Staying loyal to your bank for lots of years might not be the best option as you are probably paying too much in account fees. However, the good news is that competition among the big four banks and Capitec who have taken the market by storm is fierce. The big question is which is the best bank in South Africa? Lets us help you find it.
There are other competitors that are also entering the market. If you like change and different things, there are other companies particularly in the fin-tech space that allows you to transact in simpler ways. While some are basic, they are bound to become more sophisticated in their offerings in the future.
Regarding traditional banking, the Capitec Global One Account offers the cheapest transactional account in general. This is according to Solidarity’s 2016 Bank Charges report. The global one account is also in the Top 5 Most Liked Products on Likemoney. Capitec’s no-frills approach and policy interest currently at least 5.35% on positive balances is what keeps it at the top of the affordability list. Capitec also now offers a credit card, which is bound to gain even more attention.
Runners-up include Absa and FNB who have closely copied the Capitec model. Meanwhile, Standard Bank and Nedbank are said to have experimented with different types of accounts.
In connection with what was spoken about above, you can never be sure from one year to the next which bank will offer you better rates. It is best to compare bank accounts at least on an annual basis to ensure you are still getting value for money.
In terms of traditional banking, switching bank accounts can easily be done online. However, after filling our the forms, it can take an average of 45 days to complete the process. Although with a good understanding of the process, switching does not have to be a difficult procedure. The best way to switch is to keep both new and old bank accounts open until debit orders, and other transactions have been switched to the right bank account and all payments in and out are operating smoothly.