There are different types of bank accounts in South Africa, with different features, functions and disadvantages and we hope to show the details. There are different bank account anyone can decide to open in South Africa, and each of them have their importance. Everyone knows that in these times, it is appropriate to open a bank account where you can save and invest your money. It is risky to keep very huge amount of money at home, as robbers could be attracted, and one can even lose the money.
Having agreed that the best thing to do is to keep one’s money in a bank, it is left to decide on the type of bank account to settle for, as we have stated earlier that there are different types of bank accounts in South Africa. Hence, in this article, we will explore these things and provide an appropriate guide. Nevertheless, we should also admonish that you reach out to individual banks before making a decision, as this will enable you to compare the services they offer, including bank charges.
Types Of Bank Accounts In South Africa
There are four major types of bank accounts in South Africa. Here are they, as well as their importance:
1. Savings Accounts
As famously known, it is a deposit account which every bank in the country offers. It offers a modest interest rate as well as principal security.
A savings account, although has some similarities with other types of accounts, is unique. With one, you can easily deposit your cash or withdraw cash. So, if you want something very flexible, you can always go for this.
Although you may not be able to use checks unlike a cheque account, the fact that it is pretty flexible has given it an edge. You can always withdraw your money whenever you desire, unlike some other types of accounts where you must wait for a stipulated period of them (as agreed with the bank).
Nevertheless, you should be prepared for bank charges, and it varies from bank to bank (which is why we encouraged that you visit individual Banks)
2. Cheque Accounts
This account has some similarities with savings account, but they are quite different. With this too, you can deposit your money and be sure that it is safe in the bank. Also known as current account, what made this account stood out from the rest of the pack is the fact that owners are given check books.
Nevertheless, you can still withdraw your money via automated teller machines (ATM) as well as Internet banking. Nevertheless, one thing that should be added is the fact that this account is expensive to operate compared with savings account.
If you want to open a bank account for your business, you might want to consider this, as it is a nice one that should suit your interest.
3. Money Market Investment Accounts
Here are much enhanced accounts. They are actually premium money market investment accounts. Different Banks offers several competitive interest rates. These are entirely different from the usual savings and cheque accounts. It is not a specified investment period, but you have to deposit too.
The Money Master Account is nice if you desire to start saving for the future. It works in such a way that your money earns interest. So, when the tenure is ripe, you get your initial deposit, as well as interests.
This account (which is also known as money market deposit account) is quite unique no doubt. It is offered by some banks in the country, and you should ask your bankers for more details.
This is pretty different from money market funds. MMFs are investment vehicles that are volatile (that is, worked based on the market performance and may lose value).
4. Mzansi Account
A Mzansi Blue Account is another major type of account in South Africa. It is also pretty unique and cool. It is simple and affordable. It is a transmission account which anyone can open in any South African Bank.
To open this, just walk into any bank in the country. We should note that it was made for folks who have never had a bank account before (and may not have a stable income). So, if you know both savings and cheque accounts are beyond you, you can always opt for this.
It should also be added that bank charges apply for the service as well as for withdrawals at ATMs. Despite its simplicity, you can still use it to deposit cash, as well as withdrawals.
One of the things that point to the fact that a society is truly developed is the high rate of people who are banked. And so, South Africa is doing all that can be done to ensure more people enjoy banking services. You can simply opt for any of these bank accounts in any South African bank, and get started.
In conclusion about the different types of bank accounts in South Africa, if you are wondering what the requirements to open any of these bank account will be, you should simply walk into the bank and ask the workers on duty all that you want to know (they will gladly help you). With your own bank account, you can be assured of the safety of your money (your money is safe in the bank).