Settle ABSA bond or keep savings in UK ?

[Frankie]

You will have to ask your bank about the cost of keeping it open (I was under the impression it's free, well almost, maybe a R10 admin fee per month or something).

Just remember it will cost you several R1000's to register a fresh bond, should you ever need it one day.

PS: Good exchange rate. Nice one...

The admin fee right now is R28 , so I guess that will stay the same.

I would have got a good few thousand Rand more if I'd waited till today, but could not predict that on Friday.
I looked at the banks being awarded the bail-outs and thought that things would stabilise.

 

[guest2013-1]

Awesome. I'd also keep the bond open but be careful of advice from the banks. They're in it to make money, not to help you.

It may take 1000's to open a new bond, but I'd suggest closing it now. My dad kept his house bond open (R70 000, the house is now worth R880 000 more or less) and used it for a couple of emergencies (he is a small business owner) but when he wanted the bond extended to a few hundred thousand (well under the worth of the house) he was declined. Even after I co-signed with my mom on the bond and me being employed full time independant of my father's business.

Depends on what you want to do, but I'd say close this chapter in your life completely. You won't ever need to delve into your bond for any kind of emergency anymore. You're set with savings in the UK and your monthly income (now less the bond payment) and when you do leave you have a passive income chugging away money into your savings.

Congratulations is in order

 

[LancelotSA]

Acid, your advice seems slightly contradictory in that you say close the bond but then you go on to say that your dad had issues when trying to extend his bond. These same problems would arise if you tried to raise a new bond too.

 

[Barefoot Billionaire]

I'd love to know what exactly ABSA does to earn that R28 pm. I've quickly checked my August home loan statement and Nedbank only charges me a R5.70 admin fee (probably the cost of printing and mailing the statement).

 

[Frankie]

I'd love to know what exactly ABSA does to earn that R28 pm. I've quickly checked my August home loan statement and Nedbank only charges me a R5.70 admin fee (probably the cost of printing and mailing the statement).

No idea.
In July 2007 the Admin fee was R7.98

The other problem I had with ABSA was that I needed to open a regular account (it too has fees) just to view my bond online.

 

[Barefoot Billionaire]

If you start to do sum up al the monthly fees related to keeping your bond open and look at the chances of you needing an SA bond withing the next 5 years, keeping the account doesn't sound like such a good idea any more...

 

[guest2013-1]

Acid, your advice seems slightly contradictory in that you say close the bond but then you go on to say that your dad had issues when trying to extend his bond. These same problems would arise if you tried to raise a new bond too.

Yea sorry I just read my own post again.

I'd keep the account open because I might need it again.

My dad did the same but if you're looking at longer than 5 years you need to think about closing it rather and looking at re-opening it when you need the money. I think the cost is around R2000 (last my dad told me which is 4 years ago)

Getting a new bond would be easier than extending the old one that has been open since 1981. The bank he's with has changed from Boland to BoE to Nedbank. So its a mission with old accounts apparently (what we got told)

But my advice is to close it altogether. This will also positively impact your credit rating. With the NCA act, if you (in total across all your bank accounts) have x amount of debt they won't allow you a credit card or extension or overdraft to anything. But I don't think he'll need those anyway.