The African Bank credit card thread

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Zulfi

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guys, the monthly CC swipe into the AB NA, is that considered "in store CC shopping" correct?
 
Z

Zulfi

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zerocool2009 said:
So lets take this to another level I think ....

You guys concentrate on ebucks earnings .... Well, nice little perk.

This weekend I had an idea, and reading this read it will work.

Why dont we save on our bonds ? Meaning, prepay it with money that we dont own, and then we will save on interest every month.

Lets say my CC limit is R200 000, and I move R100 000 to my ABNA, after 7 days get the money, FNB Advanced ATM ... into a bond.

Then when the due date comes ... Just move the money from my bond back into my FNB CC (and restart the full process for the next month).

Getting the cash is the least of my worries.

I personally think FNB knows about all of this, but they are still not getting hurt. Where does banks make money ... via bonds (and prepaying your bond) ... what a wonderful idea.

I will keep you posted !
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This means savin big time on the interest on the bond.. right?
 
f2wohf

f2wohf

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zerocool2009 said:
Picture a bond of R2 000 0000 and you have always R100 000 prepaid in, which isnt even your money, and by a click of a button in and out as you wishes !

Interest on interest on interest !
Click to expand...

Don't the interests on cash taken out of the CC start from day 1 (instead of day 55 on a POS payment)?

You would effectively pay credit card interest rates to save bond level interest rates (basically losing money).
 
Z

Zulfi

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zerocool2009 said:
Picture a bond of R2 000 0000 and you have always R100 000 prepaid in, which isnt even your money, and by a click of a button in and out as you wishes !

Interest on interest on interest !
Click to expand...
I get what you saying.. kinda.. but what sort of benefit are we talking.. i know we discussed this at length before.. but if you have some time, id appreciate if you can show me numbers depicting the possible savings.. hypothetical obviously. And only if you got time..
 
Speedster

Speedster

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zerocool2009 said:
So lets take this to another level I think ....

You guys concentrate on ebucks earnings .... Well, nice little perk.

This weekend I had an idea, and reading this read it will work.

Why dont we save on our bonds ? Meaning, prepay it with money that we dont own, and then we will save on interest every month.

Lets say my CC limit is R200 000, and I move R100 000 to my ABNA, after 7 days get the money, FNB Advanced ATM ... into a bond.

Then when the due date comes ... Just move the money from my bond back into my FNB CC (and restart the full process for the next month).

Getting the cash is the least of my worries.

I personally think FNB knows about all of this, but they are still not getting hurt. Where does banks make money ... via bonds (and prepaying your bond) ... what a wonderful idea.

I will keep you posted !
Click to expand...

Welcome to the Whatsapp group :whistling:
 
Speedster

Speedster

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Zulfi said:
I get what you saying.. kinda.. but what sort of benefit are we talking.. i know we discussed this at length before.. but if you have some time, id appreciate if you can show me numbers depicting the possible savings.. hypothetical obviously. And only if you got time..
Click to expand...

The maths is pretty easy. For every R10 000 you're able to move across to your bond at prime (10.25% currently) you're looking at a saving of R85.42 per month. Most likely, given the 7-day notice, you'll only have the extra funds available about 23 days in a month, which then becomes R64.59 per month. You could add in the interest earned while the money's in the fixed deposit (8.35%) which is R16.
 
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Zulfi

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Speedster said:
The maths is pretty easy. For every R10 000 you're able to move across to your bond at prime (10.25% currently) you're looking at a saving of R85.42 per month. Most likely, given the 7-day notice, you'll only have the extra funds available about 23 days in a month, which then becomes R64.59 per month. You could add in the interest earned while the money's in the fixed deposit (8.35%) which is R16.
Click to expand...

thanks speedster.. does that mean X10 if 100k deposited monthly?
 
Z

Zulfi

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Speedster said:
Hehe. Sorry guys, no real whatsapp group. It was just a friendly way of saying to Zero that some of us have been doing this for months, and he has finally woken up to it.
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haha oh crap! ok thanks speedy.. seems like were deep in slumber too
 
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Dubai

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Can this method be used to for vehicle finance instead of bond is it possible?
To have prepaid amount of R100k put into vehicle finance and be transferred out or is it only applicable to bonds
 
Z

Zulfi

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Dubai said:
Can this method be used to for vehicle finance instead of bond is it possible?
To have prepaid amount of R100k put into vehicle finance and be transferred out or is it only applicable to bonds
Click to expand...

think its only flexi bond - i dont know much tho.. zerocool??
 
zerocool2009

zerocool2009

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Dubai said:
Can this method be used to for vehicle finance instead of bond is it possible?
To have prepaid amount of R100k put into vehicle finance and be transferred out or is it only applicable to bonds
Click to expand...

Why do you buy a car with vehicle finance to start off with ??
 
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