If you travel frequently, having a foreign currency account, such as the FNB Global Account, is a must. Even those who regularly transact in foreign currency may require an account that can accommodate their frequent currency spendings.
The FNB Global Account is a savings account that was created to assist South Africans with foreign exchange challenges. Customers with check accounts can open Global Accounts at FNB. RMB cheque account holders can also benefit from foreign exchange by opening an RMB Global Account.
FNB Global Account Summary
The FNB Global Account is a foreign currency bank account with a 1% cross currency conversion rate. The FNB Global Account charges an annual fee of US$25.00 for the USD account, €23.00 for the Euro account and £20.00 for the British pound account. Account holders can access 9 foreign currencies through the FNB Global Account. Depending on the currency and amount in your Global account, the interest rate on the FNB Global Account can be as high as 3.75%.
The US dollar, Euro, Australian dollar, British pound, Indian rupee, Chinese renminbi, Swiss Franc, UAE Dirham, and Canadian dollar will all be available to you. Through Lounge Key, the FNB Global Account grants you access to over 1000 airport lounges across the world.
How does an FNB Global Account Work?
An FNB Global Account is designed for onshore and offshore foreign currency savings and transactions. You can use the account to get quick access to foreign currency and manage it on the go with the help of FNB’s digital platforms. You can use the account to transact, make transfers, receive money, and make foreign payments on occasion. The card account works in the same way as any other card account, but it allows you to store multiple currencies. However, unlike other FNB accounts, this one has stringent requirements that must be met.
The South African Reserve Bank establishes these guidelines (SARB). When you have to invest more than R1 million, there are rules to follow. You must supply FNB with a valid tax clearance for overseas investment to be eligible for a foreign investment allowance (FIA). If accepted, you would be able to make foreign investments of up to R10 million in a calendar year. You do not need to give a SARS tax clearance for overseas investment for investments under R1 million, but you must supply FNB with your tax number.
FNB Global Account Interest rates 2023
| # | Balance tiers | USD | GBP | AUD | EUR | INR | Fen | CAD | CHf | AED |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 0 – 5000 | 0.10% | 0.05% | 0.60% | 0% | 3% | 0% | 0% | 0% | 0% |
| 2 | 5001 – 10000 | 0.10% | 0.05% | 0.60% | 0% | 3% | 0% | 0% | 0% | 0% |
| 3 | 10001 – 25000 | 0.20% | 0.10% | 0.80% | 0% | 3.00% | 0% | 0% | 0% | 0% |
| 4 | 25001 – 50000 | 0.35% | 0.25% | 0.80% | 0% | 3.00% | 0% | 0% | 0% | 0% |
| 5 | 50001 – 100000 | 0.80% | 0.45% | 0.80% | 0% | 3.50% | 0% | 0% | 0% | 0% |
| 6 | 100001 –250000 | 1.20% | 0.55% | 0.90% | 0% | 3.60% | 0% | 0% | 0% | 0% |
| 7 | 250001+ | 1.80% | 0.65% | 1% | 0% | 3.75% | 0% | 0% | 0% | 0% |
RMB Global Account Interest rates 2023
| # | Balance tiers | USD | GBP | AUD | EUR | INR | Fen | CAD | CHf | AED |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 0 – 5000 | 0.10% | 0.05% | 0.60% | 0% | 3% | 0% | 0% | 0% | 0% |
| 2 | 5001 – 10000 | 0.10% | 0.05% | 0.60% | 0% | 3% | 0% | 0% | 0% | 0% |
| 3 | 10001 – 25000 | 0.20% | 0.10% | 0.80% | 0% | 3% | 0% | 0% | 0% | 0% |
| 4 | 25001 – 50000 | 0.35% | 0.25% | 0.80% | 0% | 3% | 0% | 0% | 0% | 0% |
| 5 | 50001 – 100000 | 0.80% | 0.45% | 0.80% | 0% | 3.50% | 0% | 0% | 0% | 0% |
| 6 | 100001 –250000 | 1.20% | 0.55% | 0.90% | 0% | 3.60% | 0% | 0% | 0% | 0% |
| 7 | 250001+ | 1.80% | 0.65% | 1% | 0% | 3.75% | 0% | 0% | 0% | 0% |
FNB and RMB Private Banking offer similar interest rates for their global accounts, however, the RMB Global Account has accelerated interest rates on selected currencies.
FNB Global Account Benefits
- The account has no minimum balance, so you can keep it at $0.00 if you want.
- You can order USD, GBP, and/or EUR debit cards to spend directly from your Global Account when you travel.
- You can use your global account to withdraw foreign currency in cash at ATMs abroad.
- Transfers from a cheque account to the` Global Account is free, giving you the opportunity to make as many transfers as you want.
- You can open an FNB Global Account in less than 5 minutes using your FNB online banking App.
- You can make local and international payments online using this account
- Offers a savings platform to save foreign currency and earn interest.
- You can receive your earnings from abroad which can be paid directly to your Global account in accordance with the SARB requirements.
- The account gives you access to over 1000 international airport lounges outside South Africa.
FNB Global Account Fees 2023
| # Fee | GBP | USD | EUR |
|---|---|---|---|
| Annual card fee | £20.00 | $25.00 | €23.00 |
| International ATM withdrawal fee | £3.00 | $5.00 | €4.00 |
| Card swipes and international online card payments | Free | Free | Free |
| Card replacement fee | £7.00 | $10.00 | €8.00 |
| Balance enquiry fee | £0.35 | $0.50 | €0.40 |
| Insufficient funds fee | £0.50 | $0.80 | €0.60 |
| Currency conversion | 1% cross currency | 1% cross currency | 1% cross currency |
Competitive Advantages of the FNB Global Account
- It is affordable as it comes with an account fee of $20.00.
- Comes with a number of freebies such as using the FNB digital platforms for free or unlimited transfers.
- Offers multi-currency for savings and transacting purposes.
- You can use the card anywhere around the world.
- You can receive international deposits on your account with a currency of your choice.
Competitive Disadvantages of the FNB Global Account
- Offer low interest in savings.
- Has only 11 currencies to choose from.
- Every currency has its card for usage purposes.
FNB Global Account Requirements
- Must reside in South Africa,
- Be over the age of 18 at the time of application,
- Must be a tax payer, and
- Have a qualifying FNB cheque account in good standing.
Conclusion
One of the clever methods to take advantage of foreign currency speculation, purchasing, and dealing in foreign currency is to use the FNB Global account. Make sure you have all of the required paperwork, such as a SARS tax certificate for overseas investment or a tax number, when applying for this account.
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