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Call Account for Trusts
July 9, 2023
Why pay any high banking cost?
Having a call account as the main account for a South African Trust can provide several benefits and serve various purposes. Pay no monthly fees and earn a high interest rate on your balance with Call Accounts. Here are some reasons why you might consider a call account for your trust:
- Flexibility: A call account is a type of transactional account that allows you to deposit and withdraw funds as needed, providing flexibility in managing the trust's finances. It offers quick and easy access to funds, ensuring liquidity whenever required.
- Interest Earnings: Call accounts earn interest. While the interest rates on call accounts might be lower than those on other investment options, such as fixed deposits or notice accounts, they can still provide a modest return on the trust's funds. A trust can fix a portion of the funds for higher interest.
- Operational Efficiency: Using a call account as the main account for your South African Trust can help streamline financial operations. It simplifies cash management by consolidating the trust's transactions in one account, making it easier to track income, expenses, and overall financial activity.
- Payment Transactions: Call accounts enable you to make payments on behalf of the trust, such as settling bills, making distributions, or disbursing funds for trust-related expenses. You can add scheduled payments to ensure regular payments on specific days of the month.
- Separate Account: Maintaining a separate call account for the trust distinguishes its finances from personal or other business transactions. This separation enhances transparency and helps avoid commingling of funds, which is important for legal and accounting purposes, especially for managing a trust's assets and obligations. South African law states that a trust must have its own account.
Our Family Office assist clients opening Trust bank accounts with Investec, Nedbank and Capitec. No monthly fees for trusts compared to banks high monthly fees. No interest earned on bank balance with current accounts while earning a good interest on your balance in call account without cost.
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