You might feel more comfortable keeping your money under the mattress than in the bank… but here’s why a bank account is a better option.
Why open a bank account?
A bank account is a safe place to keep your money, makes it easier to receive payments (like a salary or refund from Jet), and helps you manage your finances effectively. Over time money under your mattress loses value because prices keep going up over time (this is called inflation). In the bank, your savings earn a little extra, called interest, to try and keep up with inflation.
Choosing the right bank account
Do your homework. Some people stay with the same bank their whole lives! All banks charge fees for their services, the key is to find the bank that is the best priced for your needs, so before you start looking for a bank account, think about what you want to use it for. Is it just for savings or will you be doing a lot of transactions or regular cash withdrawals…
Types of accounts
Cheque/Current account: Useful for daily transactions, receiving payments and paying bills.
Savings account: Ideal for putting money aside and earning interest.
Student account: Designed for students, often with lower fees and student-specific benefits.
What to look for:
1 Compare fees
Choose an account with minimal or no monthly fees. Most banks will list their fees online or have a printed brochure. Check out a few banks and compare their costs for the following transactions:
What does the bank charge per:
- Month
- Electronic Fund Transfers (EFT)
- Cash deposit
- PayShap
- ATM withdrawal
- SMS / Email notifications
Some banks may offer fee waivers for young adults. If you’re a student, check for student-specific benefits such as discounted fees, student loans or educational resources.
2 Compare interest rates
Most banks offer various savings accounts, from easy access accounts where you can access your savings immediately to fixed deposit accounts where you have to give 30 days’ notice. All the different options can get confusing. Decide what type of savings account works for you and then compare the interest offered on those accounts between banks.
3 Access and convenience
If you prefer cash, choose a bank with a wide network of branches and ATMs, especially near your home, workplace, or school. Also ensure the bank has a good online and mobile banking platform so that you can easily do your banking anywhere.
4 Customer service is critical
Look for a bank that provides excellent customer service, with multiple channels for support such as phone, email, and live chat. Test their customer service by asking questions before you open an account to see how responsive and helpful they are.
5 Nice to haves but not crucial
Some banks offer perks like discounts, rewards programs, or budgeting tools. These extras are nice but should not determine your decision. In the long run, competitive fees and good customer service trumps all.
What do I need to open an account?
The requirements differ from bank to bank but in general, this is what you need:
- South African ID, driver’s license or passport
- Proof of address: A recent utility bill, lease agreement, or any official document showing your or your parents’ or guardians’ address, or an affidavit that you live with your parent or legal guardian.
- Smartphone to take selfies
- Contact details: An email address and mobile number
- Proof of income/Student status: A payslip if you’re working, or a letter from your educational institution if you’re a student.
Keep in mind that it takes a few working days to open and activate a bank account and to receive your bank card – it does not happen immediately.
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