Before we can answer whether it is worth it getting the FNB overdraft we first of all need to make sure you understand what an overdraft is all about.
So, what is an overdraft facility? An overdraft facility is a credit agreement made with a bank that allows an account holder to use or withdraw more money than what they have in their account up to the approved limit.
Two key things that we can see from this definition of an overdraft facility are:
1 You have to be an account holder
2 There is an approved limit
So, in relation to what we know about a standard overdraft facility, how does the FNB overdraft facility compare?
Well, for starters this facility will help you manage your cash flow. There is nothing as bad a having a payment or debit order bounce because there are not funds in your account. With this facility in place, payments will still be honoured by the bank even if you have no funds in your account up to the pre-agreed limit. The key is to stick to the agreed amount to avoid payments being rejected.
The facility does not come automatically with every FNB account. This means if you are interested in the facility you will have to apply for it. Once approved, it will be linked to your FNB cheque / transactional account.
How much is approved will depend on your individual credit profile and affordability.
Is It Worth Getting The FNB Overdraft?
We can say yes with confidence, and we will give you are reasons why:
Well life is full of surprises, and you will never know when you meet an emergency. With an overdraft facility in place, you will be better prepared to meet any unforeseen expenses.
FNB will only charge you for the facility if you use it. In other words, if you don’t use it you will not be charged
You will only be charged interest on the amount used.
The facility comes with an option to take out overdraft debt protection. This is recommended as it will cover any amount outstanding in the event of permanent disability or death.
How Does One Qualify For The FNB Overdraft Facility?
This is a very good question. Now that we have seen that it is a good facility to have in place it is time to discuss the qualifying criteria.
To qualify one needs to have an active FNB cheque account.
You need a South African citizen who is 18 years or older.
If you are married in community of property, spousal consent will be required.
Documents such as your ID, proof of residents and 3 month’s payslips will also be required during application.
Application can be done online by visiting the FNB website www.fnb.co.za. This gives you the convenience of being able to apply from anywhere and at any time. You can also contact them directly if you need more information.
So, in conclusion, if you meet the criteria mentioned above, we encourage you to have this facility in place. If you do not have an FNB Cheque account, why not open one today and get the facility which helps to manage your cash flow.