A bank account is as essential as your `must have` Diesel jeans or
Sting shades - it is virtually impossible to go through life without
one.
Long gone are the days when cash was king and the sight of your
fistful of bank notes was enough to have shopkeepers salivating and
offering you hefty discounts. These days, shopkeepers` eyes are more
likely to gleam at the sight of your credit or debit card, rather
than your cash.
The reason: handling cash has become a risk for shops as well as
banks because of the high numbers of cash heists and robberies, and
the resultant increase in cash handling fees.
Many youngsters have their own kiddie accounts set up for them by
their parents and, by the time you are a student, you may be an old
hand at operating an account. But, if you have never had your own
bank account, the time when you are most likely to get one is when
you become a student.
Banks are keen to get you as a customer while you are young, even
though you have little or no income, because they hope that as you
grow older and your income grows bigger, you will continue to bank
with the same institution. While not all the banks offer accounts
specifically tailored to students, many do.
To open one of these accounts, you may have to provide proof that you
are a registered student, but it`s worth it, because you get special
discounts for which your working friends do not qualify.
Absa
Absa offers students a basket of products to help you to manage your money.
As a student you qualify for a Student Silver Cheque Account which
provides you with a personal cheque account and a debit card. You can
use the debit card at an automatic teller machine (ATM) to draw cash
or over the counter at a shop or restaurant that displays the Maestro
sign.
You can get teller-issued cheques from any Absa branch and a monthly
bank statement at no extra cost.
At Absa you get one account number for life, so if, after your
studies, you move to another city, you won`t need a new bank account
number.
You also get a two percent rate concession on student loans taken out
through Absa.
The service charges on your Silver Cheque Account depend on the
number of transactions you do in a month - on up to three
transactions, you pay R5 a month, four transactions will cost R6,40
and five or more transactions will cost R8,80 a month.
All you need to open the account is proof that you are a registered
full-time student.
First National Bank
FNB has a special account for students called Student BOB. With this
account, electronic banking transactions through FNB`s ATM network
are free and you pay a minimal flat fee of 88 cents for every stop
order, debit order or cheque withdrawal made from your account.
Apart from using ATMs to do your banking, you can also bank by phone
or use the Internet, although this requires a once-off linking.
To qualify, you generally have to be between the ages of 17 and 25
and must be registered as a student at a recognised tertiary
institution.
No opening balance or minimum monthly balance is required.
Nedbank
Nedbank does not offer a specific student account, but does give you
some extra benefits not available to working people.
There is no minimum income criterion for opening a NedBank cheque account.
As a student, you are charged only half the normal cheque account service fees.
Linked to a Nedbank cheque account is the NedCheque debit card which
allows you to pay for purchases simply by handing over your card.
Once swiped through the shop`s machine, the money is taken directly
off your account. A major benefit of a debit card is that you do not
have to carry large sums of cash.
If your financial needs are straightforward, then a Nedbank savings
account is ideal. The savings account is free for transaction charges
except for normal cash withdrawal fees which cost 57 cents for every
R100 you draw at the bank`s Cashpoint ATMs.
You do not need an income to qualify for a Nedbank credit card and
you receive and pay the usual interest rates.
NBS
NBS`s Bank Manager account is a combined transaction and savings
account which allows you to bank after hours and over the weekend
through NBS Phonebank while at the same time earning special savings
account rates.
The account offers a full range of facilities - you can draw cash or
cheques or settle bills electronically and set up debit orders or
stop orders. Best of all, as a student, you pay no bank charges.
You can choose between a book and a card with which to run your
account and whether you want to do your transactions face-to-face or
by Phonebank. Soon, you will be able to bank via the Internet as well.
To open a Bank Manager account, you need a R250 opening balance and a
valid telephone number.
Standard Bank
Standard Bank`s Student PlusPlan Account is a savings account for
students. All you need is R10 to open the account and, thereafter, no
minimum balance is required.
You qualify for free banking, so you do
not need to pay for your transactions, irrespective of how many. The
only time you will be charged a fee is if you use an ATM that does
not form part of Standard Bank`s network. The bank is charged a fee
by the other banks for these transactions and this charge is passed
on.
The Student PlusPlan account is a savings account and you will earn
interest on the money in your account during the month. You can
perform other transactions, such as pay your clothing store account
electronically or by debit or stop order.
If you need a cheque account, Standard Bank`s general requirement for
cheque accounts is that you must earn a minimum income of R2 000, but
the bank will consider each case on its merits. No discounts are
offered on cheque accounts, so your best bet is to stick to the
cost-efficient PlusPlan account.