process.

Is your card marked as active on your profile? under my cards?

Yip, I've used the card many times, mainly for online purchases. It's definitely active. When I called FNB the person I spoke to said you simply can't change the PIN for these cards yourself. They can reissue a new random PIN manually, but they (or you) cannot set the PIN to something that you want it to be. I did ask why, but he said he wasn't sure but he thinks it has something to do with it being a foreign currency card.

 

[Snyper564]

Yip, I've used the card many times, mainly for online purchases. It's definitely active. When I called FNB the person I spoke to said you simply can't change the PIN for these cards yourself. They can reissue a new random PIN manually, but they (or you) cannot set the PIN to something that you want it to be. I did ask why, but he said he wasn't sure but he thinks it has something to do with it being a foreign currency card.

Sho, then it does appear that I was lucky in this instance.

Maybe only newer cards? Both these cards are less than 2 months old.