What is the most cost-effective bank account for our parents?
Banks give their cheapest options for five EFT deposits, five debit orders and virtually no cash withdrawals
Q: My siblings and I support our parents. We all chip into a bank account in the name of one of my siblings, who manages the account which is used purely for my parents’ financial needs. Every month five deposits are made into the account via EFT; five debit orders are run off the account; and we pay money into our mother’s bank account, which is held at a different bank. Every so often we pay a doctor or service provider via EFT from the account. We make virtually no cash withdrawals. We’re looking for a more cost-effective bank account. What’s the best account for us, and what would we pay in monthly account fee and bank charges? - Anonymous via email
A: The responses from Absa, African Bank, Capitec, First National Bank, Nedbank, Standard Bank and TymeBank are listed alphabetically:
Omar Baig, the head of transactional banking at Absa, says the bank’s Flexi Value Bundle would offer the best value at R65 a month. The account offers a R15,000 funeral benefit; three free cash withdrawals from Absa ATMs, unlimited debit card and cash withdrawals at till points, and 11 electronic account and beneficiary payment transactions, which includes electronic payments and debit orders.
Neil Thompson, the head of product at African Bank, says the bank’s MyWorld account is ideal for customers sharing and co-managing a bank account. Based on the reader’s needs and mix of transactions, the fees could total only R20 a month (the cost of the five debit orders at R4 each) because the account attracts no monthly fee; EFT deposits are free; EFT payments are free and inter-account transfers are free.
Charl Nel, the head of communications at Capitec, says the bank’s Global One account would cost this reader R26.50 a month. The account attracts a monthly fee of R5; debit orders cost R3.50 each; EFTs R1; and payment to another bank via the app costs R8.
Ancley Jacobs, the CEO of consumer core banking at First National Bank, says the bank’s Easy PAYU account would cost the reader R25.45 in monthly fees. The account attracts a monthly fee of R4.95; EFT deposits are free; debit orders cost R3.50 each; EFTs cost R1 each; and payments to an account at another bank via EFT cost R1.
Vanesha Palani, the head of transactional products at Nedbank, says the bank’s Pay-As-You-Use account would best suit this reader and costs R31.90 in monthly fees. There is no monthly fee on the account; EFT deposits are free; debit orders cost R5.50 each; and electronic third-party payments cost R2.20.
Ross Linstrom, the head of communications at Standard Bank, says the bank’s MYMO account would cost the reader R23.95 a month in bank fees. The account costs R4.95 a month; debit orders cost R3.50 each; and electronic payments cost R1.50 each.
Cheslyn Jacobs, the head of sales and service at TymeBank, says the bank’s Everyday account is perfect for this reader and would cost only R10 a month. The account attracts no monthly fee and debit orders cost R2 each. EFTs cost R2 each.
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