A bank account is a safe and useful place to keep all your money. You enter into an agreement with the bank, and they provide you with a service. They provide you with peace of mind; you know that your money is safely and securely deposited into a bank account of your choice. A bank account is also convenient, as you can access your money from any ATM. It is also makes it easier to save and invest your money for your future.
Type of Bank Accounts
Opening your own bank account is the beginning of effective financial freedom and management. However, it is imperative to select the correct account that suits your financial needs. Banks offer different accounts, so it is advisable to speak to one of the consultants for assistance. The different types of accounts offer unique services, charges and benefits; therefore it is important to select the account tailor made for you.
- Cheque or Current Account – A cheque or current account usually requires a minimum qualifying salary. Deposits, withdrawals, debits and transfers are permitted, and there are numerous benefits available for this account. The interest rates are usually low and there is a nominal monthly fee, and you can use your debit or cheque card to make payments and purchases.
- CreditCard – A credit account helps you expand your financial resources. The interest rates are relatively higher and you can also use this card to make payments and purchases. There is also a qualifying minimum salary and you usually don’t pay any transactional fees.
- Savings Account – Is a deposit account that helps you save and provides you with security at an affordable interest rate. Some banks allow saving accounts to be used as transactional accounts. The banks need to be given notice when a large withdrawal needs to be made.
- Mzansi Account – This type of account has been created for customers who deposit or withdraw money on an irregular basis and don’t have a regular income. The bank fees, interest rates and qualifying criteria are usually low. Withdrawals and deposits can be made with your debit card and your funds can be easily accessed.
Money Market Account
This investment account offers you competitively high market-related interest rates. It is similar to a savings account, but you need to maintain a higher balance and a minimum deposit is usually required. This flexible, short-term investment accounts benefits vary according to each bank, so speak to a consultant.