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Thread: Help with Bank Accounts

  1. #1
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    Help with Bank Accounts

    Hi Guys.

    So now that I've passed honours, I need to start considering, planning and getting my future started.
    The first step is now to get a proper bank account, as at the moment I'm using a student account from FNB
    and the second they see a salary going in, I'll lose the account ... not to mention the student account
    is not building any credit ratings for me or anything.

    I have looked at 2 options so far.

    The 1st is an Investec Account which will cost me R200 per month and includes all transactional fees. I have
    heard the are very good if I need a home loan or a car loan or something. The one thing I really like is the
    ability to create up to 20 free cash management accounts to put money aside and still have access to it for
    short term savings. I think it also includes fees of withdrawing at any ATM.

    The 2nd is an FNB Platinum Cheque Account, which will cost me R99 per month and includes all transactional fees
    (I think it includes the cost of the credit card as well). As far as I know, I can create 1 free cash management account.
    If I withdraw at any other ATM other than FNB, it will cost R32 to withdraw (FNB ATM is free)

    What would you guys recommend as a good bank account for me to get started with as I begin my articles? I would like
    to build a good credit rating, receive preferential rates for a future home loan, and possibly car loan down the line.

    Is Investec worth the double the price monthly fee? (I believe it's R275 if you're not doing articles.)

    Are there any other accounts I should consider.

    Just one thing to keep in mind, is that after my pilots license, I plan to save for another 6 months to 1 year, and buy an
    appartment when I move out instead of renting ... but that's a discussion for another topic ... but hence why I'd like to get
    good credit ratings, etc.

    Regards

    Itai
    If you need any Accounting, Tax or even Financial Management advice, PM me and I'll try help and keep your information confidential.

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  2. #2
    Site Caretaker Dave A's Avatar
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    If FNB is offering you a Platinum cheque account right out of the gate and at those rates, you're going to find it pretty tough to get better elsewhere.

    I don't think the "building a credit track record" issue really affects the "which bank" decision much. Ultimately that comes down to how you manage your account and the banks seem to pass that data around between them on request anyway.
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
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    Quote Originally Posted by Dave A View Post
    If FNB is offering you a Platinum cheque account right out of the gate and at those rates, you're going to find it pretty tough to get better elsewhere.

    I don't think the "building a credit track record" issue really affects the "which bank" decision much. Ultimately that comes down to how you manage your account and the banks seem to pass that data around between them on request anyway.
    Well they haven't offered anything yet ... but from what I've read, I can register as a young professional, which then gets that account.

    It's not just building a credit track record, but building it with the bank. What I've heard is that with Investec, you phone your banker, tell him you'd like to buy a car or whatever, and the next day you have the papers delivered to sign ... I really like that.

    Also, from what I'm told ... everything is couriered to you because they don't have their own branches, which means I can get stuff at work (whereever that may be), and the courier fees are already included.

    Some people also say Investec offers the best rates for loans, at least for them compared to any other bank.
    If you need any Accounting, Tax or even Financial Management advice, PM me and I'll try help and keep your information confidential.

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  4. #4
    Site Caretaker Dave A's Avatar
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    Investec provides private banking services for high nett worth individuals, as opposed to the more commonly known retail banks.

    But retail banks will do the runaround for you too if you're "worth it" to them

    Most banks will give preferential treatment to you as a young professional as compared to their "average" customer. It's based on the principle that most people don't change banks easily once they're settled.

    Thing is, it is rarely in your best interest to assume that just because a particular bank provides you with the best option for a cheque account, that:
    1. it will always be that way, and
    2. it will automatically ensure the best deal for any particular piece of financing you may want either now or in the future.

    They're all out to make a profit out of you one way or another at the end of the day.
    Last edited by Dave A; 16-Nov-10 at 03:44 PM.
    The trouble with opportunity is it normally comes dressed up as work.

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    Agreed ... it's not the cheque account I'm worried about ... the main points I've found out with FNB are:

    - R32 if you withdraw at any other ATM ... and sometimes FNB atm is down or not where I am (Investec is free at all ATMs)
    - You still need to pay extra for the credit card (still doesn't total R200 Investec fee though)
    - You don't earn interest on a positive balance (As far as I understand, you do with the Investec account)
    - I won't get a private banker until I earn 320k (I will with Investec, and this is very important because of the time constraints with audits).
    If you need any Accounting, Tax or even Financial Management advice, PM me and I'll try help and keep your information confidential.

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    Email problem KimH's Avatar
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    Eitai, firstly congrats on passing your honours.

    With regards to banks, have you considered Nedbank Private Bank yet? I have been a client since 2005 and can honestly say the service is fantastic - the fees are R200 per month and unlike ABSA platinum you actually have a dedicated private banker.

    I would like to share a quick story with you. In 2009 after spending 3 months trying to find a bulldog, I finally found one in Gauteng. Due to the enormous amount of bulldog scams doing the rounds I was exceptionally cautious. Anyways I did the transfer of R7000 for the dog plus air cargo and crating costs, got the flight details from the breeder and went to the airport to collect my dog. On arrival at the cargo area I was told by security to go to another building, on arrival there I spoke to the kindly gent behind the counter, he checked his logs and said no dogs had arrived, he even went to the holding area to check for me, nothing. Mild panic sets in, I call the breeder - her phone is off, continue trying to call her for 10 minutes,... phone still off - mild panic is now anger. I contacted my private banker, told her that I suspected I had been scammed and what could be done about the EFT I had done the previous day, she called me back as I was driving home and told me that they had closed the breeders bank account and my funds would 'bounce' back after a few days. As luck would have it, as I hung up from that phone call the breeder called me, long story short - the bulldog had been on the plane and was actually at the first cargo area I had gone to (where the security guard had told me I was at the wrong place) - I had told the breeder that her account may have been closed and advised that she go to the bank the next day, I in turn called my banker as well. As it turns out the breeders account had been closed but that was sorted out. I'll never forget the breeder saying to me.... 'who the hell are you' and my response was simply 'just a nedbank private banking client'

    The bulldog is fit, fat and filthy

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    Quote Originally Posted by KimH View Post
    Eitai, firstly congrats on passing your honours.

    With regards to banks, have you considered Nedbank Private Bank yet? I have been a client since 2005 and can honestly say the service is fantastic - the fees are R200 per month and unlike ABSA platinum you actually have a dedicated private banker.

    I would like to share a quick story with you. In 2009 after spending 3 months trying to find a bulldog, I finally found one in Gauteng. Due to the enormous amount of bulldog scams doing the rounds I was exceptionally cautious. Anyways I did the transfer of R7000 for the dog plus air cargo and crating costs, got the flight details from the breeder and went to the airport to collect my dog. On arrival at the cargo area I was told by security to go to another building, on arrival there I spoke to the kindly gent behind the counter, he checked his logs and said no dogs had arrived, he even went to the holding area to check for me, nothing. Mild panic sets in, I call the breeder - her phone is off, continue trying to call her for 10 minutes,... phone still off - mild panic is now anger. I contacted my private banker, told her that I suspected I had been scammed and what could be done about the EFT I had done the previous day, she called me back as I was driving home and told me that they had closed the breeders bank account and my funds would 'bounce' back after a few days. As luck would have it, as I hung up from that phone call the breeder called me, long story short - the bulldog had been on the plane and was actually at the first cargo area I had gone to (where the security guard had told me I was at the wrong place) - I had told the breeder that her account may have been closed and advised that she go to the bank the next day, I in turn called my banker as well. As it turns out the breeders account had been closed but that was sorted out. I'll never forget the breeder saying to me.... 'who the hell are you' and my response was simply 'just a nedbank private banking client'

    The bulldog is fit, fat and filthy
    Hi Kim, thanks for sharing the story. Didn't realise Bulldog's went for so much

    I personally won't touch Nedbank due to a family vendetta against them ... they nearly financially crippled my sister due to stuff ups on their side. Of course this wasn't the private banking section, and it took lots of lawyers and friends on the inside of Nedbank to sort it out.

    Regards

    Itai
    If you need any Accounting, Tax or even Financial Management advice, PM me and I'll try help and keep your information confidential.

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    Banks generally are not that interested in building relationships and you will often find that even after banking with one bank for 20 years that another bank will give you better rates for mortgages and loans. Save your money and bank with capitec - so you don't get a cheque book, who cares, and grab a virgin CC- at least when you go to other banks looking for a morgage they will see you are a savvy customer. If you have to bank with the evil 4, FNB is the best IMO.

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    Quote Originally Posted by Pap_sak View Post
    Banks generally are not that interested in building relationships and you will often find that even after banking with one bank for 20 years that another bank will give you better rates for mortgages and loans. Save your money and bank with capitec - so you don't get a cheque book, who cares, and grab a virgin CC- at least when you go to other banks looking for a morgage they will see you are a savvy customer. If you have to bank with the evil 4, FNB is the best IMO.

    While I agree with you in the first part of your statement, from what I've heard ... Investec builds very good relationships with their clients.

    And I just found out I earn interest on the positive balance of my cheque account which means provided I keep enough money in there (which isn't all that much), the monthly fee will already be covered.

    I think they've sold me with that because no one else offered me interest on my cheque account +ve balance.
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  10. #10
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    I have been with FNB for 17 years now. I have had one or two issues over the years but nothing terrible. I have been approached by other institutions like Investec but have always thought that they were first a merchant/corporate bank and after that a individual bank. At FNB I am like any other client (is this a good or bad thing?) but at Investec I would be a high net worth customer that demands and get more personal attention. Personally I would rather blend into the woodwork than stick out. Clients that I play golf with that have Investec cards tend to be more flashy with their Investec cards, like it is a status symbol.

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