living the good life with platinum banking from absa€¦ · smart travellers have a few tricks up...
TRANSCRIPT
Platinum Banking
Platinum e-Zine Issue #63 November 2014
Living the good life with Platinum Banking from Absa
Inside this Issue
No more money woes when
travelling abroad
Special offer from Kasha
Boutique Hotel, Zanzibar
What is Fairtrade South
Africa?
The importance of good
nutrition
Sibusiso Vilane - a true
trailblazer and modern-day
adventurer
Win one of 3 double tickets
to Kamers vol geskenke in
Irene
How is profit share different
from interest?
Knowing your options when
it comes to credit
Go to Platinum Banking
Contact Us More Platinum News
“While it is a good idea to keep a small amount of cash with you for odd expenses like paying for
taxis, the bulk of your money should be kept in another format. ”
No more money woes when travelling abroad
Planning a trip overseas is often exciting and
stressful at the same time. With a myriad of
tasks to be ticked on your checklist, money is
the last thing you want to worry about. Yet,
without proper financial planning a trip could
end up being memorable for all the wrong
reasons. Being money-wise in another country
means doing your homework before you set
foot on foreign soil.
Smart travellers have a few tricks up their
sleeve. They know to shop for the best deal
when buying foreign currency, they keep the
exchange control regulations in mind, and they
understand the safety and security aspects for
convenient spending and minimising the risk of
loss or theft.
Shop for the best deal
A good starting point when
buying foreign currency is to
make use of a currency
converter on the internet (try
www.exchange-rate.com).
Enter the amount of spending
money you’ve set aside for
the trip and convert it to the
currency you need. This will give you the interbank rate offered by international banks on a daily
basis. The conversion rate calculated by the currency converter will be different to the rate offered
by local and online providers, such as banks, travel agents and exchange bureaus, as they charge
additional fees and commission. Your goal is to find the rate closest to the standard interbank
exchange rate.
As a frequent traveller, Peter Chalder-Wood from exchange-rate.com says that he often finds the
best currency price deals from online providers (but you have to wait for the money) and the worst
deals from airport exchange bureaux. However, do your own homework and also approach your
bank for a fair deal.
Know the rules
You wouldn’t want to get into trouble with the
law prior to your trip or upon your return
home. It’s important to know that all foreign
exchange dealings in South Africa are subject
to exchange control regulations determined by
the South African Reserve Bank. Absa’s
International Banking division highlights some
of the important points:
• The SA Reserve Bank sets an annual amount
that adults, children and business
representatives may take overseas. Find out
from your bank what the current limit is.
• In terms of current local regulations, you may
not receive your foreign exchange more than
60 days prior to departure.
• You will only receive your travel allowance if you are in possession of a valid passenger
ticket, e-ticket or electronic flight voucher and passport.
• By law, travellers need to cash in foreign exchange upon their return to South Africa. (With
the ‘soft currencies’ of Eastern European and most African countries, these banknotes will be
worthless or almost impossible to exchange upon return from your trip. Absa International
Banking suggests that you either spend it or convert it to a major currency – such as the US
dollar – before you return to South Africa).
Keep it convenient and safe
No savvy traveller wants to walk round with a wallet bulging with cash. While it is a good idea to
keep a small amount of cash with you for odd expenses like paying for taxis, the bulk of your
money should be kept in another format – and to minimise the risk, preferably in more than one
format.
There are a variety of products available, like the traditional and secure traveller’s cheques, which
are readily accepted in certain countries at traveller’s cheques accepting agents (make sure to
check the latest updates at www.americanexpress.com/useTC). Some of the accepting agents
negotiate the traveller’s cheques on a commission-free basis and apply reasonable exchange rates.
Traveller’s cheques never expire and, in case of loss or theft, can also be refunded within 24 hours.
These days, however, travellers tend to go for more convenient options like prepaid travel cards
that can be used like a debit card. Absa’s Cash Passport is a good example, where the foreign
currency is preloaded onto the card and ready for use 24 hours a day to withdraw money from
ATMs or to make purchases at shops, restaurants or hotels. You can also do balance enquiries to
monitor how much you’ve spent and how much money is available. These cards generally offer
better exchange rates and smaller fees than traveller’s cheques. Importantly, the back-up services
whilst you are abroad will give you the peace of mind you need.
Taking your debit and credit cards along (linked to your bank accounts at home) is a third option,
but should preferably only be used as a back-up due to poor exchange rates and high charges
abroad. Be careful when you are offered an “opt-in” currency conversion offer.
Tourists in foreign countries are often a target
for criminals. They are assumed to be rich, as
they are able to afford travel. Here are some
practical tips to avoid becoming a victim:
• Carry your money, cheques or cards
close to your body in a money belt
covered by clothing.
• On your daily excursions, only take the
amount you expect to use for the day –
and don’t flaunt what you have. Make
sure the rest is locked away in your
hotel room’s safe.
• Keep an eye out for counterfeit notes.
• Always check your change. Some
traders try to con tourists who are
usually unfamiliar with the local currency.
• Make copies of your passport, flight/travel documents, bank cards and the purchase
agreement for traveller’s cheques ‒ this will greatly simplify corrective action in case of theft,
loss or emergencies.
Photos - iStock
“The hotel is located on the rocks overlooking the ocean, guaranteeing total privacy and
unforgettable endless views over the Indian Ocean.”
Special offer from Kasha Boutique Hotel, Zanzibar
Experience a unique retreat bringing elegance,
intimacy, peacefulness and relaxation to the
ultimate tropical island hideaway. Known as
the 'Spice Island', Zanzibar evokes images of
an exotic paradise with white, palm-fringed
beaches and turquoise coves, dreamy dhows
with billowing white sails, and ancient Islamic
ruins.
It combines Arabic alleyways and historic
monuments with coral reefs and excellent
diving and snorkelling opportunities.
Zanzibar has lured traders, adventurers,
plunderers and explorers to its shores for
centuries. From the shores of Zanzibar Island,
the great European explorers Burton, Speke,
Krapf, Reubman, Stanley and Livingstone set
out on their voyages of
discovery into the hinterland.
Starting with the Assyrians,
Sumerians and Chinese to the
Portuguese, Dutch and
English, it was finally the
Persians and Omani Arabs
who settled here, and still rule
this island today.
Zanzibar is an irresistible attraction for those seeking a heavenly beach holiday or an exploration of
its exotic heritage — or a bit of both. Located about 35kms off the east coast of Tanzania, Zanzibar
is a group of islands consisting of the main island of Unguja (commonly known as Zanzibar), Pemba
Island, famous for its deep-sea fishing, and about 50 smaller surrounding islands and coral reefs.
Zanzibar is blessed with brilliant white beaches, lapped at by the warm turquoise waters of the
Indian Ocean, all providing the perfect place to relax, unwind and soak up the sun. Described as
‘paradise’, the beaches are interspersed with quaint fishing villages where life has gone unchanged
over many years. In the north of Zanzibar, the roads are lined with banana palms, mango groves
and coconut trees. It is also the dhow-building capital of Zanzibar, and the traditional boats with
their large white sails can be seen everywhere.
Tours in and around Zanzibar are a rewarding
experience, with both natural beauty and
cultural sights abounding. Stone Town is one
such highlight. This is the old city of Zanzibar,
and the cultural heart, where little has
changed for over 200 years. It is a place of
winding alleys, bustling markets, and ornate
buildings and mosques, and boasts the house
of wonders, the palace museum, Dr
Livingstone’s house and an Arab fort.
Kasha Boutique Hotel
Located in the north-east of Zanzibar, with an
amazing view of the Mnemba Atoll, against the
backdrop of the Indian Ocean, Kasha Boutique
Hotel has 11 exquisite Swahili-Arabic-styled
villas, each with a private baraza (outside
lounge), plunge pool and a panoramic,
turquoise sea view, with only the sounds of
the cool wind and waves lapping gently against the coral barrier reef to soothe away the creases of
everyday life.
During low tide, the white sandy beach is accessible by stairs, and during high tide the ocean is
accessible from a wooden walkway. The hotel is located on the rocks overlooking the ocean,
guaranteeing total privacy and unforgettable endless views over the Indian Ocean.
Each luxurious room is elegantly decorated with stylish Niru finishing and Islamic tiles depicting the
typical Swahili-style homes found in Stone Town. The calm colours, tasteful furnishings and chic
ambiance provide a serene experience, ideal for holidaymakers in search of an exclusive moment of
tranquillity. King-size beds, en-suite bathrooms, in-room safes, coffee and tea facilities, a mini-
fridge and a flat-screen TV are some of the amenities available in the rooms.
Being a small boutique hotel, Kasha provides personalised and friendly service of the highest
quality, and each guest gets to have that home-away-from-home experience. Management and
staff alike are committed to ensuring the well-being and satisfaction of guests at all times.
The Sama restaurant presents a menu that captures all the flavours and aromas of Zanzibar, and
exploits all the local produce available on the island. The hotel believes food is an important part of
one’s holiday experience, and the hotel’s cuisine takes guests on a culinary journey through
Zanzibar and Swahili culture.
The hotel’s infinity pool and bar, set on the
seafront, provide an incredible panoramic view
over the lagoon, and the dozens of fishing
boats passing along Kasha every day ensure a
unique daily spectacle. Afternoon tea/coffee
and moonrise cocktails are served at the pool.
The Lalaspa offers body scrubs, facials,
massages and holistic treatments with locally
infused oils for ultimate relaxation and
physical well-being. With all treatments
performed in an open environment defined by
cool sea breezes, chirping birds and the
splashing sound of the water against the
rocks, the harmony with nature makes the
experience natural and fulfilling.
(www.kasha-zanzibar.com)
*Special offer details
Package 1
• Pay for 3 nights and stay for 4
• R15 328 per person sharing for 4 nights
• Offer valid until 19 December 2014
• Please call the Traveldesk on 087 285 3601 for reservations
Package 2
• Pay for 3 nights and stay for 4
• R19 293 per person sharing for 4 nights
• Offer valid from 7 January 2015 to 16 March 2015
• Please call the Traveldesk on 087 285 3601 for reservations
Both packages include the following:
• Return flights on Mango departing from OR Tambo – packages are valid for departure on a
Tuesday and return on a Saturday
• Return transfers
• Accommodation
• All inclusive: Breakfast, lunch and dinner, plus free mineral water, tea and coffee during the
day
For enquiries and reservations, call Good Taste Travel on 086 111 1120
*Standard terms and conditions apply and can be obtained from www.goodtastetravel.co.za.
Photos - www.kasha-zanzibar.com
“ I always compare the period before Fairtrade with now and it's like night and day,”
What is Fairtrade South Africa?
Fairtrade is an ethical certification system that
aims to promote equality and sustainability in
the farming sector. Local sales of Fairtrade-
labelled products grew by a record 22% in
2013, to R287 million, and, according to
Arianna Baldo, Executive Director of Fairtrade
Label South Africa, this double-digit growth is
mainly the result of wider support from the
industry and of broader distribution networks.
Baldo explains that a product that carries the
Fairtrade label has met rigorous Fairtrade
standards, which focus on improving labour
and living conditions for farming communities,
and promoting farming practices that don’t
harm either people or the environment.
Fairtrade South Africa certifies agricultural
commodities such as wine
(approximately two thirds of
all Fairtrade wine sold globally
comes from South Africa),
coffee, tea, sugar, cocoa,
cotton, fresh fruit, honey and
nuts, and is currently working on expanding the product range available to the local market. “Our
focus in South Africa is local and African products, thus increasing the share of South-South trade
on Fairtrade terms. We are currently working on sugarcane, and we expect Fairtrade-certified sugar
to be available by the end of the year. This sugar will come from a cooperative of 600 small-scale
farmers in KwaZulu-Natal,” says Baldo.
Fairtrade Labelling Organisations International (FLO), now called Fairtrade International, was
established in Bonn (Germany), in 1997, to unite various labelling initiatives under one umbrella,
and to establish worldwide standards and certification. In 2002, Fairtrade International launched
the Fairtrade Certification Mark to improve visibility on supermarket shelves, facilitate cross-border
trade and simplify export procedures for both producers and exporters. Fairtrade Label South Africa
(FLSA) was established in 2009, and for the first time a producing country is actively promoting
Fairtrade in the local market.
Fairtrade is an alternative trading model that
combines trade with empowerment and
sustainable development. There are 1 139
producer organisations and over 2 000 trading
partners that are Fairtrade certified in the
world. All farmers and traders are annually
audited by FLO-Cert, the independent
certification body for Fairtrade, established in
2004, and is ISO65 accredited. “With
Fairtrade, the whole supply chain is checked —
from the field to when the product is packaged
and ready for consumption,” says Baldo.
In addition to its strict social and
environmental standards, unique to Fairtrade
is the Fairtrade Development Premium (FDP).
The FDP is an empowerment tool used to
achieve more equality and sustainability in the
agricultural sector. The FDP is paid by traders
in addition to their Fairtrade purchase. It is received and utilised by the end-beneficiaries of
Fairtrade; the smallholder member farmers in the case of a co-operative (producing, e.g., coffee or
rooibos), or farm workers in the case of a commercial farm (producing, e.g., wine).
These beneficiaries democratically decide how to spend the FDP, based on the unique needs of their
community. FDPs are a strong development tool, empowering community members to invest in
social and economic projects to improve their own lives. From education to eye care, to micro-
lending and soccer fields, the FDP is helping to transform farming communities across South Africa.
According to a research report produced by Fairtrade, over R12 million was received by Fairtrade-
certified farms in South Africa in 2013 via FDPs, with approximately 120 projects implemented to
improve the lives of approximately 6 000 direct beneficiaries. Extended families and communities of
the latter, amounting to approximately 30 000 recipients, also benefitted indirectly.
The benefits of Fairtrade to small producers
are summed up by Barend Salomo, managing
director of the Wupperthal Original Rooibos
Cooperative near Clanwilliam in the Western
Cape: “Without Fairtrade there was no future
for us in rooibos farming in Wupperthal.
Fairtrade guarantees us a minimum price for
our product that is substantially higher than
the general market price. In fact, all of our
customers currently pay us about twice as
much or more than the market price. People
often don't believe us when we tell them there
is no government funding in our building, our
tea court or our co-op; it's because of
Fairtrade that we have achieved this. I always
compare the period before Fairtrade with now
and it's like night and day,” he says.
Photos - iStock
“Weight loss goals should be realistic ― slower
weight loss supported with overall lifestyle changes is more likely to be sustainable.”
The importance of good nutrition
According to Shelly Meltzer, a registered
dietician at Shelly Meltzer and Associates, a
dietetic practice associated with the Sport
Science Institute of South Africa, more than
half of the South African population is
overweight or obese. The rate of obesity is
increasing, both locally and internationally,
with the prevalence of the condition in
adolescent boys having doubled over the last
six years.
Susan Scharf, a registered dietician with Susan
Scharf and Associates, says that 56% of
women and 29% of men of all race groups in
South Africa are overweight or obese. Obesity
in children is a major concern, with 23% of
girls and 10% of boys in the 10–14 years age
group, and 27% of girls and 9% of boys in the
15–17 year age group being overweight or
obese.
The most commonly used
measure of obesity is the
body mass index (BMI),
defined as weight in kilograms
divided by height in metres
squared, thus BMI = weight
(kg)/height (m²). A BMI of
18,6 to 24,9 is in the normal range, a BMI of 25 to 29,9 indicates overweight, while a BMI of more
than 30 is an indication of obesity. Meltzer explains that, while BMI provides a useful measurement
of obesity, it should only be used as a guide when measuring individual cases, as it does not take
into account the person’s body composition in terms of fatty or muscle tissue. Measurement of
waist circumference and skin fold thickness and bioelectrical impendence analysis (BIA), which
measures body fat percentage, are other ways of measuring overweight. A woman’s body fat
percentage should be less than 30%, while men’s should be less than 24%.
Obesity detrimentally impacts on your health
by increasing your risk of coronary heart
disease, hypertension, diabetes and certain
types of cancer, sleep apnoea, osteoarthritis
and psychological disorders. Scharf adds back,
hip, feet, joint, and fertility problems to this
list. “The risk of these problems starts when a
person is only slightly overweight, and the
likelihood increases as more weight is gained,”
Meltzer says.
The main cause of obesity is an imbalance in
the amount of energy consumed and the
amount of energy expended. “All food contains
energy and a person’s body uses the energy to
function. When a person eats more food than
they need to function, the extra energy is
stored as fat, resulting in obesity. In general
people eat too much of most foods, especially
foods with excess fat and sugar,” says Scharf.
According to Meltzer, every individual has a unique genetic make-up that may predispose them to
obesity: “You are more at risk of becoming overweight if one or both of your parents are
overweight. This can be exacerbated by an unhealthy household environment and learned lifestyle
behaviours.” Lifestyle habits that increase the risk of obesity include the regular consumption of
sugary beverages, consuming fast foods, lack of physical activity and increased sedentary time,
emotional overeating, alcohol consumption, stress and a lack of sleep.
Meltzer says that common myths around obesity and weight loss includes that you can buy weight
loss in a bottle: “There is no such ‘magic solution’ in an over-the-counter product,” and that you
can lose weight by exercising without changing your eating habits. “An energy deficit is more easily
achieved through diet compared to exercise; however, to prevent loss of lean body mass and
enhance your metabolic rate, you need to exercise.”
Sustainable weight loss can be achieved by
identifying and targeting specific negative
aspects of your eating patterns. Keeping a
food diary to identify problem areas is
particularly useful. It is essential that a plan is
practical and takes into account food shopping,
budgetary constraints, food preparation,
preferences and budget, social commitments,
medical and dieting history, work and sport
activities, as well as travel. “This requires
behavioural change, regular physical activity,
and a supportive environment, all of which are
important factors in achieving and maintaining
a healthy body weight. Weight loss goals
should be realistic ― slower weight loss
supported with overall lifestyle changes is
more likely to be sustainable. A registered
dietician can assess your diet and personalise
a plan for you,” concludes Meltzer.
Photos - iStock
“The future entirely depends on the education of children, their access to information to broaden their thinking and understanding of the ever-changing and challenging world,”
Sibusiso Vilane - a true trailblazer and modern-day adventurer
Sibusiso Vilane is an exceptional role model who refused to allow a humble start in life to prevent him from becoming one of the greatest adventurers in the world. Having completed the Seven Summits challenge by conquering the highest peaks on all the continents, he was encouraged by his close friend, British adventurer Sir Ranulph Fiennes, to undertake the demanding Three Poles Challenge.
Completing this trail by trekking to the North Pole in early 2012 meant that Vilane, a motivational and inspirational speaker, mountaineer and expedition guide and leader, became one of the few people in the world who have climbed Mount Everest and walked unaided to both the North and South Poles, enduring freezing temperatures of minus 40 degrees and ferocious snow storms in the process.
This father of four, who became a full-fledged member of the British Alpine Club in 2012, and was appointed Chief Scout of the South African Scout Association in December of that year, lists being introduced to the Queen of England at a special reception held to acknowledge those involved in mountaineering, adventure and exploration as one of the many highlights of his career.
Vilane, who also has numerous Comrades Marathons under his belt, was born in Shongwe Mission, in Mpumalanga, before relocating to Swaziland with his mother and sister. There, Vilane provided for his family by herding goats. He started his schooling at the advanced age of 11. Drawing on his experience as a goat herder, Vilane found employment as a game ranger at the Malolotja Nature Reserve in Swaziland, in 1993, which was where he met former British High Commissioner John Doble, who became his friend and benefactor after Vilane accompanied him on a guided walk.
Doble introduced Vilane to mountaineering by inviting him to join him in a climb in the Drakensberg in 1996, and was instrumental in finding the necessary sponsorships for Vilane’s first attempt at climbing Everest in 2003. Then South African President Thabo Mbeki congratulated Vilane on his achievement and grit. “In this, he has shown the heights we can all scale in life if we put our shoulder to the wheel and work at things without flagging. Sibusiso, you have done us proud!” he said. Mbeki awarded Vilane the Order of Ikhamanga (Bronze) in 2006, meaning Vilane can add the honorific ‘OIB’ to his name.
In 2005, Vilane again reached the summit of Everest, along with Sir Ranulph Fiennes and fellow South African mountaineer Alex Harris, this time scaling the peak from the North
Ridge, the more difficult and statistically less successful route. This second expedition was far more arduous than Vilane’s first attempt. Foul weather and ferocious winds stranded the expedition for almost two months, but they eventually reached the top. This accomplishment meant that Vilane became the first black African to ascend the world's highest peak twice and by two different routes. Three children's charities benefitted from this effort — the Birth to Twenty research programme at Wits University, the Africa Foundation and the SOS Children's Village in Swaziland.
Describing his descent to base camp from his second successful attempt at climbing Everest in his autobiography To the Top from Nowhere, Vilane reveals that he came very close to death. Having run out of food, water and oxygen, Vilane fell behind the rest of the group. Thankfully, the expedition leader noticed that Vilane had fallen behind, and sent a Sherpa to look for him. The Sherpa found him and gave him water and oxygen, saving his life. "The music of the devil was sounding very clear. The mountain was beckoning me to lie with her forever. She had so much energy, felt so alive, as if she was going to consume me like so many other climbers," he wrote. Vilane explains that he then understood that the overwhelming desire to rest and sleep had meant the end of many who had perished on the slopes of the mountain.
Vilane, who has been married to Nomsa since 1995, has been the African ambassador for the NGO Lifeline Energy (www.lifelineenergy.org) since 2006, and dedicated the 1 113 kilometres he trekked to the South Pole to the children of South Africa. This expedition raised enough money to provide 300 wind-up and solar-powered radios to households headed by children in Mpumalanga. "The future entirely depends on the education of children, their access to information to broaden their thinking and understanding of the ever-changing and challenging world,” he says.
Photos - Top: www.firstascent.co.za; middle & bottom: iStock
Win one of 3 double tickets to Kamers vol geskenke in Irene
Kamers is in its twelfth year of business, fully run by women, and making a bigger impact on SA design and entrepreneurship each year. In 2013, Kamers drew 41 600 visitors to three shows nationally. Visitors enjoyed the creative showcase of 250 hand-picked local exhibitors. Besides design, a very strong component of the Kamers experience is delicious food, wine and live music.
Fresh from the highly successful event in Stellenbosch at Webersburg in November, Kamers returns to Irene, Pretoria, at Open Window School of Visual Communication, from 2 to 7 December. Don’t miss SA’s pop-up treasure trove of handcrafted creativity, and come and enjoy a selection of SA's best originally designed wares, from jewellery, gourmet food products, ceramics and soft furnishings to décor accessories, garden gear, and designer clothing and accessories from suppliers who have been hand-picked for this event.
The Kamers team is well known for their innovative selection of creative talent and fresh product ideas, displaying work by independent design and craft creatives in the form of a large-scale pop-up retail event. An important aspect of the show is supporting and developing products and promoting creatives and young entrepreneurs. Kamers creates a platform that gives exhibitors maximum exposure for future business, thereby establishing their brands in the marketplace. The Kamers experience also inspires visitors to explore their own creative potential.
Come and experience design from the hands of SA’s freshest talent, food and wine from the finest artisans, and live music from the heart.
The first three readers to send an email to
[email protected] will each receive a double ticket to attend the Irene event.
Event details
• Venue: Open Window, Irene, Pretoria• Tuesday, Wednesday, Thursday and Saturday from 09:00 – 17:00, and Friday until 19:00• Sunday is SALE day, and the event ends at 15:00• Entrance: R60 at www.facebook.com/kamersvol and R75 at the gate
Photos - www.facebook.com/kamersvol; Geneviève Fundaro
“The choice of which type of account to use is available to everyone and many non-Muslims are choosing Islamic Banking.”
How is profit share different from interest?
Many people are confused about how the process of paying profit share on Islamic Banking accounts differs from the process for paying interest on conventional accounts. Although the end result is similar, the process is completely different.
Using a 32-day notice savings account as an example, the differences are:
Guarantees
In the conventional account the interest rate is fixed at the start of the financial year. It is impossible to predict profit, so no guarantees can be given on the amount of profit that will be paid at the end of each financial year. Instead, Islamic banks can show customers the history of what profit share has been paid out for the past few years on that type of account. This gives the customer a reasonable idea of what he can expect to receive in profit share.
In the conventional account both the capital and the interest are guaranteed. In the Islamic account neither capital nor profit is guaranteed. Islamic Law requires that in savings products the partnership between the bank and the customer includes shared risk and reward. There are many layers of oversight to ensure that the bank and the customers’ investments are safe but according to Islamic Law capital may not be guaranteed in a savings account.
Payment
Interest is paid monthly in the conventional account while profit can only be calculated and paid out at the end of the financial year. This means that conventional accounts can be closed at any time without the investor losing any of the interest due. The Islamic account should stay open until the payment date for profit share, in the case of Absa Islamic Banking, this is 25th January each year.
The conventional account pays interest according to a sliding scale, with people who have larger investments receiving a higher interest rate than those who have smaller investments. The Islamic account does not use a sliding scale. No matter how much or how little the customer saves, the profit share percentage is the same.
Investment Policy
Conventional banks can invest money wherever they believe they will get the best return. Islamic Banks only invest funds in those investments which comply with Islamic Law. That means no investment in any industry that is potentially harmful for mankind, such as the alcohol, tobacco and gambling industries among others. Islamic banks are also forbidden to invest in companies that have a high debt to equity ratio as part of the safeguards offered to clients in their partnership with the bank.
Transparency
When customers invest funds in the conventional account they know how much interest they will receive but they never know how much the bank profits from using their funds. Islamic Law requires complete transparency, so Islamic banks agree with the customer in the terms and conditions when opening the account that they will share profit with the bank a specific ratio. In the case of the 32-day notice account from Absa Islamic Banking, it is 60/40, with the bank, as the active partner in earning profit taking the larger share of profit. Knowing the ratio of profit sharing enables the customer to calculate the size of the bank’s share of the profit made.
Benefit to the Customer
Looking at the 2013 financial year, the conventional account from Absa paid out an average of 3% interest. The Islamic 32-day notice account has always paid above 5% as the customer’s profit share. For the 2013 financial year the profit share paid was 5,25%.
This list makes it clear that, although the act of investing money and getting a return on the investment is similar, the processes for interest from conventional accounts and profit share from Islamic Banking are completely different. The choice of which type of account to use is available to everyone and many non-Muslims are choosing Islamic Banking.
Photos - iStock
“An overdraft facility has the additional benefit of not adding another account that you need to manage and keep track of,”
Knowing your options when it comes to credit
No matter how carefully you budget or how well you manage your personal finances, we all need immediate access to funds in the case of an emergency or when unforeseen expenses arise.
Furthermore, knowing that you are able to cover essential debit orders at the end of the month when your income and expense cycles are out of sync can also provide you with valuable peace of mind.
Says Sharon Foyn, Head of Transactional Products at Absa: “Although there are many options available for providing additional funds when you need it, such as credit cards, personal loans or revolving credit, having a facility in place that can assist you in protecting the credit record that you have spent so long building and managing can prove invaluable when next you need to apply for credit, a store card, vehicle finance or a home loan.”
With the fast-paced lives we all lead, keeping track of how much money you have left in your current account is not always at the top of your to-do list, and an overdraft facility on your current account provides you with a safety net to assist you in meeting your financial obligations on a month-to-month basis.
Foyn explains that an overdraft from Absa is a flexible option that allows you the freedom to choose the type of facility that is best suited to meeting your specific financial needs and expectations:
• A fixed facility with a limit that revolves and is reviewed each year. You can keep using the funds, up to your agreed overdraft limit, as long as you make regular repayments. At the end of your contract year, your limit is renegotiated.
• A reducing facility with a limit that decreases as you pay it off each month. This is a good option if you know you’ll only need to borrow for a short while, and prefer not to have a revolving limit.
• An indefinite facility with a limit that revolves for an unspecified period. You can keep using the funds, up to your agreed overdraft limit, as long as you make regular repayments.
According to Foyn, another reason for choosing an overdraft facility is that it is a cost-effective and one of the cheapest credit options, as interest is only charged on the daily balance of the facility. “Because the interest rate applicable is risk-based, you are able to obtain a lower rate, as the assessment is based on your primary transactional account, namely your current account.”
An overdraft facility has the additional benefit of not adding another account that you need to manage and keep track of, and any deposits and credits on your current account act as repayment of the facility, including the monthly deposit of your salary. “With every deposit into your current account, you automatically have access to your full overdraft facility again,” concludes Foyn.
For more information or to apply for an overdraft facility, visit www.absa.co.za, contact
the Platinum Line on 0860 109 085, send an email to [email protected] or speak to
your Platinum Banker.
Photos - iStock
“Through our partnership with Property24, the largest property aggregator in the country, the Absa Homeowner App offers users access to the widest selection of available properties that's for sale or available to rent in the market.”
Platinum News
Find your dream home with the new smartphone App from Absa
Over the past few years, home buyers' searching patterns have become more reliant on technology with a consistent increase in the use of smartphones or tablets to find suitable properties.
The majority of marketed homes are now listed online where buyers can learn everything about a house before they even set foot in it. When they pull up to the curb, they've likely already experienced a virtual tour or seen photos of all its features and just want to see if it's as nice in real life as it looks online.
With the launch of the Absa Homeowner App, prospective home buyers can now conduct property searches, rate properties, calculate home loan repayment costs, moving costs and transfer duties using the App. The Absa Homeowner App can be downloaded onto iOS and Android smartphones as well as on iPads (selecting the "iPhone only" option in the App Store).
The App was customised in close collaboration with the award-winning Barclays digital development team and includes most of the latest functionality included in the Barclays UK App. "The Absa Homeowner App is a true example of the power of 'One Barclays' – customising global digital assets to benefit our retail customers in South Africa," says Carel Grӧnum, Head of Absa Home Loans.
"According to the Mobility 2014 research study, the use of apps on smartphones has shot up from 24% in mid-2012 to 43% in late 2013. In our sector, the app has become the single most significant tool driving real estate sales in South Africa. We view our Homeowner App as a great opportunity to make the lives of our customers easier as we strive to become the 'Go-To' bank and the destination of choice for all prospective home buyers."
"Through our partnership with Property24, the largest property aggregator in the country, the Absa Homeowner App offers users access to the widest selection of available properties that's for sale or available to rent in the market. Customers can search for their dream home from anywhere and it facilitates contact with an estate agent or the bank directly from mobile devices. Additionally, the App, with intuitive user interface, saves all properties that the user has viewed and added to their list of favourites. These saved properties can be accessed later without connecting to the internet," says Carel. "Home hunters will essentially create a unique profile which can be used to make a decision regarding a property to choose, and ultimately apply for finance from the bank with a single call. We wanted to the make this App as convenient and user-friendly as possible."
JP Farinha, CEO of Property24, says, "The Absa Homeowner App was an excellent opportunity for both businesses to work together on a tool that will support Absa's customers through the home buying process. Combining financial tools with mobile property search is yet another way that digital technology is making buying a new home more convenient for consumers. We believe this integrated App will add great value to consumers and we're excited to be partnering with Absa on this exciting initiative."
The Absa Homeowner App can be accessed by clicking on the links below:
• Apple App Store link itunes.apple.com
• Android link play.google.com
Photos - Absa
“Like furthering their education, opening a Student Silver Account provides young adults
with a solid foundation for future growth.”
Student Silver gives young adults the start they deserve
Children grow up so quickly that before you
realise it, they are embarking on further
education programmes after Grade 12.
Have you considered letting your child hit the
books to build the foundation of their future
career while we take care of their banking
needs with an affordable, feature-filled
Student Silver Account?
One of the first steps of letting your children
spread their wings as they mature into young
adults is to encourage them to open a new
bank account; an account that they can
manage on their own, while still providing you
with the peace of mind to know that they can
bank, anywhere and at any time, safely and
securely and should the needs arise, will be
able to withdraw cash from
one of the largest ATM
networks nationwide.
If they need to send money to
a friend on campus without
drawing cash, we’ve got that
covered; same thing if they
need to buy a textbook, pay for electricity or buy airtime and don’t have cash on them, we’ve got
that covered, too.
For just R17 a month, the Student Silver Account provides full transactional banking functionality
including an unlimited combination of day-to-day transactions when performed on any of Absa’s
digital channels. This includes cash withdrawals and deposits at Absa ATMs; balance enquiries and
ministatements; electronic funds transfers and account payments online and unlimited monthly
debit card swipes at a point of sale. We make it even easier to manage the monthly fees through
free access to Absa Online, cellphone and telephone banking. Student Silver Account holders also
enjoy free access to NotifyMe, an SMS account activity alert service.
Attending class, keeping up with social activities and setting aside time to study can be time-
consuming so we make it easy for Student Silver Account holders to buy airtime, perform a quick
CashSend, pay accounts and manage debit orders and scheduled payments all through Absa’s
convenient digital channels – whether it’s an ATM, Absa Online or the innovative new app for
smartphones. Security is further enhanced with the chip & PIN debit card, which allows students to
pay for goods directly at a point of sale without having to carry cash. Should they need cold hard
randelas in their hands, they can rest assured that they’re never going to struggle to find an Absa
ATM with more than 9 000 ATMs dotted around South Africa.
To qualify for the Student Silver Account, applicants need to be registered as a full-time student
studying towards an undergraduate or postgraduate degree or diploma, or qualifications of one
year or more.
Like furthering their education, opening a Student Silver Account provides young adults with a solid
foundation for future growth – give your children the head start they deserve and encourage them
to open an Absa Student Silver Account.
Photos - iStock
“All these innovative home financing solutions
form part of our strategic objective of helping our customers realise their dream of owning a
home.”
Innovating home finance solutions to make us the ‘Go-To’ home loans bank in South Africa
According to the recent census, South Africa
has 53 million people and 15 million
households, but only 6 million residential
properties.
Everyone shares the right to a decent standard
of living and an essential part of this right
beyond simple survival is access to adequate
housing.
As a bank we realise that homeownership is
more than just a roof over one’s head; it
connects families, provides a place for people
to get together in a social environment and
contributes to people’s well-being.
Absa Home Loans (AHL) is therefore
continuously seeking opportunities to grow the
home loans market through
innovative home financing
solutions. These financial
solutions are designed to
enable customers to purchase
their dream properties– a
place they can call home.
This is in line with AHL’s “Go-
To” strategic goal of making sure that we provide our customers with simple and accessible
financial solutions. We are aware that our customers’ needs are changing in the digital age, as they
look for banking solutions that can meet their needs in the moment or at a particular life-stage,
and on a platform they choose to use.
“We are putting the customer at the heart of everything we do. Absa is committed to ensuring that
we widen entrance to homeownership while also educating prospective buyers,” says Carel
Grönum, Absa Home Loans Executive Head.
Furthermore, AHL has looked at the growing First-time Home Buyers (FTHB) segment as an
important market and came up with an innovative and first-of-its-kind financial solution – Family
Springboard.
Family Springboard is an offering designed for young FTHB in which family members (or friends)
can help each other buy their dream home. Young FTHB often turn to close family, normally
parents or family friends, for assistance with paying a deposit and often the family or friends want
to help but do not want to lose their savings. This is where Family Springboard comes in as it
formalises this relationship.
Grönum adds, “We know that buying a property is the single biggest and most important
investment that most people will make in their lifetime. Yet, many first-time home-owners have not
been exposed to homeownership and financial management – largely as a result of South Africa’s
historical legacy on property ownership, access to finance and education. We believe we have a role
to play in ensuring customers are properly informed and educated regarding their investments.”
Having recognised the information gap in the market place, Absa has, in conjunction with the
French Development Agency, established the First-time Home Buyers (FTHB) educational
programme, whose sole purpose is to impart knowledge about the process involved in buying and
owning a property.
The FTHB programme will educate 17 000 first-time buyers by the end of December 2014. Some of
the topics covered by the programme will include financial management, sustainable
homeownership, repayment options and everything related to buying a property.
Moreover, AHL recently launched an online tracking capability that will enable customers to track
the status of their home loan application anytime and anywhere, affording them convenience.
All these innovative home financing solutions form part of our strategic objective of helping our
customers realise their dream of owning a home.
Photos - Shutterstock
“Your credit card is equipped with the highest possible security measures, so you can use it
worldwide at ATMs and any points of sale.”
Spend the holidays with your Platinum Credit Card
Your Platinum Credit Card is your ticket to
making your holidays unforgettable. Use it to
pay for flights, transport, accommodation and
more.
With free basic travel insurance and access to
Bidvest Premier Airport Lounges, it’s your
perfect holiday companion.
It’s almost time for the holidays and we’re
sure you’re looking forward to spending some
quality time with friends and family. If you’re
planning a trip away, locally or internationally,
your Platinum Credit Card is your ticket to an
excellent holiday.
It’s the perfect way to handle all your travel
arrangements from booking airline tickets to
accommodation, with special
offers from the Visa luxury
hotel collection, Visa Privileges
and MasterCard Moments, as
well as discounted car hire
from Hertz.
From departure to arrival
If you’re planning on flying to your perfect destination, remember that your credit card gives you
access to any Bidvest Premier Airport Lounge. To qualify for free access you need to have spent a
total of R5 000 on point-of-sale purchases with your Platinum Credit Card during the month of your
lounge visit. Alternatively, you can spend R15 000 on point-of-sale purchases over three
consecutive months before or during the month of your visit. You can also invite guests to join you
at a discounted rate.
We’ve got you covered
When you use your credit card to pay for international flight tickets, you’ll automatically get free
basic travel insurance that includes emergency medical and associated expenses, personal accident
cover and Absa Travel Assistant. You can even choose to upgrade to comprehensive cover
according to your personal requirements.
You also have free Lost Card Protection, so if your card is lost or stolen while you’re away, you
won’t be held liable for fraudulent transactions that may occur after you’ve reported it.
Our holiday gift to you
As a Platinum Credit Card holder you won’t be charged any fees on your travel-related transactions
and you get up to 57 days’ interest-free credit on your purchases, including holiday packages. Of
course, as an Absa Rewards member, you’ll also get cash back in your pocket for all your holiday
purchases and on any fuel you purchase from Sasol.
We’ll take care of it
Your credit card is equipped with the highest possible security measures, so you can use it
worldwide at ATMs and any points of sale. You’re even secure online when you shop at a 3D Secure
Online Merchants protected by Verified by Visa™ and MasterCard SecureCode™.
Forgotten something?
If you forget your PIN just as you’re about to pay, don’t panic. Just call 0860 109 085 and follow
the voice prompts to retrieve your code, or you can login to Absa Online 24/7.
Remember, you can always call us on our dedicated 24-hour Platinum Line on 0860 109 085 or
011 501 5006 internationally and we’ll be there to give you any assistance you need.
So, when you start packing for your holidays this year, don’t forget to pack your Platinum
Credit Card first!
• For more information on the Platinum Credit Card visit www.absa.co.za/platinumcreditcard
• For more information on Bidvest Premier Airport Lounges visit www.bidvestlounge.co.za
• For more information on Visa Privileges visit www.visaplatinum.co.za
• For more information on MasterCard Moments visit www.pricelessafrica.com
Travel from A to Z with your Platinum Credit Card
• Access to Platinum MasterCard Moments
• Access to Visa Privileges
• Bidvest Premier Airport Lounge access
• Cash back on petrol at Sasol with Absa Rewards
• Discounted car rental from Hertz
• Free basic travel insurance with the option to upgrade
• Visa luxury hotel collection offers
Terms and conditions apply.
Photos - iStock
Subaru confidence - yours from only R4 252 per month
Get the Subaru XV with a 5 year/120 000km maintenance plan from only R4 252 per month.
Photos - Absa
Avios and the British Airways Executive Club
In 2013, the Avios Travel Rewards Programme
was launched in South Africa, in partnership
with some of the biggest brands in the country
- Absa, Pick n Pay, BP, and Lew Geffen
Sotheby’s International Realty, to name just a
few.
For more than two decades, Avios has been
developing innovative ways to collect rewards
with some of the biggest consumer brands,
like British Airways, American Express, Tesco,
Chase, Avis and HSBC.
Avios was launched in 2011, signalling the
beginning of a new journey towards more
exciting, more flexible rewards. Avios is the
shared global reward currency used by
International Airlines Group (IAG) reward
programmes: the Avios Travel Rewards
Programme in the UK and South Africa, British Airways Executive Club, and Iberia Plus.
Today, Avios operates travel and leisure reward programmes and collection opportunities in
markets around the world, including the UK, Europe, North America, the Middle East, Asia, Africa
and the Caribbean.
Avios has over 5.5 million active members collecting
Avios with the Avios Travel Rewards Programme,
British Airways Executive Club and Iberia Plus.
Over 50 000 people fly using their Avios each month.
You could be one of them!
Absa Rewards members can convert their Cash
Rewards to Avios before 30 November 2014 to
get 25% more! That’s 125 Avios for R10 Cash
Rewards.
Offer details
Absa Rewards members redeeming their Cash Rewards
between 1 – 30 November 2014 will get 25% more.
Get 125 Avios for every R10 Cash Rewards redeemed.
Photos - Avios; Absa
Absa Rewards - exclusive offers from Sekonda and Waltons
Spoil yourself and your loved ones with these
exclusive offers from Sekonda and Waltons,
brought to you by Absa Rewards.
Buy yourself or that special person in your life
the gift of time at these amazing discounted
prices, exclusively for Absa Platinum
customers.
Get yours at www.sekonda.co.za and insert
the promotional code at check-out.
Offer details
• Promotional code: APLAT
• Offer valid from 1 November to 30 November 2014
• Stock is subject to availability
• Offer is valid for the promotional period only
• Free delivery within 3-4 working days
• Absa Rewards members will earn 20% Cash Back on all purchases
• Exclusive to Absa Platinum clients
Avoid the Back2School rush with Waltons
Buy your 2015 school stationery supplies from Waltons
between 1 and 30 November 2014 and you will not only
earn 7% Cash Back, you could be one of 5 winners drawn
per store to get your purchase for free, or win instant in-
store discounts!
Offer details:
• Offer valid from 1 November - 30 November 2014
• Absa credit card customers will automatically be entered into the lucky draw for all
purchases made between 1 November and 15 December 2014
• The scratch card competition applies to in-store cash, cheque and credit card purchases, and
only to Back2School catalogue merchandise (excludes on-line purchases and system orders
via participating schools)
• The in-store scratch card elements are not exclusively for Absa customers, and will be
managed by Waltons
• Absa Rewards members will earn: 7% Cash Back for purchases from 1 – 30 November only,
and their normal Partner-earn of 3,5% from 1 December onward
Photos - Absa; www.sekonda.co.za; www.waltons.co.za
Exclusive offer from The South African Gold Coin Exchange
Spend R10 000 or more on collectables and
receive a FREE GIFT to the value of R1400.
Gold is the one commodity which has been
traded for more than 6 000 years and is as
universally valued today as it was then.
Shares, property, currency and gold are all
similar in that they all hold value in the eye of
the beholder.
The question to ask yourself is - are you a
value collector, value investor, a hedge fund
player, speculator or hoarder? Some say gold
is only for fools, but with a history expanding
for over 6 000 years, it has proven itself to
offer results not easily dismissed by global
investors.
So where do you start? Here are seven key tips for everyone.
• Start small: whether R5 000, R10 000 or R15 000,
depending on what you can afford – but start. Oak
trees grow from acorns.
• Start today and buy just one item - don't put all your
spare cash into gold today.
• Over time you will buy more and more coins as you
become more comfortable and familiar with the
process and you will experience the benefits of Rand
cost averaging.
• Buy what you like. If it appeals to you - buy it and
lock it away. Whether it's for the Liliesleaf Raid 50th
Anniversary, the Queen's Diamond Jubilee, the
Anniversary of Nelson Mandela winning the Nobel Peace Prize. Don't put all your money into
one subject matter. A balanced collection of coins is interesting to accumulate and ultimately
lucrative.
• Because it's a process and you have to start
now, make a timetable as to when you will buy,
whether it's monthly, quarterly or bi-annually – this
will ensure your collection grows accordingly. Buy,
irrespective of the price – as they say – just do it.
• Spread your collection between bullion (such
Krugerrands which are redeemable worldwide) and
collectable coins and medallions (limited
mintage coins commemorating a person or event
such as the Olympics or Mandela's achievements)
or other old numismatic and very rare coins, for
example, the ZAR coin.
• Collect with purpose. Whether it is for your
children or grandchildren, for better times or worse
or for a new property further down the line. Over the past decade gold has done particularly
well having quadrupled in value.
Buy for fun. It is important to know that a collection that you
have completed for fun can always be converted into money,
if the need ever arises. If you're buying with intention of
selling within three months at a profit, it won't work. In time
and over time you can benefit financially but even coin
collections need to collect dust, like wine bottles, before they
reveal their true value. Collectors usually profit more than
investors – collectors' ambitions are to complete their
collections.
Offer terms and conditions
• Promotional code: ABSARewardsNov14
• The free gift is a 1oz Mandela Silver Medallion
• Offer available at regional South African Gold Coin
Exchange offices in Cape Town and Johannesburg and
all Scoin shops locally
• Valid from 1 November 2014 to 30 November 2014
• One per customer
• Not valid with any other promotions or sales of Krugerrands
• Only valid for Absa Platinum Banking customers
• Absa Rewards members will earn 2.5% Cash Back
• Visit www.scoinshop.com or www.sagoldcoin.com for terms and conditions
Photos - www.sagoldcoin.com
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NCRCP7
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