Important and precious things in life should be well looked after and put to good use. Your money is no different and your bank account is key to the way you manage your money. When considering an account it is important to look at your banking needs so it doesn’t end up costing you more in the long run or result in you missing out on important valuable services. Choosing a bank account, or switching accounts, may seem daunting but just opting for the simplest account when faced with many alternatives in the market is not necessarily the best or most cost effective route.
Eunice Sibiya, head of consumer education at FNB shares a xxx things to keep in mind when signing up for a new bank account or if you are considering changing from your current account.
Bank account basics
While different bank accounts have different capabilities depending on what you choose, there are a few basic features that are a must in any account you settle for.
You should be able to receive deposits, pay for items and services (using your card or cash ), pay people (through cash or an electronic funds transfers [EFT]), send money to people through a mobile money platform and bank on digital platforms such as cellphone banking, online banking, ATM and a banking app.
In this day and age, digital banking platforms such as cellphone banking and app banking are no longer a novelty but a must. It is vital to be able to bank anytime of the day and not be restricted to banking hours.
The power is in your hands
Before choosing an account ensure that you have options in the way you transact with the money. Flexibility in how your account enables you to transact is important because situations and preferences differ. Also, choose a bank account that suits your transacting behavior – whether you make numerous ATM withdrawals in a month, have lots of debit/stop order coming off your account, or make regular cash deposits.
The account should allow you various options to make withdrawals for example at an ATM or at a till. If you have to pay someone you should be able to do so through an EFT and/or from a digital channel whether that is cellphone banking or app banking.
Best value for your banking fees
There will always be an admin fee for the account but you should be able to pay the minimum on, for example, electronic transactions. You need to familiarise yourself with your bank’s fees and ensure you know what additional fees are charged. Transacting costs should also factor in your choice of bank account. This should enable you to bank in such a way that you incur minimum fees. Digital banking (cellphone banking, online banking, app banking) is one way of driving down or avoiding bank fees but make sure that you are up-to-date on the alternatives.
If you only have a certain amount of free ATM withdrawals per month and these have run out, for example, an alternative would be to withdraw cash for free at a till when you pay for your groceries.
Growth opportunity
You would not want to work somewhere if you knew that you would never have growth opportunities. Similarly, whilst a bank account should be based on your needs, it should also leave room for growth and consequently the uptake of other offerings or the upgrade to accounts that offer you different value adds.
As you grow older your financial needs are likely to change and you may want to make use of loyalty programmes or start running debit orders. Look at what your bank will be able to offer you, even if you aren’t able to make use of these features just yet.
Similarly, check if your bank offers different products that are of interest to you, if not now possibly in future. You might require housing finance at a certain stage in your life or a savings plan for retirement. Having options is always a plus as you may need products such as Tax Free Savings accounts or credit products designed specifically for the purpose of financing a home.
Before signing up for an account, make sure it checks the current boxes and that the institution you sign up with has future prospects.
“Banking should be easy and the value adds and products that your bank offers you should make sure that it is,” concludes Sibiya.
