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5 Questions to Ask Before Choosing a Bank Account

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Choosing the right bank account is crucial, and there are so many elements to take into consideration when making a choice. There is no one-size-fits all.

With the rise of digital banking and its projected growth, determining which bank account will meet your specific needs is even more important – sinse digital banking services are continuously expanding – exploring the different possibilities will be key to making the right choice.

In the African Digital Banking Transformation Report, that closely evaluates the African digital banking landscape, it was found that in 2022, 48% of the African population had access to baking services compared to 45% in 2017.

The ever increasing popularity of mobile money and digital banking has provided banking access to more of the population than before. Although 50% of population still remain unbanked, Mckinsey predicts a 10% annual growth rate in the African financial services market, that is predicted to generate $230bn in annual revenues by 2025.

Nowadays most traditional bank accounts also offer digital services. FNB is known for its strong digital banking presence offering a range of online and mobile banking services  like eWallet, and Digital Wallets that support platforms like Google Pay and Samsung Pay. Other banks like Standard Bank and Nedbank also offer similar services.

Keeping in mind that banking is going digital at an unprecedented pace choosing a bank account beyond the monthly rates and fees will be important. According to Sajeel Jagjivan, FNB’s Head of Pricing, recommends asking these five key questions before choosing the right bank account:

Do I want to shop on price or value?

Often when you think you’re getting something cheap, it’s not always the case.  Always keep this in mind when choosing a bank account. There’s a big difference between ‘affordable’ and ‘cheap’. While it may be great that a bank account appears cheap, if it’s not adding value to your money and your life, it could be costing you more than you’re saving.

Solidarity has named FNB Easy PAYU as one of the lowest-cost bank accounts on the market with the most free transactions and value for customers, in fact, we believe that no matter what account you choose to open with us, you deserve to get as much value as possible from it.

What do I need the account for?

A bank account is not just to store money but a service that enhances your quality of life and must meet your unique financial and banking needs. To find a suitable bank account, you need to know your needs and how you plan on using it.

For instance, many of the low-cost, or free, bank accounts available, don’t charge a monthly fee, but make you pay for most of the transactions you do monthly and at a higher rate than those accounts with a monthly fee. That means, if you will be transacting a lot, you pay more.

How do I want to interact with my account, and my bank?

Customers mainly utilise a transactional account to deposit funds and make payments. The economy currently works off a mix of cash and digital transactions. Over time there has been a massive shift towards digital banking.

Digital is quick, convenient, and cost effective. Therefore, you need an account that gives you the option to transact digitally as much as you like but can also solve your cash needs.

What am I going to need from my bank, and account, in the future?

You will need a bank account for the rest of your life so it is important to have a bank account that can adapt and grow with you as your needs change through the different life stages. As your income grows and your family evolves the solutions you require get more complex.

The ideal choice is a bank that not only advises you on the products required to solve your needs but provides them as well. A bank that can include future requirements like overdrafts, credit cards, and investment options.

What Rewards do I get?

Most banks offer reward programmes. While these can seem very enticing, it’s important to fully understand how the rewards on your chosen account work, how easy it is to earn and redeem them, and whether they add value.

Jagjivan says, “It’s important to choose an account, and a bank, that you are sure can cater to your specific financial and lifestyle needs now and into the future, he says, “so don’t just settle for the cheapest option; rather find the account that adds real value now and has the capability to evolve with you and continue to add value into the future.”

 

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