Help with Bank Accounts

**Dave A** · 16-Nov-10, 12:52 PM

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.

**eitai2001** · 16-Nov-10, 02:03 PM

Originally posted by Dave A

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.

**Dave A** · 16-Nov-10, 03:38 PM

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:

it will always be that way, and
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.

**eitai2001** · 16-Nov-10, 06:27 PM

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).

**KimH** · 17-Nov-10, 05:10 AM

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

**eitai2001** · 17-Nov-10, 05:26 AM

Originally posted by KimH

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

**Pap_sak** · 17-Nov-10, 09:50 AM

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.

**eitai2001** · 17-Nov-10, 05:56 PM

Originally posted by Pap_sak

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.

**greghsa** · 17-Nov-10, 07:18 PM

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

.

**eitai2001** · 17-Nov-10, 08:44 PM

Originally posted by greghsa

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

.

For some it is a status symbol ... I'm more worried about the real benefits :P

**dcs** · 17-Nov-10, 09:51 PM

Firstly, let me congratulate you on your honours.

For what its worth, I hate all banks equally. What you gain on the swings, you lose on the roundabouts, etc etc. The big four are not really in competition, merely monitor each other in terms of bank charges, interest rates, branch locations and so on.

The private banks tend to have far more stringent requirements to qualify for an account with them. Investec specifically waives requirements for CA's and aspirant CA's. I guess the other private banks would be pretty similar.

In terms of rating which bank is better, the big four will vary with the branch manger and the actual staff member you deal with. Capitec would also fall under this category. The private banks will give you much better service because you have a private banker on the other end of the phone and only get that with a business account in the commercial banks.

The real issues with banks only arise when the sh1* hits the fan. You should, despite your qualification, read some material on banking. There is a ton of it, and depending on what you plan to do with your life, the 'Crashproof your business' book by Peter Carruthers is a good starting point. That uncommon sense might make you plan to open accounts at more than one bank.

David

**Dave A** · 17-Nov-10, 10:13 PM

Originally posted by dcs

the 'Crashproof your business' book by Peter Carruthers is a good starting point.

Should be compulsory reading for CA's in my opinion.

**KimH** · 18-Nov-10, 01:03 AM

Originally posted by eitai2001

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

The Mervander line of bullies (drool) are much more expensive.

Sorry to hear about what happened to your sister, sadly this type of incompetence from so many businesses these days is far too prevalent - hope the new Consumer Protection Act does it's bit to pull things together.

At the end of the day all banks have their positive and negative points and the only way to truly find the right fit is probably by trial and error.

**OnePilot** · 18-Nov-10, 06:37 AM

Crashproof should be compulsory reading for all wannabee entrepreneurs and business owners - especially start ups

Help with Bank Accounts

Help with Bank Accounts

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