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Savings and Deposit Accounts
Vehicle Insurance
Home Loans
Personal Loans
Foreign Investments
 

Savings and Deposit Accounts

What are the benefits of a Savings Account?
In a market where there is a multitude of different investment options to choose from, a traditional financial product like a savings account offers flexibility, access, security and low costs.

The key benefits are the following:

•  You do not have to contribute a fixed amount at regular intervals or a lump sum as with other investment products

•  You always have unlimited and immediate access to your money

•  The bank guarantees that your investment will be paid out with interest

•  The only costs involved are transaction fees

How do I choose the right deposit facility?
A deposit account is ideal when you have surplus funds (cash) that you do not have an immediate use for. The interest you receive on a deposit account is more favourable than that of a normal savings account or transaction account.

Fixed Deposit

•  Your funds are invested for a fixed period of time

•  You can receive the interest at the end of the fixed period or regularly throughout the period, for example monthly, quarterly or annually

•  You receive a fixed, highly competitive rate of interest

•  You may use your deposit as security for a personal loan or other advance

Notice Deposit

•  Your invested funds are released 32, 60 or 88 days after you have given us notice

•  Interest is calculated daily and capitalised monthly

Call Accounts

•  You have access to your money at any time, but you must maintain a minimum balance

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Vehicle Insurance

How can you pay less vehicle insurance?
Given the high crime and motor vehicle accident levels in the country, vehicle owners have had to become accustomed to escalating insurance bills.

Consider the following when taking out vehicle insurance:

    • Shop around for the best deal in terms of premiums, conditions and packages offered by insurers and one that suits your needs • Inquire about security devices that may be fitted to your vehicle as these often lead to a reduced premium • New model vehicles are more expensive to insure. A later model used vehicle may offer you savings on insurance premiums

    • Demand a no-claim bonus from your insurer

What factors will determine your vehicle's insurance premiums?
Your age, occupation, history of prior insurance claims, type of vehicle, security features of the vehicle, where the vehicle is parked at night, the vehicle's age and capacity, financial history and past driving violations could all play a role in raising or lowering your premium.
Should you buy that vehicle?
Before buying a vehicle, take the time to enquire how reasonable its price is, how sound it is mechanically and whether the vehicle has been involved in any major accidents. Generally the dealer selling you the vehicle will be able to provide you with this information. You may however obtain independent advice from a mechanic, panel-beater or the Automobile Association (AA). When buying a new vehicle, ensure that the dealer provides you with a factory warranty and guarantee.

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Home Loans

 
Is property a good investment?
Owning a home gives you far more credibility in the financial world. Property is a valuable asset that can be used to secure other loans and enhances your credit worthiness enabling you to negotiate better interest rates on financial agreements.

Renting property is regarded as a poor option, as you are essentially paying off your landlord's bond.

When buying a home it is important to consider the neighbourhood in which you buy to ensure that your property retains a good resale value in future, if you should sell.
Do I need to pay a deposit on my home loan?
Usually a deposit of between 10% and 20% of the purchase price is required. However a 100% home loan can be granted at our discretion.
 

Do I qualify for a home loan?

If you are gainfully employed and are convinced that you can repay the specific monthly installments on your home loan, you can qualify. The monthly installments should however not exceed 30% of your gross monthly income. If you are married, the income of your spouse, if he/she has a permanent income, will also be taken into account.

In addition, to assist you while you are looking for that home of your dreams, you may request Bank Windhoek to supply you with a certificate stating your qualifying loan amount even before you apply for a home loan.
What documentation do I need to provide when applying for a home loan?
Home loans are granted over a maximum period of 30 years. It is normally a condition that the home loan must be repaid in full when you reach retirement age. It is therefore advisable to acquire your home at a young age, as this will ensure that your repayment period will be longer which will reduce your monthly installments making owning the home of your dreams more affordable. The repayment period of your home loan can also be shortened if you increase your monthly installment.
Over what period can I repay my home loan?
Home loans are granted over a maximum period of 30 years. It is normally a condition that the home loan must be repaid in full when you reach retirement age. It is therefore advisable to acquire your home at a young age, as this will ensure that your repayment period will be longer which will reduce your monthly installments making owning the home of your dreams more affordable. The repayment period of your home loan can also be shortened if you increase your monthly installment.
Do I require insurance for a home loan?
When applying for a home loan you must have life assurance cover. You can make use of Bank Windhoek's life assurance brokers, who will offer you a tailor-made package to suit your needs. If you already have existing life assurance policies at other institutions, these must be ceded to us.
What if I want to build my own house?
Should you wish to build the home of your dreams you may apply for a Bank Windhoek Residential Building Loan.In all instances we will require at least two quotations from building contractors approved by us, as well as building plans approved by the relevant municipality.
What is a Bank Windhoek Selekt Bond?
Bank Windhoek's Selekt Bond is effectively the same as a tax-free investment at the interest rate applicable to your bond. Additional funds over and above your monthly installment paid into your bond account can be transferred from your Selekt Bond to your cheque or savings account at any Bank Windhoek ATM or branch. Should you only pay the required monthly installment you can apply for a re-advance up to the original loan amount.

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Personal Loans

Should one opt for a Personal Loan?
A personal loan is usually a favoured option when you need financing without the relatively expensive interest costs of credit cards and other financing options.

Borrowing at a higher interest rate than the rate of return on an investment is never a good option. In general, borrowing to purchase consumable goods should be avoided. If there is a repayment structure, ensure that the repayment period is less than the useful life of the asset purchased.
Will I qualify for a Personal Loan?
We will analyse your current financial situation as well as your credit history before considering your application.

Financial institutions generally analyse three main aspects of a borrower's financial situation when considering an application for a loan.

•  Credit History
An unblemished credit history greatly enhances the granting of a loan and the amount of the loan.
If you apply for a loan from your own bank, the records of your accounts will be analysed

•  Repayment
Most banks will evaluate whether you can afford to repay your loan

•  Security
If you require a loan above a certain amount, you may be required to furnish some form of security, for example a bond registered over your home or other assets

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Foreign Investments

What is a foreign currency investment?
A foreign currency investment is an investment that is denominated in a foreign currency unit for example USD (United States Dollar) or GBP (Great Britain Pound). Such an investment can consist of an investment trust or a normal bank account that is denominated in the foreign currency unit.
Where is the account held?
When investing in foreign currency the investor has the choice of an onshore or an offshore investment account. An onshore account is a bank account denominated in a foreign currency with an interest rate applicable to that currency. An offshore account is a bank account / investment fund investment with a foreign bank in a foreign country.
Who can invest in foreign currency?
Any person older than 19 that is a resident in Namibia and in good standing regarding tax can invest up to the maximum amount in a foreign currency. Non-residents can invest freely in a foreign currency.
What is the maximum amount that can be invested?
A Namibian resident can invest up to a total of N$ 750 000 in a foreign currency. The amount in Namibian dollar may not exceed the maximum permissible limit.
What is an onshore account?
Bank Windhoek has launched an onshore banking product called the Onshore Foreign Currency Account. This account offers the investor the option to invest in interest bearing accounts denominated in a foreign currency. This type of account also allows the smaller investor to start with a smaller minimum investment amount than those offered by offshore banks. Interest rates on these types of accounts are linked to that of offshore banks and are very competitive.
Where can I invest offshore?
Bank Windhoek has arranged a range of offshore investment products in the form of bank products as well as investment funds / unit trusts in different financial sectors and markets.
How do I get my Namibian Dollar in a foreign currency?
In order to be able to exchange your Namibian Dollar to a foreign currency, you need to complete the following documents:

1. Confirmation of good standing regarding tax
2. MP1423
3. Form A (Bank of Namibia)

All documents MUST be completed in the presence of a bank official. Your branch will supply you with the necessary documents to complete.

The confirmation of good standing regarding tax will be sent to the Ministry of Finance - Inland Revenue Department and must be accompanied by documentary proof of the source of funds for example: proof of policy pay outs, inheritance, policy surrender value, proof of the sale of property and the like.

Our treasury department will deal with the matter and will be responsible for applying on your behalf with the receiver of revenue. When the transfer is done, the documentation will be sent to the Bank of Namibia.

Non-residents do not need to apply for such clearance with the receiver and can invest freely.

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