Graduate looking for a bank account

[SAdata]

Hi all. I'm currently with Nedbank on their student design account - you pay R16.50 per month and basically no other fees. I will be working from next year, so I won't be able to use this account anymore as I won't be a student.

I saw the one Nedbank Savvy account is R89pm, it doesn't seem too bad. Had a look at the other banks but I didn't see much difference to be honest, but maybe I just didn't put enough effort in reading about their offerings

I probably won't be needing much finance for 3-5 years, and I might go on an international stint in the same time frame.

Investec offered me their account at R230 a month, which is much more than the other banks, and I don't see myself using all of its features for a few years at least.. Although I would get an online share account (which is included in Investecs offering)

So following on all of this I have 3 questions:

1. Which bank account would you recommend based on the above?

2. Some of the banks offer a pay as you use account - can this work out better based on say 30 transactions per month (withdrawls, swipes, payments)?

3. Some have a garage card and others don't. Whats the relevance of garage cards today when you can just pay with a debit card

Thanks so much!

 

[borga]

I still have my absa student account as a backup account at R16.5 per month, Absa hasn't forced me to change it yet even though I am working for almost 27 months already (although I get yearly e-mails to provide proof that I am still a student which I just ignore), some of the people at my work uses their student account as their main account and get their monthly salary of 14K+ deposited into it and the bank still hasn't realized that they are no longer students.

So if want to pay cheap banking fees keep your student account until your bank says to you that you can't have it any more.

1. Personally I have Investec as my bank account, while the fees may be a bit steep I find their service very good, I also use their online share trading platform.

I know one of my friends was at FNB private banking and he said that if he adds all his fees together (bank fees, overdraft, ect) then investec isn't that much more expensive.

2. I like investec, unlimited payments/swipes/withdrawels at any ATM, but pay as you use accounts may work out cheaper than fixed fees accounts if you do very little transactions.

3. I have a garage card but I stopped using it as I can use my credit card to pay for fuel and earn rewards at the same time, I now only use it for toll gates as it is easier than having to get out some cash.

 

[cr@zydude]

If all you need is a place to store your money, there is no better bank than capitec. They charge R5 per month. They don't have credit cards or bonds though.

I switched to them after Standard Bank told me that despite being a full time student, as I am over 23 they need to charge me R99 per month.

 

[Garson007]

Graduates getting accounts at Investec? :erm:

 

[SAdata]

Graduates getting accounts at Investec? :erm:

CA trainees do

 

[Freaksta]

Graduates getting accounts at Investec? :erm:

They target the guys who will eventually become the higher earners. Rather than trying to get the high earner to change from the competition they lock them in before hand.

Only specific graduates. I know CA fall into the bracket. I still havent swopped as i cant justify the fees. They do however offer good rates on car finance and houses.

 

[RyanPCMR]

LOL! The heading of this post seemed so strange that I simply had to have a look at why my mind was shouting WTF?

 

[Freaksta]

They target the guys who will eventually become the higher earners. Rather than trying to get the high earner to change from the competition they lock them in before hand.

Only specific graduates. I know CA fall into the bracket. I still havent swopped as i cant justify the fees. They do however offer good rates on car finance and houses.

That being said I am on the fee saver option at FNB which requires a 9k balance in exchange for no monthly fees.

 

[Goliath]

Get FNB Smart unlimited account for R49pm(i think,too lazy to check), you can add online share trading platform (Investor) when you want to, also R49pm monthly fee. Regarding fuel card, I use the debit card. Credit card for international travel = Virgin credit card

 

[MKFrost]

I would say Capitec as you do not need much in the way of financing BUT....

If you plan on heading overseas then stay away. To many headaches with Capitec that cannot accept direct foreign transfers [must go via Nedbank] and AFAIK they do not allow for foreign salaries to be paid to one of their accounts.

Secondly, I would suggest getting a credit card [which Capitec do not offer, yet] so you at least start to build up some form of credit record with your bank.

I think the most important think to keep in mind is to try and settle with a bank that will grow with you so you can build a history with them. Because of that Investec might not be a bad call even though the fees might seem high now.

Another option will be Standard Bank. I have an account with them locally as well as with Standard Bank Isle of Man. Easy to open through SB locally and or online and easy to move funds between the two. Fees on foreign account obviously a bit higher i.e. transaction cost. There is no monthly fee if you maintain the minimum balance on the account which is 5,000 pounds/euro/$.

 

[HavocXphere]

Secondly, I would suggest getting a credit card [which Capitec do not offer, yet] so you at least start to build up some form of credit record with your bank.

Speaking of credit records...the Investec cards don't show up on credit records at all. Not sure how they managed that...

Thats a potential negative if you go house hunting later since it limits your financing options. Investec usually undercuts all the other banks anyway so its rarely a problem. Still...being tied to one bank doesn't exactly excite me.

Another option will be Standard Bank.

First option I looked at too. After taking the 60 bucks share trading charge into account you might as well take the Investec one though.

Like MK I'm starting to think about opening more accounts too....specifically due to fraud. I'm pretty confident that my bank has my back in that regard...but it takes a week or 2 to sort out and I need cash to burn during that time. None of the other banks really appeal though tbh.

 

[Debeer165]

I am going to be in a similar situation next year myself. I currently have my Capitec account, and am hoping to get an FNB account next year to use as transaction account with a credit card as well, then I'll keep my money in Capitec for interest generation and just EFT to FNB as the money becomes needed.

Good idea?

 

[MKFrost]

...then I'll keep my money in Capitec for interest generation and just EFT to FNB as the money becomes needed.

Good idea?

I work with a setup similar to what you have in mind. My main reason for doing so is mostly from a security point of view, not sure it really matters but I sleep better. My setup is as follows:

SB Isle of Man - Main account where I receive all my income so basically the source of my funds. Four transfers a year from there to local Capitec account.

Capitec - Main account with around R5k in it and balance of funds held on 2 sub savings accounts or in fixed deposits. Internet banking with security token. No mobile number/phone linked to the account thus no mobile banking. Hardly ever use my Capitec card, basically just a backup card.

Standard Bank local - Just a credit card with a limit kept at R10k. Use this card for 95% of purchases/payments/draw cash. Card is paid in full every other week or as needed.

Should my card be skimmed/cloned then my exposure or rather the banks exposure is R10k. I find that banks are far quicker to sort out fraud on a credit card than on a debit card. So if they slip me for R10k I make it the banks problem as its their money.

There is no direct link between my main income account and my daily spending account. Also, bulk of my funds are held offshore but this is because of business reasons and not to try and be fancy etc... If it was not for our draconian exchange controls then I would have held it locally.

 

[borga]

Speaking of credit records...the Investec cards don't show up on credit records at all. Not sure how they managed that...

Not just the cards, I also have vehicle finance and it doesn't appear on my credit record, which is fine as long as you remain at Investec, but it will limit your option if you decide to move but the main reason why I got one of those store cards to build up a credit record.

 

[ShaunyCT]

Garage cards is not needed as it use to be in the past. The bank charge you a monthly fee and a fee for swiping every time you use it. These days you can use cheque or credit cards which in most cases have no purchase fees.