4 Types of Bank Accounts To Consider Before Opening One

Having a bank account these days is the most ideal thing to do. In these times that we are leaving in, keeping money especially larger amounts in the house is risky. You could invite theft into your home or even misplace the money. It can also get worse too, imagine walking with R1000 (or more) in your purse or wallet. It’s uncomfortable and you could feel paranoid everytime you pass dodgy looking places.

Therefore, it is best that you keep your money safe and look into a bank account. There are a number of different types of bank accounts provided by financial institutions in South Africa. It is very important  to get enough information in order to make an informed decision. Consult individual banks before making a choice so you can compare the services offered including bank charges.

We have four main types of accounts in South Africa.

Savings Accounts:
This is a deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. A savings account is like a current account and few, if any, qualifying criteria apply. They can be used to withdraw cash and make deposits and direct debits. The account holder may not be able to write checks from the account (without incurring extra fees or expenses) and the account is likely to have a limited number of free transfers/transactions

Cheque Accounts:
A cheque account is a type of bank account where the owner safely deposits their money in to access it in case he/she needs to withdraw it. It is mostly referred to as a current account or a transactional account. The main feature of a cheque account is that it gives the cheque account owner the liberty to choose how he wants to access his money. The cheque account owner can access his funds via automated teller machines (ATM), Internet banking, telephone banking, and mail banking.

Money Market Investment Accounts:
These are premium money market investment accounts that offer competitive interest rates. There is not normally a specified investment period, but a minimum deposit may be required. The Money Master Account is perfect for any one who wants to start saving for the future and seeking a competitive interest rate. A money market account (MMA), also known as a money market deposit account (MMDA) or money market savings account, is a special type of account offered by some banks and credit unions. They are not to be confused with money market funds, which are investment vehicles and may lose value depending on market performance.

Mzansi Account:
A Mzansi Blue Account is a simple, affordable transmission account that can be opened in any South African Bank. This type of account is available at all South African banks and designed for people who have never had a bank account before and who may not have a regular income. Bank charges apply for the service and for withdrawals at ATMs. Mzansi accounts can also be used for cash deposits and withdrawals and include a Maestro or switch card.

There you go, info on everything you need to know. So what are you waiting for? Go to your nearest bank!