DEFINITIONS

In these terms and conditions, unless the context requires otherwise, the following terms have the following meanings:

‘account’ means your investment account to which these terms and conditions apply;

‘agreement’ means the agreement between the parties as constituted by these terms and conditions and those contemplated in clauses 15 and 17;

‘ATM’ means automated teller machine;

‘us/we/bank’ means Nedbank Limited, registration number 1951/000009/06, with registered address at Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, and postal address at PO Box 1144, Johannesburg, 2000;

‘card’ means a magnetic strip card that we issue to you;

‘card transaction’ means any cash withdrawal, payment, interaccount transfer or deposit transaction made with the card from or to your account by using an ATM, SST or other electronic device;

‘you/your’ means the client in whose name the account is opened;

‘digital channels’ include internet banking, the Nedbank App Suite™ and Wireless Application Protocol (WAP);

‘interest paid in advance’ means interest that is paid at the start of the term of the deposit (one day after opening/after the clearing period if a cheque deposit), according to the interest frequency selected;

‘interest paid in arrear’ means interest that is paid on the expiry date of the deposit or on an interest date you choose if payment is required monthly, quarterly or half-yearly;

‘market rate’ means the rate that is determined by market circumstances, including the prevailing supply of and demand for money, competitor activities and Nedbank’s funding requirements;

‘party’ means you and/or us;

‘PIN’ means personal identification number. This is a secret number that you select that only you know. This number must be encoded on the card by us and is used as a means of user identification;

‘prime rate’ means the prime overdraft rate of interest charged by us from time to time, which is our publicly quoted prime lending rate as certified by any bank manager, whose authority need not be proved;

‘product specifications’ means specific features of products offered by us, including minimum deposits, minimum balances and service fees;

‘source account’ means the account from which the capital/additional capital will be debited as authorised by you for the purposes of reinvestment; and

‘SST’ means self-service terminal.

INTERPRETATION

In this agreement:

clause headings are for convenience and are not to be used in its interpretation;

unless the context indicates a contrary intention, an expression that denotes:

any gender includes the other genders;

a natural person includes a juristic person and vice versa; and

the singular includes the plural and vice versa; and

any number of days will be determined by excluding the first and including the last day or, where the last day falls on a day that is not a business day, the next business day.

INVESTMENT RECORD

When an investment account is opened (or at any later stage), we will issue you with an investment record containing the terms and conditions applicable to the account you have chosen.

The investment record will be issued in your name.

Your account is not transferable to another person or entity.

DEPOSITS

If any negotiable instrument (eg a cheque) is deposited into your account, the proceeds will be credited to your account but will be available only when the negotiable instrument has been honoured (within 10 consecutive days). If the negotiable instrument is dishonoured, your account will be debited accordingly and we will return the negotiable instrument to you at your own risk.

You agree that we will process the cheque(s) for clearance by making use of any clearing system used by clearing banks.

If a cheque deposited by you is returned unpaid, we will inform you thereof within a reasonable period.

We reserve the right to limit cash deposits and to impose a cash deposit fee at our discretion.

Interest will only start accumulating on your account from the date on which any deposit is made and has been cleared (if this differs from the opening date of the account).

We reserve the right to set a maximum amount that may be invested in any particular investment product.

Where funds are deposited into an investment account from another bank, you will earn interest from the date that the funds reflect as cleared in the investment account, and not from the date the funds are processed.

Where funds are deposited into an investment account through a stop order, you will earn interest from the date that the funds reflect as cleared in the investment account, and not from the date the funds are processed.

CHOICE OF PRODUCT

You must choose the investment product you wish to invest in. We will not provide any income tax or any other advice pertaining to your choice, and you should seek independent tax advice from a suitably qualified consultant.

Investment products cannot be converted or transferred from one product type to another, unless it is permitted in terms of specific product rules.

INTEREST

We are entitled to determine, at our discretion, the interest rates applicable to investment products. These interest rates are available on request at any of our branches and are always quoted on an annual basis.

With the exception of fixed-deposit investment accounts, interest rates on investment accounts are subject to change according to changes in the market rate and may also be linked to the prime rate.

Interest will be calculated daily on the basis of a year of 365 days (whether or not the year is a leap year) and on the daily balance in the account.

Where interest is paid in advance on certain fixed-deposit products, the interest rate will be present-valued using the nominal rate for the selected term as a discount rate.

In the event that the date of the initial deposit differs from the date of opening of the account, and a rate change has occurred in the interim period, the interest rate applicable will be the rate as at the date when the initial deposit cleared on the account (and not the date on which the account was opened).

Where you deposit less than the minimum amount required for a particular investment product, you will not earn any interest on those funds until the minimum amount required in terms of the product requirements is deposited.

You have the right to request that the interest on the investment account be either capitalised (provided the product allows this) or paid out at the frequency allowed for the specific investment account. If the interest is paid out to you monthly, the investment will yield interest at a nominal rate. If the interest is capitalised, the investment will yield interest at an effective rate. The effective rate will be higher than the nominal rate due to the compounding effect of capitalised interest. You must exercise this right when you apply for the investment account. The interest rate on a fixed deposit will directly be linked to the interest frequency selected for the amount invested at the time. No monthly capitalisation of interest occurs on fixed deposits, unless the product specifically allows this. Interest can, however, be capitalised on expiry of the deposit.

If the interest payment date is a Sunday or public holiday, the interest will be paid out on the next business day.

You are entitled, subject to product specifications, to choose the frequency at which interest has to be paid out or capitalised. Interest can be paid out or capitalised monthly, quarterly, half-yearly, annually or on the expiry date of the investment period, depending on the investment product type into which the funds are deposited.

If the ‘interest paid in advance’ option is selected (applicable to certain fixed-deposit products only), then interest will be paid at the start of the term of the deposit, according to the interest frequency selected. Interest will not accumulate during the remaining term of the deposit.

Where interest is paid monthly, the interest payment day may not be changed and where the ‘interest paid in advance’ option has been selected, this may not be changed to ‘interest paid in arrear’, or vice versa, during the term of the deposit.

Interest paid in advance will be paid to the interest disposal account provided by you one day after the initial deposit has cleared and thereafter on the anniversary of the initial interest payment according to the interest frequency selected.

The exception is where a cheque deposit is made, in which case the first interest payment will be made after the cheque has been cleared.

INCOME TAX CERTIFICATES

We will issue an income tax certificate [IT3(b) and/or IT3(s) certificate] after the end of February each year.

We will issue an IT3(s) certificate regardless of the amount of interest earned on your investment account.

The IT3(b) and/or IT3(s) certificate indicates the amount of interest paid out to you in the particular year. IT3(b) certificates are issued only where a minimum amount of interest, as prescribed by the South African Revenue Service (SARS) from time to time, or an amount in excess of the minimum amount has been earned.

In the case of all investments where interest is earned or accrued all interest on an investment must be declared in the tax year during which the interest is earned or accrued. Your IT3(b) and/or IT3(s) certificate will therefore reflect all interest earned or accrued for the tax year, irrespective of whether the interest is paid out in the same tax year.

We will send a copy of the IT3(b) and/or IT3(s) certificate to SARS.

In the event that interest has been paid in advance on certain fixed-deposit products we will issue the IT3(b) and/or IT3(s) certificate in the tax year that the interest was paid and not in the tax year of the expiry of the deposit, should this differ from the tax year in which the interest was paid.

If early withdrawals occur on deposits where the interest has been paid in advance and a portion of such interest has been reversed, the IT3(b) and/or IT3(s) certificate may already have been issued for the original interest amount paid out. In this case the onus is on you, the taxpayer to apply to SARS for the reopening of the assessment in terms of section 79A of the Income Tax Act.

STATEMENTS

We will at our discretion, issue regular statements relating to your account, subject to the relevant product specifications.

If the type of account does not necessitate a monthly statement, you may obtain a statement printout at a branch or use any of our digital channels, if and when required.

As soon as you receive a statement, you must check it for accuracy. If there is any discrepancy, you must report it to us within 15 days of receipt of the statement, otherwise the statement will be deemed to be correct.

If there is a dispute in respect of the items appearing on a statement, our records will be prima facie proof of such items.

EARLY WITHDRAWAL

The bank may allow the client to withdraw the invested money before the investment matures.

If the bank allows the client to withdraw the invested money before the investment matures, the bank reserves the right to charge an early-withdrawal fee as compensation for income the bank would have earned on the investment if it had not been withdrawn early.

The client acknowledges that this early-withdrawal fee is reasonable.

The bank will consider circumstances such as the death of the accountholder, insolvency or severe financial hardship when deciding to charge the early-withdrawal fee.

The bank will deduct the early-withdrawal fee from the capital amount before the capital is paid to the client.

The early-withdrawal fee will be calculated by using the formula below:

9.6.1	For notice deposits

An early-withdrawal fee will be calculated as a percentage of the amount the client wants to withdraw, based on the number of days the money has been invested:

Days invested	Nedbank fee percentage
1 to 7	2,00%
8 tot 14	1,00%
15 tot 21	0,50%
22 tot 31	0,25%
32	0,00%

9.6.2	For fixed-term deposits

The early-withdrawal fee for fixed-term deposits will be calculated as follows:

Penalty interest fee + undue-interest fee + administration fee

Please see below for an explanation of the terms

used in this calculation:

Term	Explanation
Penalty interest fee	One tenth of the interest rate that applies to the investment (at least 1%) x requested withdrawal amount x unexpired investment term.
Undue-interest fee	Interest rates for investments over longer terms tend to be higher than for investments over shorter terms. If the interest rate we have given you for the full term of your investment is higher than the interest rate that would have applied for the investment over the shorter term (ie the term that your funds were actually invested with us), you will pay an undue-interest fee, which is calculated as follows: Capital amount x undue-interest differential/365 x number of days the money has been invested.
Undue-interest differential	The undue-interest differential is the interest rate for the full term of your investment – the interest rate that applies to the actual term of your investment.
Administration fee	R100.

CESSION OF INVESTMENTS

You may not pledge or cede your rights arising from your investment as security for loans without consent from us, which consent will not be unreasonably withheld.

CONFIDENTIALITY AND DISCLOSURE OF INFORMATION

Your personal information will be treated as confidential and will not be disclosed, except in the following circumstances:

when we are legally compelled to do so;

where it is in the public interest to disclose;

where our interests require disclosure; and

where disclosure is made at your request or with your written consent.

DOMICILIUM CITANDI ET EXECUTANDI

For all purposes under this agreement the parties choose the following addresses as their respective domicilia citandi et executandi:

Us:	Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton; and

You:	the last known physical address supplied by you.

Any legal process to be served on any party may be served on that party at the address specified in 12.1.

Any notice or other communication to be given to any party in terms of this agreement will be valid and effective only if it is given in writing.

A notice to any party that is delivered to the party by hand at the address specified in 12.1 will be deemed to have been received on the day of delivery, provided it was delivered to a responsible person during ordinary business hours.

Notwithstanding anything to the contrary in this clause 12, a written notice or other communication actually received by any party will be deemed to be adequate notice or communication to such party, even if such notice or communication was not sent to or delivered at the address specified in 12.1.

Any party may, by written notice to the other party, change the address specified in 12.1 to any other address (other than a post box number), provided that the change will become effective on the seventh day after receipt of the notice.

It is your responsibility to ensure that we are kept informed of any changes to your personal information, including address and contact details.

LIABILITY

Subject to applicable law, we will not be liable to you for any damage or loss that you may suffer as a result of:

any person (due to your negligent action or omission) gaining unauthorised access to any information or data;

incorrect information being given to us or any person, including any credit bureau (provided that such information is not bank information and is sourced from a third party); and

a delay, failure or malfunction of any ATM or other device (electronic or manual) you use to effect card transactions;

except where such damage or loss arises directly or indirectly from the gross negligence or wilful misconduct by us (or any person acting for or controlled by us).

TERMINATION

We may, at our discretion, close the account at any time, but may not do so without giving you reasonable prior notice at the address specified in 12.1.2. However, in the case of fraud or suspected fraud on the account, we reserve the right to protect our interests if we have to act against you.

AMENDMENT OF TERMS AND CONDITIONS

We may, at our discretion, change any of the terms and conditions contained herein at any time. We will give notice of any material changes by notices in our branches.

Any change to the terms and conditions does not constitute a novation of the agreement or of any previous obligation by or to us.

JURISDICTION

At the option of us, any claim arising hereunder may be recovered in any magistrate’s court having jurisdiction, notwithstanding the amount of the claim, and you hereby consent to the jurisdiction of the magistrate’s court.

CERTIFICATE OF BALANCE

The nature and amount of your obligation and the applicable interest rate will be determined and proved by a certificate or any other written evidence (‘certificate’) purporting to have been signed by a Nedbank manager, whose capacity or authority does not have to be proved. Unless the contrary is proved, the certificate will on the production thereof be binding and be prima facie proof of the content thereof and of the fact that the amount is due and payable. The certificate will be valid as a liquid document (alternatively proof of a liquidated amount) in any competent court or for any other purpose.

GENERAL TERMS

Before opening the account we may enquire about your financial position at any time and you must provide us with any financial or any other document that we may request from you from time to time.

We may make enquiries about your credit record with any credit bureau or any other party.

We are required in terms of FICA and by any law or otherwise to satisfy ourselves as to your identity, proof of residence and suitability as an accountholder. We may refuse to open an account or accept a deposit.

If we allow you any latitude or extension of time, this is not and must not be understood as a novation or waiver of our rights in respect of these terms and conditions, and it will also not be, or be the cause of, a defence of estoppel against us.

You hereby consent that we may combine any or all accounts you may have with us, without notifying you. However, if we combine only some of your accounts, we will still have the right to claim from you any amount in respect of an account that is not part of the combined accounts.

These terms and conditions, read with the application, as changed or replaced by us from time to time, together with any other additional terms and conditions, as changed or replaced by us from time to time, will, together with the investment record, form the whole agreement between the parties in connection with the account, and are accepted by the parties.

Product specifications, as changed by us from time to time, will apply to the agreement.

The terms of this agreement will be deemed to be, in respect of each part of the agreement, entire, separate, severable and separately enforceable in the widest sense from the rest of the agreement.

Should any provision of this agreement be found by any competent court to be defective or unenforceable for any reason whatsoever, the remaining provisions of this agreement will continue to be of full force and effect.

USE OF CARDS

You may also, subject to the relevant product specifications, use your card through the relevant ATM, SST or other electronic device through which the account can be accessed.

You will have access to an ATM and/or SST by using your card together with your PIN. When using a PIN and card, the you should ensure that:

no one other than you uses the card and PIN;

reasonable steps are taken to keep the card safe and the PIN secret at all times, and that nobody, not even a bank employee who offers to help, is told what the PIN is; and

the PIN is never written down or recorded without being disguised.

When you receive the card, we will encode the card with a PIN, which will give you the right to deposit and/or withdraw cash and/or make use of services by means of the card at a compatible ATM, SST or other electronic device.

By keeping and/or using the card you accepts all these terms and conditions.

You may not cede any of your rights or delegate any of your obligations in respect of the card.

The card is valid from the time it is issued until the account is closed by any of the parties.

We are the owner of the card, and when the account is closed for whatever reason, you must give the card back to us or provide us with written confirmation that your card has been destroyed;.

If the card:

is lost, stolen or used wrongfully; or

is used by any person other than by you;

you must notify us immediately by contacting our Card Division or at any of our branches. You must also notify us immediately if anyone obtains knowledge of your PIN or if you have any reason to believe or suspect that this has happened. If you have notified us verbally, you must confirm your verbal notification in writing within 24 hours after the verbal notification. Delay in notifying us of the loss or theft will be deemed to be negligence on your part. It is your responsibility to ensure that any written notice is received by us.

We are entitled to debit your account with the amounts of:

all transactions carried out by or with the authority of you by means of your card and your PIN; and

all transactions not authorised by you, but which have been carried out by means of your card and PIN before we have had a reasonable opportunity, after the verbal notification in terms of clause 19.8 above, to prevent any further unauthorised transactions.

MONEY MARKET INVESTMENT ACCOUNTS

We will not pay any interest if the minimum deposit or balance is below such an amount as we may, at our discretion, determine from time to time.

The interest will be calculated on the daily balance in the account and capitalised on the fourth-last business day of each month.

Interest rate changes will appear on your monthly statement.

Service fees (if applicable to the product) will be levied by us if an amount of less than R500 is withdrawn from the account or if the balance falls below R20 000. Pricing brochures in respect of service fees are available from any branch.

Cash-handling charges will be levied on all ATM and over-the-counter withdrawals, as well as on all cash deposits. Pricing brochures in respect of cash-handling fees and charges are available from any branch.

All service fees and cash charges are debited to the account on the fourth-last business day of each month.

Monthly statements reflecting all transactions carried out will be sent to you.

A money market investment account will become dormant if you do not initiate any credit transactions on your account for a period of 365 days.

You will not be able to transact on a dormant account without providing proof of identity and such account will be subject to reactivation procedures at any branch.

You must ensure that there are sufficient funds in the account to pay for any debits against the account.

The account must not become overdrawn.

If the account has a debit balance for whatever reason, the full debit balance will be payable immediately. In such instance we will not pay any interest and will charge standard fees to the account and debit interest will be levied on the debit balance.

FIXED-TERM INVESTMENTS

The minimum amount for opening a fixed-term investment account is such amount as we, at our discretion, may determine from time to time.

You should advise us in good time (at least one month before the expiry date) with regard to the payment of the capital and/or reinvestment thereof.

If we do not receive formal reinvestment or capital disposal instructions from you, we will reinvest the capital and the interest (if the interest was capitalised) for a similar term, but at the interest rate applicable to the investment at the time of reinvestment.

The frequency at which interest is paid may not be changed once the account has been opened. Capitalisation can only be done on expiry of the fixed deposit.

Interest may be compounded monthly in the case of prime-linked fixed-term investments, provided the interest frequency is greater than monthly.

In the case of prime-linked fixed-term investments the interest rate will be a percentage of our prevailing prime overdraft interest rate, and will fluctuate in accordance with changes in this prime overdraft interest rate from time to time. This percentage is fixed for the investment term.

You may choose to have the capital and/or interest paid into your Nedbank current account, Nedbank savings account, Nedbank home loan, Nedbank credit card, Nedbank notice deposit (provided the minimum deposit criteria for the notice deposit is met) or a savings or current account held at another bank, or you may choose to have it paid out by means of a bank cheque.

The capital and/or interest will not be paid out in cash.

You may choose to have your interest paid in advance or in arrear on certain fixed-deposit products. This interest option may not be changed during the term of a deposit.

For Fixed Deposit and OptimumPlus products opened by you on any digital channel (‘Electronic Fixed Deposit’ and ‘Electronic OptimumPlus’ respectively) the following provisions will also apply:

The Electronic Fixed Deposit and the Electronic OptimumPlus products (collectively ‘electronic products’) are available to you if you have a digital profile. The electronic products can be opened and maintained only on digital channels, and not at a Nedbank branch or through the Nedbank Call Centre.

The electronic products offer a preferential interest rate over and above the current interest rate offered on an equivalent Fixed Deposit or OptimumPlus product not opened and managed through a digital channel.

The product term is between 1 and 17 months.

Existing Fixed Deposit or OptimumPlus products cannot be converted to an Electronic Fixed Deposit or Electronic OptimumPlus product before the existing term has expired. Once the current term of an existing Fixed Deposit or OptimumPlus product expires, you may reinvest your funds in an Electronic Fixed Deposit or Electronic OptimumPlus product through any digital channel and qualify for the preferential rates.

NOTICE INVESTMENT ACCOUNTS

The minimum amount for opening a notice investment account is the amount we may determine from time to time.

You must give notice for any withdrawal. The required notice period will be advised to you at the time of opening the account.

Interest will only be paid out or capitalised monthly.

Interest rate increases will apply with immediate effect. Interest rate decreases will come into effect on the lapse of the applicable notice period advised to you at opening of the account.

We will advise you in writing or by statement of downward interest rate changes only. If you do not receive this advice, we will not be prevented from decreasing the interest rate.

You may choose to have the capital and/or interest paid into your Nedbank current account, Nedbank savings account, Nedbank home loan, Nedbank credit card, Nedbank notice deposit (provided the minimum deposit criteria for the notice deposit are met) or a savings or current account held at another bank, or you may choose to have it paid out by means of a bank cheque.

The capital and/or interest will not be paid out in cash.

A notice investment can be opened and maintained on any digital channel and is available to you if you have a digital profile.

NEDBANK TAX-FREE SAVINGS ACCOUNT

In accordance with regulations published in terms of the Income Tax Act, your attention is drawn to the following:

The annual contribution limit per individual is the amount as specified by legislation per tax year. This is a cumulative limit and any deposit made into the Nedbank Tax-free Savings Account will be included in the annual contribution during any tax year, regardless of any withdrawals that may be made from the account.

The lifetime contribution limit means the maximum amount as specified by legislation.

Any contribution above the annual or lifetime limit will be taxed at 40% by the South African Revenue Service in the tax year that the over-contribution was made.

You may invest in more than one tax-free savings account, but will still be subject to the same limits and penalties mentioned above.

You are able to transfer funds from one tax-free savings account held with us to another tax-free savings account held at another product provider.

Subject to clauses 23.8 and 23.9 below, we will process the transfer within 10 (ten) business days of receiving your request, provided the request is made within the same tax year.

We will not process a transfer request if such request is received 10 (ten) business days before the end of February for that tax year.

You are able to transfer funds from your Nedbank Tax-free Savings Account to another tax-free savings account with another product provider only once a year.

We are not obliged to honour a transfer request if the amount remaining after the transfer would be less than the minimum amount required for the Nedbank Tax-free Savings Account product.

We will issue a transfer certificate that will record the information regarding the transfer.

Subject to the above, any return on a Nedbank Tax-free Savings Account will be tax-free in your hands.