Absa recently relaunched its Flexi account, which is a basic transaction account with some fringe benefits. The Flexi account, which has been available on the market since 1994, has a client base of more than three million and has undergone two upgrades since its inception.
The target market includes the unbanked or entry-level customers who earn R500 upwards.
The account has a monthly charge of R7.50 and also comes with a funeral cover benefit to the value of R2 000.
To open a Flexi account, you must be over 16 years old, have a valid identity document and make an initial deposit of R50.
The charge for cash deposits is R1.05 per R100 at an Absa branch or 90 cents per R100 at an Absa ATM.
Cash withdrawals at a branch will cost R16 for the first R100 and 95c per R100 thereafter. At an ATM, it will cost R3 for the first R100 and 95c per R100 thereafter. A Saswitch withdrawal will cost R9 for the first R100 and 95c per R100 thereafter.
Balance inquiries cost R2.45 at an Absa branch or R1.50 at an ATM. The first two balance inquiries at an ATM each month are free of charge.
You pay R5 for a full statement printed out at an Absa branch or R1.50 for a mini-statement printed by an ATM.
Each account payment you make through an Absa branch costs you R15.50. If you transact through an Absa ATM, each payment costs you R3 for the first R100 and 60c per R100 thereafter, up to a maximum charge of R12.50.
If an ATM declines a transaction because there are insufficient funds in your account, you have to pay a penalty of R2.50.
Fund transfers cost you R15.50 each at an Absa branch or R3 for each transaction at an ATM.
Other benefits include access to a 24-hour, seven-days-a-week call-in telephone service that offers you legal advice, medical advice and evacuation procedure assistance in the event of an emergency, such as a fire in your home.
You can only access your funds through the Absa ATM network but you have the option to be notified by SMS (Notify Me) whenever a financial transaction takes place on your account. However, the Notify Me service costs 40c a transaction or per SMS or e-mail.
The free funeral benefit of R2 000 is designed to cover some of the costs that arise when the holder of a Flexi Account dies. It is not intended to replace burial society benefits, but to supplement them.
In the event of your death, the surviving spouse or an immediate family member (if you are unmarried) must go to the nearest Absa branch and provide proof of your death with a valid death certificate and identity document.
The Flexi Account also offers customers the option of other accounts which can be linked to the Flexi Account, such as Absa's MoneyBuilder, a low-cost, entry-level savings account.
The interest rate paid on savings in the the MoneyBuilder account is 6.4 percent on an initial opening amount of R50. The interest rate of 6.4 percent applies to balances up to R5 000, while balances of between R5 000 and R10 000 earn interest of 6.65 percent and balances between R10 000 and R15 000 earn you interest of 6.85 percent.
If you use an Absa ATM, you are allowed two free cash deposits, two free inter-account transfers, two free mini-statements and two free balance inquiries a month on the MoneyBuilder account.