Unfair and exorbitant penalisation fee to be charged on my investment by ABSA

I opened my ABSA Investment account with an amount of R50 000.00 in June 2020, as I have been a long standing client of ABSA, and thought it would be best to keep all eggs in one basket with the same financial services provider.

My investment proceeded to mature in June this year and I did not elect to reinvest the funds. My funds were specifically invested for a year, with the intention to withdraw in June this year, to facilitate payment of my daughter’s university deposit and registration fees, which will soon be due, as the end of year is nearing.

ABSA, without endeavouring to make contact with myself nor obtaining a proper directive from me, reinvested the funds for another year. Considering the unprecedented times we are facing with the Covid pandemic, and considering that I had not reinvested the money after it had matured, ABSA should have been courteous enough to first enquire if I wished to reinvest my funds. With the chaos we face at present, in light of the recent spate of lootings, and economic decline, you would think that financial institutions such as ABSA would consider their client’s best interests and needs, and endeavour to make contact with their client’s first, before processing any financial transactions relating to investments. Anyone could be reliant on invested funds to assist with expenses.

I am now faced with a huge inconvenience since when I contacted ABSA, they have informed me that I may process a withdrawal of my funds they reinvested on their own, in December this year, however this is subject to a R3800.00 penalty fee payable to ABSA for a premature withdrawal? This is absolute nonsense – a penalty fee which is so exorbitant for withdrawing my own funds earlier? So instead of benefiting from an interest bearing account, I am being penalised for withdrawing my own money? Is this how you make your money ABSA?

What I have learnt about ABSA is that they portray themselves as extraordinary with a range of unique financial services, but which services do nothing positive for customers, and merely takes away a chunk of their own, hard earned funds.

ABSA has a lot to learn about proper customer service, and to make an effort for once, to check why clients have not reinvested their funds first before just assuming and reinvesting funds for a client, especially in these times. ABSA has a lot to learn from other institutions who treat their clients and customers with regard and do not penalise a client with such ridiculous amounts from an investment which a client trusts them with? It is my money and ABSA just wants to take a chunk of it out for their own benefit, because they were *********** in handling my investment.

Wake up ABSA, because you will be losing a lot of clients and customers as a result of this incompetency.

Seriously, financial institutions like ABSA need a makeover when it comes to banking services as what you currently have, does not work. You take away from the clients as opposed to giving back to them. Don’t take my own money for your benefit because of a lack of care from your institution towards myself, as a long standing client. I will not allow you to deduct such a ridiculous penalty fee from my hard earned money that I invested with yourselves.