Absa Foreign Currency Account: Complete Guide

Need to manage your money in multiple currencies? You might be a digital nomad or a freelancer, needing to get paid by clients in other countries. Or you might be an international student, a traveller or someone who has family in other countries.

Whatever your situation, you could find a foreign currency account very useful. But which is the right one to choose?

Below, we’ll be looking at the Absa foreign currency account, also known as the Absa Currency Investment Account. We’ll run through how it works and what features it offers, as well as fees, exchange rates, currencies and more.

We’ll also show you an alternative that could be a better fit for your needs. Open a Wise multi-currency account and you can hold money in 40+ currencies, as well as sending money worldwide for low fees and great exchange rates³.

*Currently users in South Africa can only receive payments in ZAR. Support for other Wise products coming soon.

How does a foreign currency account work?

The Absa Currency Investment Account works a little differently to some kinds of foreign currency account. In most cases, these accounts let you hold a balance, send and receive in a currency other than your home currency. Multi-currency accounts such as Wise’s let you manage lots of different currencies at once.

But at Absa, its foreign currency account is designed for investing. It’s aimed at people looking to diversify their investment portfolio, by holding funds in multiple currencies.

According to Absa, this helps investors protect against fluctuations in the rand (ZAR) exchange rate, as well as offering an affordable way to invest. However, you can still make withdrawals, payments and transfers with this account. So you’ll have access to your money when you need it.

We’ll look at the available currencies next. First, here’s all of the key facts about the Absa Currency Investment Account account at a glance:

Feature	Offered by Absa Currency Investment Account
No of available currencies	17
Interest	Yes
Credit/overdraft facilities	No
Debit card	No
Rewards/benefits	None
Deposits and withdrawals permitted	Yes
International payments	Yes

USD account, Euro account, other currency account

You can open an Absa foreign currency account in one of 17 currencies. Among the most popular options is the Absa usd account, also known as the Absa dollar account.

But here’s the full list of available currencies you can choose from:¹

• United States dollar (USD)
• British pound (GBP)
• Euro (EUR)
• Australian dollar (AUD)
• Swiss franc (CHF)
• Botswana pula (BWP)
• Indian rupee (INR)
• Swedish Kronor (SEK)
• Canadian dollar (CAD)
• Norwegian krone (NOK)
• New Zealand dollar (NZD)
• Danish kroner (DKK)
• Japanese yen (JPY)
• Singapore dollar (SGD)
• Saudi riyal (SAR)
• Mauritian rupee (MUR)
• Hong Kong dollar (HKD)

Mid-market rates help you save with Wise’s multi currency account

Holding and sending foreign currencies in a single account can be tricky, expensive, and simply difficult to manage.

Wise is a money service business, which offers a multi-currency account, international money transfer services and a debit card, among other products⁶. Need to make an international money transfer to South Africa? You can do it in just a few clicks with Wise, for low fees and the mid-market exchange rate³.

As a bank alternative, Wise makes it easy and cost effective, letting you hold, send and receive multiple currencies all in one place. You can manage your money in 40+ currencies at once, and convert between them whenever you need to.

You will find that it is also easy⁵ to open a Wise account(unlike with some banks) and you can do everything online.

Whether you’re a traveller, expat, freelancer or have family overseas, Wise is a great solution to your multi currency account needs. There’s even a handy Wise app, so you can track your transfers and manage your account on the move.

How to open a Absa foreign currency bank account?

To apply for a Currency Investment Account, you’ll need to be an existing customer with an Absa current account.

If you’re new to the bank, you can complete the online contact form on the Absa website and a customer service representative will call you back. They’ll talk you through the requirements to open a current account and then a foreign currency account.

If you already bank at Absa, you can apply for a Currency Investment Account online.

Here’s what you need to do:²

1. Go to the Absa website and log into your online banking profile
2. Click ‘Apply’
3. Expand the ‘International banking solutions’ tab
4. Click ‘Open account now’
5. Accept the Surecheck 2.0 pop-up message
6. Complete the online form, proving your details when requested
7. Check all the details and click ‘Open account’ to confirm
8. Your new account details will be sent to you by SMS.

Absa foreign currency account fees and charges

Before opening any kind of new account, you’ll want to know about fees and charges. So, how much does it cost to open and use the Absa Currency Investment Account?

The good news is that there’s no monthly or annual account maintenance fee, and there’s also no minimum deposit required to open the account.

If you want to send or receive money, the following fees will apply:¹

Transfer type	Absa fee
Depositing money into the account	- Free for online transfers - 0.70% for in-branch transfers
Transferring money out of the account	- Free for online transfers - 0.70% for in-branch transfers
Sending international transfers (SWIFT)	- 0.55% + electronic fee of R100 for online transfers - 0.75% + electronic fee of R185 for in-branch transfers
Receiving international transfers (SWIFT)	- 0.55% for online transfers - 0.75% for in-branch transfers

When it comes to converting currency, Absa uses its own exchange rates. You can see the full list of rates here, although the bank advises that you check with your local branch for the latest rates.

**These rates are likely to include a mark-up on top of the mid-market exchange rate. **The mid-market exchange rate is what banks use when trading currency with each other, and it’s believed to be one of the fairest rates you can get.

When you send money with Wise, you’ll always get the mid-market exchange rate with no margins or mark-ups.

Debit/credit card features for foreign currencies

There is no debit or credit card available with the Absa foreign currency account. If this is something you really need for convenient spending in multiple currencies, you might need to check out a different provider.

Absa foreign currency account requirements

To apply for the Absa Currency Investment Account, you’ll need to provide the following during your application:²

• Your official South African identity document
• Your tax number
• Details of your Absa current account.

You’ll also need to be over the age of 18 to be eligible for this account.

How to transfer funds to and from a Absa foreign currency account

To deposit money into your new Absa foreign currency account, you’ll need to follow these steps:²

• Login to your Absa online banking profile
• Click the ‘Payments’ tab
• Expand the ‘Inter-account transfers’ tab
• Select the cheque or transactional account linked to your profile where it says ‘from account’
• For ‘to account’, select your new Currency Investment Account
• Enter the amount you’d like to deposit
• Complete all of the fields and follow the four-step process to confirm your deposit.

To make a payment out of the account, you should be able to use online banking or visit a branch - although be aware that fees are higher when you set up transfers in a branch.

Interest on Absa foreign currency account

The Absa Currency Investment Account does pay interest on currency balances, although the bank doesn’t publish the exact rate.

Interest is based on the London Interbank Bid Rate (LIBID) for the investment currency, minus a margin taken by Absa. It’s payable monthly, and in arrears. You’ll receive it in the main currency of the account.²

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And that’s it - everything you need to know about the Absa Currency Investment Account. We’ve covered features, currencies, interest, fees, exchange rates and how to open an account.

So after reading this, you should be able to make an informed decision on whether this is the right account for your needs.

Just remember to compare all of the alternatives first. The Wise multi-currency account could be a better fit for your needs. You can open it online, manage 40+ currencies at once and send money worldwide for low fees and great exchange rates³.

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Sources:

1. Absa - Pricing Guide - Retail Banking Products
2. Absa - Currency Investment Account
3. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.
4. Transaction speed claimed depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions.
5. Eligibility is subject to verification of customers identity. Wise may request additional documents to verify a customer's identity.
6. Please note that certain products or features may not be available in all regions. Please visit www.wise.com to check for availability and learn more about our offerings.

Sources last checked on date: 08-Sep-2023