Terms and Conditions for Savings and Investment Accounts

How we InTerpreT THeSe TermS And CondITIonS

1.1 In these terms and conditions, the words on the left have the
meanings set out on the right, unless the context clearly shows
that the parties intended a different meaning:
1.1.1 Account
means the investment and
savings account opened in our
books in your name.
1.1.2 Business day
means any day which is not a
Saturday, Sunday or South African
public holiday.
1.1.3 expiry date
means, where a savings and
investment product is taken for a
fixed term, the date on which that
term has been completed (also
known as a maturity date).
1.1.4 Fixed term
means that you have taken the
savings and investment product
for a specific period of time as set
out in your agreement with us.
1.1.5 Juristic person
means an entity, which is not an
individual, for example a
company, which the law treats as
a separate legal person.
1.1.6 negotiable
means all payment instruments
instruments
which the law classifies as
negotiable instruments, the
most common examples of which
are cheques, bills of exchange and
promissory notes.
1.1.7 prime rate
means the publicly quoted prime
rate of interest (per cent, per year,
compounded monthly in arrears
and calculated on the basis of a
365 day year) published by Absa
Bank Limited from time to time as
being its prime rate.
1.1.8 product feature
means a short description of the
schedule
specific product features that only
apply to the savings and investment
product described therein.
1.1.9 Savings and
means any one or more of our
investment products savings and investment products
described in clause 3.
1.1.10 Terms and conditions means these terms and conditions
of use applicable to your savings and
investment product, as amended
from time to time.
1.1.11 VAT
means value-added tax payable
under the Value Added Tax Act 89
of 1991 and its regulations as
amended from time to time.
1.1.12 we
means Absa Bank Limited (reg no
1986/004794/06), a public
company duly registered as a bank
under the laws of the Republic of
South Africa, with registered
address at 7th Floor, Barclays
Towers West, 15 Troye Street,
Johannesburg, 2001.
1.1.13 You
means you, our client, identified in
the application form which you
submitted to us when you applied
to invest in one or more of our
investment and savings products.
1.2 Reference to:
1.2.1 one gender includes the other gender;
1.2.2 the singular form of a word includes the plural; and
1.2.3 the plural form of a word includes the singular.
1.3 Any reference to legislation will be a reference to such legislation
as at the date of acceptance hereof and as amended from time
to time.
1.4 If any period is specified in your agreement for the giving of any
notice or the doing of anything and such period has been
specified by legislation then, if such period is amended after
conclusion of this agreement, the amended period shall apply.

Absa Bank Limited, Reg No 1986/004794/06

Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7

1.5

Unrestricted

If any number of days is referred to, such days will be calculated

by excluding the first day and including the last day, unless the
last day is a Saturday, Sunday or SA public holiday, in which case
the last day will be the first business day thereafter.

InTrodUCTIon
2.1 You acknowledge and agree that:
2.1.1 your agreement with us for your savings and investment
product are made up of your application form, these
general terms and conditions, the specific product
feature schedule and any written notices that we give to
you in terms of applicable legislation;
2.1.2 if any of these general terms and conditions are in
conflict with those of a specific savings and investment
product feature schedule, the latter will apply;
2.1.3 we have given you an adequate opportunity to read and
understand all of these terms and conditions and the
product feature schedule and you do understand these;
2.1.4 we have made you aware of all terms and conditions
printed in bold.
2.1.5 if your savings and investment product was not taken
for a fixed term and subject to clause 4, we may
change, repeal, replace or add to any of these terms
and conditions and/or the product feature schedule at
any time on reasonable written notice to you.
2.1.6 our notice will at least provide you the opportunity to
withdraw your money without penalty before the new
terms and conditions begin to apply. If you continue to
use your account after the new terms and conditions
begin to apply, the amended terms and conditions will
apply to your account.

SpeCIFIC SAVIngS And InVeSTmenT prodUCTS

3.1 demand products
If you have opened a savings and investment product which is a
demand product, you will have immediate access to the
money in your account.
3.2 notice products
If you have opened a savings and investment product which is a
notice product, you must give us notice when you want to
withdraw money from your account.
3.3 discipline savings products with a fixed term
If you have opened a savings and investment product with a
fixed term, you must deposit a minimum amount into your
account for a minimum period of time.
3.4 Fixed-term deposit products
If you have opened a savings and investment product which is a
term deposit product, you must deposit a certain amount in
your account for a fixed term. Your specific interest rate will be
stated in a receipt that we provide to you when you take up one
of these products. In these products you will not earn
compounded interest (ie no interest upon interest).

InTereST rATeS
4.1 Unless these terms and conditions, your product feature
schedule or another notice or receipt given to you states that a
specific interest rate applies or states otherwise:
4.1.1 the interest rates that we offer on savings and investment
products are not directly linked to our prime rate or any
other rate or in a specific ratio (e.g. prime 1%), but are
determined by many factors and may change daily,
weekly, monthly or at other intervals. Accordingly the
interest rate that will apply to your savings and
investment product will change from time to time;
4.1.2 the interest rates that we offer are annual interest rates;
4.1.3 where applicable, you will earn compounded interest on
products (i.e. interest upon interest) provided you do not
withdraw the available interest from your account;
4.1.4 we calculate the applicable interest rate that we offer on
our savings and investment products on a daily basis and
capitalise it (credit it to your account) monthly; and
4.1.5 in addition to 4.1.1, if we stop to make the same savings
and investment product that you have now available to
new clients, we may reduce the interest rate that
applies to your product.
Absa 2207 EX (T&C) (CPA) (10/04/2014)

4.2 If the interest rate of your savings and investment product has
an interest rate that is linked to a specific rate (such as our prime
rate), even if in no specific ratio, then the interest rate on your
product will change (i.e. increase or decrease) whenever that
specific rate changes and with the same percentage points.
4.3 The details of the interest we pay on each savings and
investment product are available at any of our branches and on
Absas website (www.absa.co.za).
5

FeeS
5.1 The amount of fees which you must pay to us for this savings
and investment product and account are available at any of our
branches and on our website (www.absa.co.za).
5.2 Any fees in respect of your account are payable immediately
when they are charged and will be debited to your account.
5.3 We are entitled to change or increase the fees or the method we
use to calculate these fees from time to time. We will give you
reasonable written notice of any such changes.

operATIon oF YoUr ACCoUnT

6.1 We require that you keep the minimum amount as agreed in your
account at all times.
6.2 You will, as a result, not be able to withdraw the minimum
amount from your account, unless you want to close your
account. Details about the minimum amount applicable to your
account and all other savings and investment accounts will be set
out in your product feature schedule and are available at any of
our branches.
6.3 Your savings and investment accounts should never have a debit
balance. Any debit balance will immediately be due and payable
in full even if we have not requested payment from you.
6.4 You must ensure that there is always sufficient funds in your
account to pay all applicable fees and/or charges.
6.5 The signing instructions which apply to your access account (ie
the account held in your name and which you use to log onto
and access our Internet banking service), will apply to your
account and any other savings and investment account which
you have opened with us online using our Internet banking
service.

depoSITIng negoTIABle InSTrUmenTS

7.1 When you deposit any negotiable instrument into your account,
we usually act as the collection agent on your behalf.
7.2 Usually negotiable instruments which are delivered by you or on
your behalf for collection will only be available as cash in your
account after the instruments have been paid. But we may, in our
discretion, credit the amount of any negotiable instrument which
is deposited to your account and allow you to access this amount
or part of this amount, before we actually receive this amount.
7.3 If we do not receive the amount of any negotiable instrument
which is deposited to your account for any reason, we will reverse
the credit and any interest that we paid to you on this amount.
7.4 We are not liable for any errors which we make because of
incorrect information which we rely on to process any negotiable
instrument which is deposited to your account, including, but not
limited to incorrect account numbers given to us by you or by
another person on your behalf.
7.5 We do not accept responsibility for ensuring that you have lawful
title to the negotiable instruments which you deliver to us for
collection.
renewAl oF A FIxed-Term AgreemenT
8.1 We will give you prior written notice of at least 40 (forty) days
before the expiry date of a savings and investment product with a
fixed term (maturity date). On maturity date your funds will
then become available for withdrawal:
8.2 If we have not received your new instructions on maturity date,
we will re-invest your funds automatically in the same product
and for the same term, but at the interest rate that applies at the
time. In such event these terms and conditions and the product
feature schedule will continue to apply in respect of such
investment with the necessary changes required by the context.
8.3 Within 30 (thirty) days after the re-investment, you may:
8.3.1 cancel the re-investment without any penalty and close
your account. In such event you will not earn any interest
from the maturity date until your account is closed; or
8.3.2 request that the re-investment be changed to another
savings and investment product of your choice. In such
instance you will earn interest at the interest rate that we
have agreed upon in respect of the new product from the
maturity date.
8.4 If you request us, more than 30 (thirty) days after the
re-investment, either to withdraw some or all of the funds from
your account or to change your investment to another
investment:
8.4.1 we may refuse an early withdrawal of some or all of
your funds (that means we will only allow such
withdrawal if there are specific reasons acceptable to
us); and
8.4.2 any withdrawal allowed by us, or change to another
savings and investment product, will be subject to a
penalty which you will have to pay. we will calculate

the penalty at the time of withdrawal or closure and

you should ask us how much the penalty would be
before you decide to proceed.
8.5 Notwithstanding clause 8.2 we reserve the right, instead of
re-investing your funds, to transfer your funds to any other
product that you may have with us or deal with your account as
provided for in clause 10.
9

prodUCTS no longer oFFered

9.1 Unless you have a product with a fixed term, we may stop
offering and terminate any savings and investment product. If
this happens:
9.1.1 we will continue to support such product for a
reasonable period during which our agreement will
continue to apply; and
9.1.2 we may offer you other savings and investment products
which may suit you.
9.2 If, after a reasonable time, you have not accepted any of these
offers to invest in other savings and investment products, we
will, on prior written notice to you, deal with your account as set
out in clause 10.

10

dormAnT ACCoUnTS And UnClAImed FUndS

10.1 we can classify any account as a dormant account if you do not
use your account or product, facility or service linked to your
account for a certain period of time, which we determine from
time to time.
10.2 Before we classify your account as dormant we will give you
20 (twenty) business days notice that we intend to do so and
tell you what you should do to avoid that.
10.3 If you do not respond as we have required in time, we may
classify your account as being dormant. When an account is
classified as dormant, you may not be able to transact on your
account or use the product, facility or service linked to your
account. This means that we have closed your account.
10.4 You will remain entitled to any funds in the closed account,
provided that you are able to give us proof of identity and
entitlement to the funds.
10.5 You will remain liable for and must pay all costs, which will
include, but not be limited to tracing fees and administration
fees, which we may incur in attempting to locate you and
validate the claim.
10.6 when the dormant account is closed, no interest or fees will
accrue to that account.

11

CloSUre oF YoUr ACCoUnT And CAnCellATIon oF THeSe

TermS And CondITIonS
11.1 You may at any time ask us in writing to close your account,
without penalty, except for savings and investment products
with a fixed term or where these terms and conditions, the
product feature schedule or another notice or receipt that we
have provided to you states that a penalty will apply.
11.2 If the savings and investment product has a fixed term, you may:
11.2.1 close your account upon the end of its fixed term
(maturity date) without penalty; or
11.2.2 request us to close your account at any other time, in
which event the provisions of clause 8.4.1 and 8.4.2 will
apply.
11.3 If your agreement is not for a fixed term, we may, within our
discretion, decide to terminate our relationship and close your
account. In such instance we will give you 30 (thirty) days
written notice before we do that. We do not have to provide
reasons for doing that.
11.4 Irrespective of whether your agreement is for a fixed term or not,
we may close your account or refuse you access to your account
without prior notification to you, if your account has been used
to commit any fraud or we are compelled to do so by law.
11.5 If we close your account or cancel our agreement, you remain
liable to us for any amount you owe to us under the agreement,
up to the date of this closure or cancellation.

12

YoUr InFormATIon
12.1 You warrant that all information (including personal information
and contact details), which you submit to us from time to time,
is complete, accurate and correct at all times. You must notify us
immediately if there is any change in the information you
submitted to us (a warranty for purposes of these terms and
conditions refers to an express confirmation on your part that
something is or will be as you have represented to us or
promised us that it is or will be).

12.2 We are not responsible or liable for any communications which

we send to you to an incorrect or outdated address.
13

14

15

16

BAnk STATemenTS
13.1 In respect of all other savings and investment products, we will
provide you with bank statements on your request and at any of
our branches.
13.2 We may charge fees for providing bank statements.
13.3 It is your responsibility to check your bank statements. You must
let us know in writing within 30 (thirty) days of the date of the
bank statement if there is something you do not agree with. If
you do not let us know within this time, we are entitled to treat
the bank statement as correct. You will then have to prove that
the bank statement is not correct.
SeT-oFF And reAlISATIon oF SeCUrITY
14.1 We may set-off any amounts which you owe us against any
credit balance on any account held by you in our books, as may
be permissible in law.
14.2 We may realise any security which we hold for any amounts that
you owe us and apply the proceeds thereof to pay such debts as
the law allows us to do.
delIVerY oF goodS, STArT oF SerVICeS And delAYS
AFFeCTIng oUr SerVICeS
15.1 We will be able to commence with our services once we have
approved your application, and any further conditions imposed
by law have been complied with.
15.2 You may choose to accept delivery of goods, for example, a
bank account card, at your branch or at your chosen address.
You may also specify the date and time of delivery.
15.3 If you need to use the goods to access our services, we will only
be able to start the services after you have accepted delivery of
the goods.
15.4 If we are unable to provide the services or the goods, we will
inform you immediately and refund any payment made within
30 (thirty) days of this notice.
15.5 You acknowledge that our services may be unavailable due to
interruptions to our electronic communications network or
power outages which are not within our control. We give you
notice under this clause of these unavoidable interruptions and
delays in providing the services. We will give you notice if
scheduled maintenance will cause an interruption or delay in the
provision of services.
reTUrn And reFUnd polICY
Our refund policy applies to all goods that we supply. This policy is
available at any of our branches and on our website (www.absa.co.za).

17 AddreSS wHere YoU Agree To ACCepT noTICeS And legAl

proCeSSeS
17.1 You choose the physical address in South Africa which you
confirm to us in writing from time to time as the address at
which you agree to accept any notices we send to you, where
we may serve any legal process and may execute on any
judgment we obtain against you, and for all other purposes
relating to this agreement. (This address is known in law as your
domicilium citandi et executandi.)
17.2 The notices and processes include letters reminding you of
payments you have missed, letters of demand, a summons and
other legal notices. A legal process includes the ways we can
enforce any court judgment, for example, a summons, attaching
your property and selling it to recover money you owe us.
17.3 If you want to change this address, you must visit your nearest
Absa branch to change and verify (confirm) your physical address.
17.4 If you change your address but do not notify us, you agree that
we are allowed to send notices to you and serve legal processes
at your last address known to us or any other address you have
given us proper notice of.
17.5 Even if this agreement is terminated, this clause remains valid
for the purpose of any legal proceedings pertaining to this
agreement.
18

CommUnICATIon BeTween US
18.1 If we send a notice to you:
18.1.1 by prepaid registered post to your chosen address, we
will treat it as if you have received it 7 (seven) days after
we posted it;
18.1.2 by hand to your chosen address, we will treat it as if
you have received it on the date on which we delivered
it;
18.1.3 by fax at the fax number you gave us, we will treat it as
if you have received it at the time of the transmission;
18.1.4 by email at the email address you gave us, we will treat
it as if you have received it at the time we receive a
delivery receipt.

18.2 When we presume that you received a notice by a certain date,

it means we do not have to prove that you did receive it then.
If you claim that you did not receive the notice by that date
then you will have to prove it.
18.3 If you have actually received a written notice or
communication from us, even if it was not sent to or delivered
at your chosen address, fax number, postal address or email
address, it will still be a valid notice.
18.4 Even if this agreement is terminated, this clause remains valid for
the purpose of any legal proceedings pertaining to this agreement.
19

legAl CoSTS
either party will be liable to pay to the other party legal costs in
connection with this agreement on the attorney and client scale,
provided it is so awarded.

20

CerTIFICATe
20.1 A certificate signed by one of our managers is sufficient evidence
of any amount (including interest) that you owe and that is due to
us under these terms and conditions, as well as any rate of
interest and whether or not any transaction required you to
present a card or a personal identification number (pIn) or both.
20.2 Unless you can prove the contrary, we may use this certificate to
obtain provisional sentence, default judgment or summary
judgment or to commence with any other legal proceedings.
You agree that we do not have to prove the appointment of the
manager who signs the certificate.

21

eACH ClAUSe IS SepArATe (SeVerABIlITY)

21.1 The parties acknowledge that each provision of these terms and
conditions is separate. If any provision of these terms and
conditions is or becomes illegal, invalid or unenforceable for any
reason, it must be treated as if it had not been included in these
terms and conditions. This does not:
21.1.1 make the rest of these terms and conditions illegal,
invalid or unenforceable; or
21.1.2 affect the legality, validity or enforceability of these terms
and conditions as a whole.

22

THe lAw THAT ApplIeS To THIS AgreemenT

This agreement is in all respects governed by the law of the Republic
of South Africa.

23

CoUrTS THAT wIll HAVe JUrISdICTIon

You agree that we may bring legal proceedings against you relating to
your agreement in any Magistrates Court that has the authority to hear
and decide on the case. (This authority is called jurisdiction.) You agree to
the jurisdiction of the Magistrates Court even if the amount we claim
from you is more than the Magistrates Court limit. This does not prevent
us from bringing legal proceedings in a High Court that has jurisdiction.

24

we do noT loSe oUr rIgHTS

We do not lose any of our rights under these terms and conditions if
we do not immediately and in every instance insist on them. You may
not raise it as a defence if we have a right that we did not enforce at
the relevant time. For example, if we allow you extra time to pay your
fees in one month, it does not mean we have allowed you extra time
the next or any other month.

25

YoU mAY noT TrAnSFer AnY oF YoUr rIgHTS or oBlIgATIonS

Under THeSe TermS And CondITIonS
25.1 You may not transfer any of your rights or obligations under
these terms and conditions to anyone else without our prior
written permission.
25.2 We may transfer over rights and/or obligations under this
agreement to a third party.

26

endIng THe TrAnSACTIon

26.1 If:
26.1.1 you are a consumer in terms of the Consumer Protection
Act, and
26.1.2 this agreement is not subject to the National Credit Act; and
26.1.3 it resulted from direct marketing,
you may cancel this agreement by giving us written notice within
5 (five) business days after the start date or within 5 (five)
business days of the date on which goods were delivered to you
(which date is later). If you do so in this time, you do not have to
give us a reason and there will be no penalty, but we may deduct a
reasonable charge if it applies.

27

wHen YoU wIll Be In deFAUlT oF THIS AgreemenT

27.1 We may exercise our rights, which include demanding immediate
payment of overdue amounts and terminating this agreement,
without prejudice to any of our other rights (that is, without
barring any future action), if any of the following events occur:
27.1.1 you do not comply with a provision of this agreement
(including failure to pay any amount on due date) and you
fail to remedy this breach within 10 (ten) days of receiving
written notice from us asking you to do so;
27.1.2 any representation or warranty made in connection
with this agreement or any other documents supplied
by you to us in connection with this agreement is
materially incorrect or false (where a warranty refers to
an express undertaking on your part that something is
or will be as you have represented to us or promised us
that it is or will be).

28

THe ApplICATIon oF InTernATIonAl lAwS To YoUr ACCoUnT

28.1 We are committed to complying with national and international
laws, rules, regulations and policies that apply to the combating
of criminal activities, money laundering and terrorist financing.
28.2 To comply with our obligations under these laws, rules,
regulations and policies, we are expected to verify, process and
screen your application and the information contained in your
application form in the manner described in the application form.
28.3 Once we have opened your account, we are required in terms of
these laws, rules, regulations and policies to continuously screen
all information, instructions and transactions we process from
time to time for and on your behalf. This screening process may
delay the execution of your instructions and transactions. It may
also mean that your instructions or some transactions are
ultimately prohibited or limited and could even mean that we
may have to terminate our relationship with you.
28.4 we reserve the right to decline to open a further account for
you and may close your account.
28.5 To the extent permissible, we will advise you of any prohibitions
or limitations on such applications, instructions or transactions.
28.6 neither we, our affiliates, nor our respective employees, officers
or directors will be liable for any losses or damages of whatever
kind (ie whether special, punitive, direct, indirect, consequential
or otherwise), which you may incur or suffer because we
comply or try to comply with our obligations under the laws,
rules, regulations and policies described in this clause.
28.7 This is known in law as a limitation of liability, but is not
intended to operate if you suffered or incurred these losses or
damage because of our gross negligence or fraudulent intent
or that of any person acting for or controlled by us.

29

30

YoU opened YoUr ACCoUnT oF YoUr own Free CHoICe

30.1 You confirm that:
30.1.1 we did not make you open your account or do anything
leading up to these terms and conditions that would be
considered unconscionable or otherwise render these
terms and conditions unlawful;
30.1.2 there were no blank spaces on the application form or
these terms and conditions at the time when we
opened your account for you;
30.1.3 if your application started telephonically or
electronically, we confirmed that these terms and
conditions may be recorded and you have given us
permission to do so. You have also given us permission
to give you a copy of these terms and conditions within
a reasonable time;
30.1.4 we did not ask you to sign any additional
(supplementary) agreements or documents that are
not referred to in these terms and conditions; and
30.1.5 we did not make you an offer that automatically results
in an agreement if you do not decline it.

31

generAl deClArATIonS
31.1 You understand the risks and costs of applying for an account.
31.2 You understand and agree that we may disclose information
about your account and your conduct of your account to other
banks and credit bureaus when asked for such information.
31.3 You understand your rights and duties under these terms
and conditions.
31.4 You have received a copy of these terms and conditions.
31.5 You have the legal capacity (and where relevant authority) to
open your account on these terms and conditions. This means,
in the context of these terms and conditions, that the law
regards you as competent and qualified to open your account
on these terms and conditions, considering, if you are an
individual, factors such as your age, marital status and mental
state or, if you are a juristic entity, factors such as the relevant
provisions of your founding documents and whether the
person who signs this agreement on your behalf is authorised
to do so.

32

YoU Are AwAre oF TermS wITH SpeCIFIC legAl ConSeqUenCeS

32.1 You confirm all of the following:
32.1.1 You have read and understood all these terms and
conditions.
32.1.2 This agreement has been drawn up in the official
language of your choice.
32.1.3 You have read and are aware of all the terms that are
printed in bold.

THe ApplICATIon oF FICA To YoUr ACCoUnT

When you apply to open your account we are obliged to comply with our
obligations under the Financial Intelligence Centre Act 38 of 2001, which
means that we must verify your identity and other particulars before the
account is opened. Going forward, we are obliged to continue to comply
with our obligations under this Act, which include the obligation to report
all suspicious and unusual transactions to the appropriate authorities.

Signed at

on

WITNESSES
1
(Signature)

(Full names)

2
(Signature)

(Full names)

Client/For and on behalf of client duly authorised thereto