Here’s a question: how many banking products do you have? Generally speaking some of us have at least four: a current (also known as transactional) account, a home loan, vehicle finance, and a savings account. Perhaps you also have a credit card and life insurance. So anywhere between three and six banking products is not unusual. Where this scenario gets complicated logistically, is when those accounts are with different banking institutions, which is why Rewards programmes were created; to reward you for maximising your relationship with one bank, so to speak.
Transactional and home loan account synchronicity
Aside from Rewards programmes, there is enormous benefit that can be unlocked if you link your transactional account with your home loan, and under only one banking institution. Omar Baig, Head of Transactional Banking at Absa Retail and Business Bank explains that the most immediate benefit by so doing, is that you are able to use that bank’s digital services to the optimum.
Let’s assume you have a savings or transactional account with a different bank to that of your home loan account, and you want to transfer extra funds into your home loan, or vice versa. Such a transaction needs to go through two banking systems before it reflects in your home loan, and in some cases this can take up to three days.
“However having your transactional account and home loan with the same bank makes it easier for you to service your loan and move money in real time and at no cost between the two products, for example in making pre-payments or withdrawing the amounts related to any excess payments in need.” Baig is referring particularly to Absa FlexiReserve, whereby customers can access funds they have already paid over and above the minimum monthly home loan repayment.
Baig also explains that “if you approach a bank that you have a primary banking relationship with, you are more likely to obtain the best value from your bank because the bank has a better understanding of you and is able to provide more tailored products and services such as providing you with the best home loan rate possible.”
Flexibility
The Absa FlexiReserve provides you with interest savings on the home loan account due to a reduced outstanding balance, enables you to pay off your home loan sooner, and you also have access to these funds 24/7 if you have the Absa banking app or Online banking. This gives you better control and the security of knowing that everything stays in-house.
Premium value
Another advantage of having at least your transactional and home loan accounts with one bank, is the better the understanding the bank has of your risk profile and banking behaviour. Absa, for example, can then inform you of the best management and products relative to your needs. In current times for example, the Absa Gold and Premium Value Bundles applied to a transactional account, offer free retrenchment and/or disability cover of up to R5000 (Gold) and R10 000 (Premium). Also in play within the bundles is a death benefit of up to R20 000 (Gold) and R25 000 (Premium).
Rewards
Further booming the Gold and Premium Value Bundle products is a limited time campaign, running from 15 February to 15 May, whereby Absa Home Loan customers stand a chance to win a R20 000 cash prize! Customers who open one of the two products and have an existing Absa home loan or open a new Absa home loan account during this period, will be eligible for entry into the draw for this amazing prize that can be used to increase a FlexiReserve balance or for anything else.
Absa Life insurance customers have the chance to win 12 months’ worth of premiums up to a maximum of R10 000. Vehicle finance account holders could score three car installments paid in cash, and credit card holders have the chance to win R15 000. Savings and investment customers may also qualify for a chance to win back their investment. “The only additional requirements to qualify for these offers, is a switch in salary deposits to an Absa transactional account, the registering of two debit orders on that account, and ensuring the Absa banking app is downloaded and utilised,” says Baig.
It gets even better when the customer also applies for the Absa Rewards programme, which is the only South African banking institution that pays its members ‘real cash’ in rewards. In addition to this customers can use the rewards to buy airtime, pre-paid electricity, transfer cash into their transactional account, or save the cash back in their savings and investment account
“Our Rewards partners offer discounts, such as up to 30% off fuel costs at Sasol garages. Woolworths, Pick n Pay, and Dischem are also offering up to 30% discounts to Absa Reward members, and even better is Nu Metro that guarantees a 50% discount. Telnet is yet another, where our members are rewarded with 10% cash back on signing up for home connectivity services like ADSL, LTE and fibre,” says Baig
Added advantage
Absa have also sweetened this pot by recently launching the Absa Advantage, which allows customers to earn more than their normal cash back. With Absa Advantage customers are presented with a challenge, be that an educational quiz or as simple as updating personal information, for which they are rewarded with a voucher from a participating partner. “Our first challenge in a week attracted more than 100 000 Absa customers, who received vouchers from fast food outlets Steers, Wimpy, Burger King, and Nandos,” confirms Baig.
To sign up for all Absa Rewards is easily done online, or by requesting this from one of Absa’s financial consultants, who can also advise on the best account management structure for your, or your family’s needs. “We want to see our customers grow their wealth, and reap the benefits of the solutions we have packaged as a full value bank” concludes Baig.