2x bank accounts. Should I close one?

[Perform Computers]

Hi all,

I currently have the following accounts with FNB...

1x personal cheque account ( R99 p/m )
1x Business Cheque Account ( R169 p/m )

I'm thinking of closing the personal cheque account & opening up like a NO FEE PER MONTH bank account. I'm paying R99 p/m & I use my personal cheque account for everyday purchases.

I know Capitec or something have accounts where you do not pay monthly fees. I just can't get over the fact that I'm paying R99 p/m to have a shiny gold ATM card.

Please could anyone shine some light on this topic for me please. Like, how would this change affect me in the long run? Buying a house, car, applying for a home loan etc

[Dave A]

It's a good idea to keep your business and personal banking seperate. And Capitec seem to offer a good deal.

Please could anyone shine some light on this topic for me please. Like, how would this change affect me in the long run? Buying a house, car, applying for a home loan etc

As a business owner, typically both accounts will come under scrutiny:

Your personal account to assess what money you're getting out of the business,
Your business account to see whether that income stream is sustainable.

[league_of_ordinary_men]

Why is your Business Cheque Account so expensive?I pay R59 pm at FNB for my Business Cheque Account.

[Chrisjan B]

Why is your Business Cheque Account so expensive?I pay R59 pm at FNB for my Business Cheque Account.

Does that include Internet Banking fees?
My Internet Banking on ABSA is anything between R 180-00 and R 250-00 per month. Business.
I do not use a cheque book.

Personal account - use to be R 159-00 per month now R 79-00 per month plus R 18-00 per month for having an R 3 300-00 overdraft facility....

[Darkangelyaya]

Capitec is excellent. Plus you can have 3 additional savings accounts, and name it whatever you want. Even your business name. Neat.

[Chrisjan B]

Me and my wife both have Capitec accounts too..
BTW you can have a total 5 accounts....
Up to R 10 000-00 more interest than over, so you put the amounts over R 10 000 in the other account/s.....

[Chrisjan B]

Capitec is excellent. Plus you can have 3 additional savings accounts, and name it whatever you want. Even your business name. Neat.

Just keep in mind that the business name is just an administrative issue and it will only work if you are a sole owner.

You cannot use it as a business account per se...

[Blurock]

Does that include Internet Banking fees?
My Internet Banking on ABSA is anything between R 180-00 and R 250-00 per month. Business.
I do not use a cheque book.

Personal account - use to be R 159-00 per month now R 79-00 per month plus R 18-00 per month for having an R 3 300-00 overdraft facility....

Absa and Standard are the most expensive banks. Absa charge horrific fees for their internet banking, but at FNB it is free! For a fee of R18 a month and a measly R3300 overdraft you can rather get a credit card with a limit of R30, 000 and pay about R360 p.a.

You can also use the credit facility and settle the balance at the end of the month. If you stay in overdraft you pay interest on interest. NEVER carry a balance over to the next month because the interest makes it too expensive.

[wynn]

Get an FNB gold personal debit card account for R97 PM and you get full on as many as you like free swipes, even for a cup of coffee, the only expense is when you draw cash from another bank's ATM, you can have a credit facility for free (no availability charge) and you only pay if you use it
I am not sure what the Business cheque card costs but I am sure it is pretty much the same.

[league_of_ordinary_men]

Does that include Internet Banking fees?
My Internet Banking on ABSA is anything between R 180-00 and R 250-00 per month. Business.
I do not use a cheque book.

Personal account - use to be R 159-00 per month now R 79-00 per month plus R 18-00 per month for having an R 3 300-00 overdraft facility....

Yes it does include internet banking.And I don't use a check book as well.

[JoC]

I have just closed all my Standard Bank accounts as their fees are just daylight robbery! I now have an FNB account for business and a Capitec account for my personal banking. Our business account bank fee ranges between R55 - R100 per month depending on transactions. Capitec have a minimum monthly account fee of R4.50, free internet banking a free swipes on your card. Their transaction fees for debit orders, etc are much lower than other banks - believe me I checked! So far I'm very happy with this set up.

[PeterCarruthers]

If you can, my suggestion would be to increase your 2 accounts to 3. Two for the business, at different banks. One for yourself personally. Also at a different bank.

• I've had dozens of clients have much the same problem:
• Bank decides to cancel overdraft, for any one of a bunch of reasons.
• Bank doesn't advise client until month-end.
• At month-end, Clyde pumps up the bank account to pay monthend bills.
• Bank cancels overdraft on last day, because deposits have phoned up the account, so bank has less risk.
• All cheques bounce over the next week.
• Now that the client has bounced checks on record, no other bank will touch him (or her).
• That means, effectively, the client can no longer operate.

Contrast the above with having two business accounts. The moment one bank stops behaving, you can easily stop using them because you have another one lined up and ready to go.

This small-business thing is not just about making money. I think it's about protecting yourself from predatory behaviour from the institutions.

[Pap_sak]

I use the capitec for personal and use one of the accounts as business. You can give it your business name and it has a separate account number - so you can send/receive money on it as well as debt orders BUT all POS purchases come of the main account.

I also have an FNB account for the overdraft and use it's card for petrol purchases.

[Blurock]

Get an FNB gold personal debit card account for R97 PM and you get full on as many as you like free swipes, even for a cup of coffee, the only expense is when you draw cash from another bank's ATM, you can have a credit facility for free (no availability charge) and you only pay if you use it
I am not sure what the Business cheque card costs but I am sure it is pretty much the same.

The business cheque card is free. Pays for coffee, business expenses, petrol (no garage card for me, thanks) but does not pay for tolls (due to PIN required) and also gives you e-Bucks. You also get a rebate on your petrol spend* (terms apply).

[Darkangelyaya]

WHATEVER you do, just don't ever consider Standard Bank!
The handful of people who work there showing some integrity really do not make up for the greed and absolute incompetence of the rest, and the company as a whole!