This applies to cash deposits as well
As South African students prepare for university in the coming weeks, banks will be looking to capture a market of potential future earners through targeted account offerings.
Student accounts are generally offered to young adults between the ages of 18 and 25, who are studying towards a degree or diploma typically over three years.
They are marketed as low-fee accounts, that introduce students to the basics of transactional banking, while encouraging saving, and providing access to other student finance services (like student loans and even basic credit).
The low fees are possible because students tend to be low-intensity users, who do not handle large amounts of money; however, some accounts, like Standard Bank’ Student Achiever, do hike rates when transaction behaviour become more intensive.
While the likes of Capitec, Bidvest, and Old Mutual don’t offer a specific student package, their account offerings are priced in the lower tiers which could be appealing to students, if they are happy to pay full monthly fees, or just want to skip account graduation after completing their studies.
The comparison below outlines those accounts that are specifically catered and marketed to students, so the aforementioned banks do not feature.
FNB’s youth account, FNBy, offers a transactional and saving account for students (18 to 25) and school kids (under 18) alike, with two different sets of benefits and fees.
For students, the account carries a monthly fee of R10 per month. Students can withdraw R3,000 a month at ATMs for free, before regular rates kick in.
Standard Bank’s Student Achiever account offers a bundle of transactions for R9.99 per month; however this jumps up to R if the student exceeds the bundle limits.
On the 11th electronic transaction, R will be charged and if a student is over the age of 23, an additional R is charged (R in total).
The Absa Student Silver Account sets itself apart by having only one monthly fee the highest of the student accounts at R but then offering unlimited transactions from a pool of the basics. Continue reading “This applies to cash deposits as well”