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Banking habits that will poke holes in your pocket

14 April 2021 Old Mutual

When it comes to choosing a bank account, consumers are spoilt for choice – there are unlimited account options to choose from, but consumers often miss opportunities to bank and realise savings at the same time.

“Consumers have different banking behaviours all of which depend on personal banking needs. It is therefore important for consumers to look for ways they can bank and save by taking advantage of some benefits attached to their account. For example, an account holder may have access to a banking app and not make use of it, however, this is a quicker, convenient, and cheaper way of banking,” says, Carol Nkosi, Senior Provincial Manager at Old Mutual.

Here are some of the ways consumers can maximise their banking account and save:

Bank digitally
Digital banking services are all about the speed of transactions, and in addition to that, they are cheaper and convenient to use compared to visiting a brick-and-mortar branch. Technology is also about security - a must in these times when account and personal information must be well guarded.

Save while you bank
Look for an account that enables you to save while you go by your daily banking. Some accounts offer a swipe and save capability linked to the bank account. This means as you swipe you are also able to direct certain funds towards your savings account.

“The Old Mutual Money Account is linked to a unit trust in the form of a savings and investment “pocket”. By merely turning on the SWIPE and Save functionality via the app or internet banking, the account also becomes a 'rainy day' fund, allowing South Africans to save, invest and earn as they spend” says Nkosi.

Understand your Rewards offering
Banking Rewards programmes are varied, and they offer different benefits, however, to derive the most value from your Rewards depends largely on your banking behaviour. It’s important to understand the structure of Rewards programmes because this may result in savings for the account holder.

According to the Old Mutual 2020 Savings and Investment Monitor, 54% of respondents said they had taken advantage of various Rewards programmes to supplement their incomes as the COVID-19 pandemic bit into household incomes.

Till point withdrawals
Till point withdrawals at retail shops are generally cheaper than making a withdrawal at an ATM. Speak to your bank to understand the cost of making cash withdrawals at a till point. This is a seamless process; you simply present your bank card at the till and the withdrawal is processed on the spot.

“Most consumers have been impacted financially by the COVID-19 pandemic, besides looking to make savings in other areas, banking is also one area where consumers can save, but it all depends on how they make use of the bank account. Fortunately, today’s one-stop accounts make sure that you as the holder are always in the driver’s seat and in control,” concludes Nkosi.

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