Switch banks and start saving
When times are tough and money’s too tight to mention, it makes sense to reassess the way you spend and save. One area where most people could benefit from a financial make-over is the way they bank. But did you know that despite the offer of lower fees, superior products and better service, according to research from Capitec Bank, 34 percent of people stay with the same bank for over 20 years? This is because it’s assumed that moving banks is complicated, time-consuming and will cost you money. Capitec Bank, a retail bank focused on providing South Africans with affordable, accessible and simplified banking, explains how changing your bank can be quick, easy and can save you money.
Carl Fischer, Executive: Marketing and Corporate Affairs at Capitec Bank, says, “In these fast-paced, cash-strapped times, consumers are looking for simplified, straight-forward solutions that are affordable and suit their needs. But to make smarter financial choices, consumers need to empower themselves.”
What to look for?
Fischer believes that choosing the ideal bank should be based on comparative decision-making - similar to when buying a TV set or a car. To access the necessary information about personal funding, interest rates and unique benefits, he suggests visiting a bank’s website, popping into a branch to speak to a consultant or calling their client care centre for information. “Comparing the cost of typical transactions such as monthly administration fees, cash withdrawals and stop and debit orders can save you money. For example, drawing R1 000 from at a Capitec Bank ATM will cost you R3, compared to between R3.65 and R6.50 at other major banks. Also, while other banks charge for debit card purchases, with Capitec Bank these transactions are free.
Fischer says that people should also take convenience into consideration. “Find out whether the bank has branches close to your home or office, what time they open, and if you are out on the road, whether you are able to access your money elsewhere. For example, Capitec Bank clients are able to draw cash for only R1 at leading retailers such as Checkers and Pick n Pay. It also offers clients the convenience of internet banking.”
Opening an account
Once you have researched your options, switching banks or opening another account at another bank (it’s possible to have different accounts with different banks) is simple. Says Fischer, “To apply for an account you will need your identity document and a proof of residence.”
When your application is accepted, your current bank will need your authorisation to provide your new bank with details of debit orders and any other transfers. You will also be asked to authorise your debit orders and inform those organisations of your new banking details. To avoid returned debit orders, it’s important that you do this before closing your old account.
There you have it – when money’s too tight to mention, it saves to look around for the best banking deal. Fischer’s parting advice is to ensure that you only consider a reputable bank – one that is regulated by the banking ombudsman – and which will cater to your needs quickly and professionally.
