Absa Credit Interest Rates and Service Fees
ABSA’s standardised credit interest rates is as follows: updated due to repo rate change on 22 November 2018, increase of 25 basis points.Rates for Trust account product code 11043 & Trust (section 78(1)) product code 11045, revised effective from,24 November 2018.
|Forms of scams||Considerations to be made by the legal firm|
|The perpetrator will call the firm and advise that they mistakenly deposited an amount into the firm’s trust or business account when it was meant for another firm and would like a refund.||Depending on the form of the attempted scam, a legal firm should consider the following: Know your clients and check any and all provided details against the details that you already have in your records.|
|Ascertain if your firm is expecting any refunds, whether for audit fees or bank charges and what the amounts applied for are.|
|The perpetrator will advise the firm that an incorrect amount was refunded in respect of a refund application for audit fees and/or bank charges. They will then ask for a refund of a portion of the amount.|
|Check if the letterhead used is that of the purported stakeholder. This necessitates knowledge of the correct name of the stakeholder, the current logo of the stakeholder and the directors or senior personnel of the stakeholder, which would be reflected on the letterhead.|
|Check if the e-mail address used is that of the purported stakeholder. It is important to know the extension of the e- mail addresses of the purported stakeholder. For instance, the e-mail addresses of the AFF have the extension fidfund.co.za after the @ sign, fraudsters would perhaps use an email address with an extension fidelityfund.co.za after the @ sign.|
|The perpetrator will call the firm purporting to be a client of the firm and ask for banking details of the firm in order to make a deposit. A few days later, the perpetrator will make another call suggesting that they incorrectly paid money into the account.|
|Check if the quoted amount was received in your trust or business account as claimed.|
|Check on the bank statement if the amount was paid in cash or cheque.|
|The perpetrator will send an e-mail to the firm advising that an amount was incorrectly paid into the firm’s trust or business account when it was meant for another firm.||If the amount was received as a cheque deposit, do not be pressured to make a refund until the cheque has been cleared and confirmed as such with the bank. The perpetrator will apply pressure on you to refund them, do not succumb to the pressure.|
|The perpetrator will send post mail to the firm advising that an amount was incorrectly paid into the firm’s trust or business account when it was meant for another firm.||Inform the person requesting a refund that you will process a refund of the money as soon as it is cleared on your account and ask for proof of the deposit.|
|Ask the person requiring a refund to provide you with their banking details. It is important to know your stakeholders’ bankers and perhaps their bank details. Remember, the banking system recognises an account number and not an account name. The perpetrator can therefore, give you an account name of your stakeholder that they are purportedly representing, but the account number will not be that of the stakeholder.|
|Inform the stakeholder affected before you even consider a refund.|
|When informing the purported stakeholder, do not use any of the contact details provided by the purported stakeholder representative, check the legitimate contact details on the stakeholder’s website or inquire with your provincial law society.|
|Fraudsters may purport to be an existing client and provide a different account number into which money due to them should be paid.||Whenever a client that you are providing legal services to provides or changes an account number to pay into, insist on a bank stamped proof of that account.|
|A fraudster may hijack the identity of a senior partner in the practice, and send an e-mail to the bookkeeper containing a payment instruction.||Carefully check the sender’s e-mail address to establish its veracity, and if there is any doubt, obtain confirmation that the e-mail is genuine.|
|Balance in trust account||Rate|
|R0.01 – R50 000||1.35%|
|R50 000.00 – R100 000||2.10%|
|R100 000.01 – R500 000||2.45%|
|R500 000.01 – R1000 000||2.65%|
|R1000 000.01 – R2500 000||3.25%|
|R2500 000.01 – R5000 000||3.40%|
|R5000 000.01 – R10 000 000||3.75%|
|R10 000 000.01 – R30000 000||3.90%|
Absa bank fees Attorneys trust accounts, from the 1st January 2018 to 31st December 2018.
Fee type Attorney trust accounts (11043 and 11045) 2015 Pricing
Monthly fee: R70.61 from 1 May 2018, due to 1% vat increase.
Service fee: R100.88 from 1 May 2018, (due to 1% vat increase) standard rate, per cheque issued.
Cheque deposit: R40.00 per cheque.
Cash Deposit Fee, at branches: R8.00 base fee plus 1.00% of deposit, minimum charge is R35.00.
Cash deposits at cash centres: R6.00 base fee plus 1.00% of deposit.
Cardless Atm deposits: R6.00 base fee plus 1.00% of deposit.
Administration fees: Standard rates.
All other fees are standard as per the brochure available from Absa bank web site.
Interest is calculated on daily balance and capitalised monthly. These fees are applicable to both product 43 and the enhanced product known as product 45 which provides for automated monthly transfers of net interest to Legal Practitioners Fidelity Fund.
Click here to download the Historical Credit Interest Rates from 30-01-2014
Click here to view the rates on the banks page.
Please note that the Legal Practitioners Fidelity Fund cannot be held responsible for the correctness or otherwise of the information supplied. The interest rates quoted are subject to change as they are linked to call rates.