Attractive accounts for elders and children

2012-04-14 13:18

Grandparents often want to open a bank account for their grandchildren to encourage them to save.

The problem with many existing products is that there is always a monthly bank fee that eats into the children’s savings.

While perhaps a good lesson in the cost of banking, such bank fees hardly encourage children to save their pocket and birthday money.

Bidvest Bank has since removed its R15 monthly account fee for all customers under the age of 21, and pensioners pay no transactional charges. The account makes it a very attractive offer for both grandparents and their grandchildren.

Kids’ banking
Parents who want to instil a sense of financial discipline in their children can, for example, open a Bidvest Bank account for their teenagers and deposit enough money each month to cover their entertainment and even basic living requirements, such as clothes and toiletries. With no monthly fee and no charge for transactions at the till point, teenagers can manage their own money at no cost.

The account can also be used to save birthday and pocket money as the minimum amount to open the account is R50 and it pays out some interest, although limited.

The account does have fees for debit orders and ATM withdrawals, but if used as a basic transaction account to buy items using the card it is very cost effective.

Cash withdrawals can become expensive as Bidvest Bank has a limited number of ATMs – only 52 across the nation – and customers have to rely on other banks’ ATMs, which can be more expensive. Customers can reduce their withdrawal costs by drawing money for R2 at major retailers such as Pick n Pay and Checkers.

However, if they use another bank’s ATM, it would cost about R11.50 to withdraw R500, for example.

Pensioners’ banking
Bidvest Bank has waived all fees for customers over the age of 65. This means free banking, even if the customer withdraws cash from a non-Bidvest ATM.

The only time fees will be charged is a penalty fee of R10 if a debit order is returned or for over-the-counter transactions, as opposed to ATM or internet banking.

Bidvest Bank also offers excellent deposit rates. For example, their 121-day notice account pays an effective interest rate of 6.5%, so a pensioner could keep their savings in the 121-day notice account and have the interest paid into their no-cost bank account.

Ordinary banking
For customers between the ages of 21 and 65, Bidvest Bank has capped the fees at R72 a month. This means that no matter how much banking you do, your fees will never exceed R72.

As it is a basic pay-as-you-use bank account, if you only do a few transactions a month your banking fees could be lower. While not as competitive as Capitec Bank for low transactional users, for those customers who make frequent transactions every month, this bank account could save you a significant amount of money.

The downside is that Bidvest Bank branches are fairly limited, with only 52 across the nation and only found in major retail centres. However, if a Bidvest branch is within reasonable distance and you want to open an account for your children or as a pensioner, this is definitely an account to consider.


Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.