Nedbank Foreign Currency Account: Complete Guide

Nedbank offers foreign currency accounts to anyone who already has a current or savings account with them.

Nedbank markets their foreign currency account as a way to invest in foreign currency, but if you’re someone that’s wanting to actively use a multi-currency account (for example, an expat or someone who gets paid in different currencies), you may want to look at other options.

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

Let's take a look at how a foreign currency account with Nedbank works, and look in detail at the associated fees, times, requirements, and more.

How does a foreign currency account work?

A foreign currency account allows you to hold, send, and receive payments in foreign currencies. This makes it easier for you to deal with receiving and sending international transfers.

Rather than having to send money between accounts regularly, foreign currency accounts make it easier to manage money globally. They’re a great option for those who manage or deal in multiple currencies on a regular basis as you may be subject to lower fees, depending on the bank you hold a foreign currency account with.

Nedbank USD account, Euro account, and other currency accounts

Nedbank allows you to hold foreign currency accounts in eight different currencies: USD, GBP, EUR, AUD, CAB, HKD, JPY, and ILS¹. The requirements and account availability are the same for each foreign currency account.

However, when you are transferring money from a foreign currency account to your transactional Nedbank account, you will incur exchange rate fees that will differ depending on the currency that you are transferring or receiving².

Nedbank doesn’t use a mid-market exchange rate. Instead, it uses an interbank exchange rate. Therefore, the interbank exchange rate, plus a percentage on top of it, added by Nedbank, will make a difference to the final amount that you receive or send.

Mid-Market Rates Help You Save with Wise’s Multi-Currency Account

Taking these charges into account, you might want to look at bank alternatives such as Wise. Wise provides a great solution, allowing you to hold and send multiple currencies in one place!

Whether you have family in another country, travel frequently, or need to hold, send and receive multiple currencies quickly and simply, Wise is here to help.

Let the stress of multiple currency accounts go and use Wise, where you can send, receive and hold multiple currencies with ease*.

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

The benefits of a Wise Muti-Currency account:

• Free, quick and easy⁶ to open an account online
• Features profile authentication for security purposes
• You can request local bank account details in 5 different countries
• You can store, send, and receive money in more than 40 currencies
• You can see the currency exchange rate in seconds, with a mid-market rate
• Low, transparent fees⁴

How to open a Nedbank foreign currency bank account?

You can open a foreign currency account with Nedbank if you are²:

• Over 18 years old
• South African with a valid ID document and a SARS tax number
• Foreign national with valid work permits and ID
• Have a transactional account with Nedbank (any apply)

If you pass these requirements, you can apply for a Nedbank foreign currency account either online or in a Nedbank branch. If you want to apply online you need to²:

• Head to the Nedbank website (www.nedbank.co.za)
• Go to International banking and click “Foreign currency account”.
• Fill in an application form and choose the currency of the account you want to open
• Accept and confirm the disclaimers
• Submit your application
• Wait for up to 2 days for a Nedbank representative to get back to you with the decision.

Nedbank foreign currency account fees and charges

There are no fees associated with opening a Nedbank foreign currency account and there are no maintenance charges for the account. However, there’s a minimum amount of R1,500 needed to open a Nedbank foreign currency account¹.

Since Nedbank’s foreign currency accounts are predominantly for investing in foreign currency, Nedbank has provided information about how you can send money from your transactional Nedbank account to your foreign currency accounts. However, each time you make a transfer between your accounts, you will incur exchange rate fees².

Additionally, if you want to receive or make an international transfer, the fees subject to standard international transfers with Nedbank apply. You can see the fees and charges associated with receiving and sending international transfers in the table below.

Receiving an international transfer³	Commission³	Minimum - Maximum charge³
Amounts over R2000³	0,64%	R163,00-R780,00
Amounts under R2000³	R100,00

Sending an international transfer³	Commission³	Minimum - Maximum charge³
Any amount	0,59%	R169,00-R818,00

Nedbank also charges a communication fee for sending international transfers. This is a one-off flat charge of R112,00³.

There are also limits to how much money you can transfer internationally from South Africa.

You can send up to R1 million using a discretionary allowance without having to provide supporting documents, but if you want to send up to R10 million abroad you will have to provide supporting documentation.

Nedbank Debit/ Credit Card features for foreign currencies

Nedbank does not offer debit or credit cards with foreign currency accounts. However, you can send money to a Nedbank Travel Card from foreign currency accounts².

To send money from your foreign currency account to your Nedbank travel card you will need to²:

• Complete an indemnity form via fax or email (you only need to do this once when transferring from a foreign currency account)
• Complete a fund transfer form your foreign currency account to your travel card
• Provide a copy of your passport and e-ticket
• Email these forms/documents to Nedbank support (at fca@nedbank.co.za) and wait to hear back from a customer service agent.

Nedbank travel cards are also subject to fees, which you can see below:

Nedbank Travel Card³
Commission³
Minimum charge³
Card fee³
Encashment of unused funds on Card³

How to transfer funds to and from Nedbank foreign currency account

To transfer funds from your transactional Nedbank account to your foreign currency account, you will need to²:

• Complete an indemnity form via fax or email (you only need to do this once when transferring from a foreign currency account)

If you are sending less than R160 000 you need to²:

• Send an email with your foreign currency account number, transactional account number, the amount you want to transfer, and your tax number if you’re a South African Resident to fca@nedbank.co.za

If you are sending more than R160 000 you need to²:

• Fill in a foreign currency account funds transfer form.
• Provide a tax compliance status PIN letter (issued by SARS) if you are using your R10 million investment allowance

Regardless of the amount of transfer you will then need to wait for a Nedbank representative to get in touch for authentication and to tell you the exchange rate of your transfer².

To transfer funds from your Nedbank foreign currency account to your transactional Nedbank account the process is essentially the same. You need to²:

• Complete an indemnity form via fax or email (again, you only need to do this once when transferring from a foreign currency account)

If you are sending less than R160 000 you need to²:

• Send an email with your foreign currency account number, transactional account number, and the amount you want to transfer.

If you are sending more than R160 000 you need to²:

• Fill in a foreign currency account funds transfer form.

Regardless of the amount of transfer, you will then need to wait for a Nedbank representative to get in touch for authentication and to tell you the exchange rate and confirm your transfer².

Using a Nedbank foreign currency account means that you have to spend time completing forms, sending emails, and making sure you’re always mindful of transaction limits every single time you want to make a transfer between your Nedbank accounts.

When you have a multi-currency account with Wise, the process is super simple⁶ - there isn’t a long process to go through. You can add, hold, send, and receive money in minutes⁴, seeing the currency exchange rate and low cost fees for transactions in seconds⁵.

Interest on Nedbank foreign currency account

There are interest rates applied to all of the foreign currency accounts at Nedbank, meaning you will accrue interest over time on the foreign currency you hold.

Nedbank offers different interest rates for different currencies, ranging from 3.20% on a Nedbank US Dollar account to 0% on an Israeli Shekels account¹.

Foreign Currency Account¹	Interest Rate¹
GBP	2.70%
USD	3.20%
EUR	1.55%
AUD	2.00%
CAD	2.80%
HKD	3.00%
JPY	0.00%
ILS	0.00%

Nedbank allows you to have foreign currency accounts in 8 currencies, some of which have favourable interest rates. Plus, the barriers to opening these accounts are reasonably low. However, the process of transferring money between these accounts is not only complicated and can take time, but you’ll also be subject to inter-bank exchange rates and hidden fees.

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Get Wise today and enjoy a multi-currency account to send and receive in currencies such as Euro, U.S. Dollar, and British Pound, among many others*! With mid-market exchange rates, low, transparent fees, and simple and quick processes, Wise makes it easy to manage money globally⁴.

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

Join Wise!

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Sources

1. Investments
2. Foreign currency account (FCA) | Nedbank
3. Schedule of fees | Nedbank
4. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.
5. 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.
6. Eligibility is subject to verification of customers identity. Wise may request additional documents to verify a customer's identity.

All sources checked as of 15/08/2023.