Bank Accounts

[happynoodleboy]

Hi people of the internet.

I have a question.

Is there any real reason for having a specific type of bank account?

Let's say, person A qualifies for a Private or Elite or some such account at one of the big banks.

What are the perks of having this account, if you are just going to use the account for normal day to day banking?
Vs. say a run of the mill entry level cheque account.

In other words, does the elevated status of this account mean anything to the average Joe on the street who can get one?

I hope the question makes sense...

 

[Priapus]

All it means is that you pay more to the banks for a "Status". If you use the account normally then don't bother tbh.

 

[happynoodleboy]

All it means is that you pay more to the banks for a "Status". If you use the account normally then don't bother tbh.

Thank you. Was leaning towards this myself, but just wanted some input from more knowledgeable peoples.

The argument from the person is that with that account comes a higher "credit worthiness " for lack of a better term.

So if person A and person B have the exact same financial position, person A would get car finance easier because of the fancy account, opposed to person B with a normal account.

 

[Priapus]

Thank you. Was leaning towards this myself, but just wanted some input from more knowledgeable peoples.

The argument from the person is that with that account comes a higher "credit worthiness " for lack of a better term.

So if person A and person B have the exact same financial position, person A would get car finance easier because of the fancy account, opposed to person B with a normal account.

"Credit worthiness" is based on your credit score and how well you pay back debt. Having a fancy account adds nothing to that. It is also not worth the extra fees they charge you. FNB for instance offer me a private account. Do I want it? Hell no. More of my money goes to the bank and I don't get that much more out of it.

Save your money. Stay with a bog standard cheque account.

 

[Vaughan]

I was on a thing with Standard Bank where I got private banking for 3 years for the normal account price. The only real difference was that they would come to me to get stuff signed. They would organise FOREX and stuff and deliver it to the nearest branch for you. Then if I had problems I could just email the private banker and they would sort it out. The only thing that upgrades is that the service is better, but I wouldn't say that it is worth it if you pay the full amount.

 

[IzZzy]

I have a question.

I would say professionals (doctors, lawyers etc) need different accounts purely because of the support it brings. When your personal cash flow depends on client's paying, it makes sense to have access to exclusive financing options - which a typical retail bank doesn't provide.

 

[AstroTurf]

Only reason I have the account I do is so that the bank charges are almost always exactly the same each month.

 

[risami]

Banks are all the same. They're a business, not a charity. They'll entice you to join them and bait you with perks galore. Once you locked in you realise that they're pretty much the same *******s you left in the first place just under a different banner and theme. The golden rule is assess how you use your account, what you need it for (day-to-day purchases, savings, withdrawals etc.) then match the banking product that suites your needs and pocket the best. Like Tander said, just because your bank offers you a private account doesn't mean you should take up that offer.