USD account – Incompass

US Dollar account

US Dollar accounts are available for South African individuals and are an ideal option as a dollar based holding account for cash funds.

Who should set up a US dollar account?

Individuals who:

Are looking for a cash based interest bearing account in which to hold USD or build up cash reserves of USD.

Are in need of an offshore account in their own name - for example if redeeming USD from one fund manager with a view to then investing USD with another fund manage. Often redemptions can only be made into an account in the individuals name so the account acts as a hand bridge.

Wish to transfer their annual allowances out of South Africa but as yet have not made a decision on where these funds will ultimately be invested.

Wish to transfer their annual allowances out of South Africa but as yet have not made a decision on where these funds will ultimately be invested.

What is the US Dollar account?

The USD account is provided via Investec and whilst held in Investec’s books it is classified as a true offshore account.

All transactions to and from this account are subject to compliance with SARB regulations which impact the way the account can be funded. Transfers to the account must come from permissible funds.

Common permissible funds

Annual R1m Single Discretionary Allowance.
Annual R10m Foreign Investment Allowance with valid SARS Tax Clearance Certificate FIA together with SARS PIN letter.
Growth/ income on permissible foreign funds (eg interest on funds you took out via your allowances).

Income earned whilst physically abroad from a foreign employer after 01 July 1997 (this means you need to have been living in another country, worked in the other country and earned money there).
Foreign inheritances from a bona-fide non-resident estate.
Other amounts if specific approval has been obtained from the SARB.

How the US Dollar accounts works

The US dollar account actually comprises of two accounts:

A settlement account which attracts no interest.
A 32 days notice account. Where the balance is above $10,000 interest is payable. This is linked to the US Federal Funds rate, accrues daily and compounds monthly.

Opening the account

The account can be opened remotely with no need to visit one of our offices. Note applications attract a once off administration fee of ZAR1,000 (plus VAT).

Funding the account

As per the above funding the account must be via permissible funds and may only be done via bank transfer. No cheques or cash can be used.

Ongoing charges

There are no monthly fees for the account but a $15 charge will be levied by Investec (as the authorised dealer) when:

A payment is made from the account to a ZAR account in your name
Any third party payments made from the account
For returned or incorrect payments

Such fees will be debited from your USD account.

Withdrawals

The notice period is a minimum of 32 days from the date of the notice instruction. Notice days that fall on non-business days will be processed on the next business day thereafter.