Young professional? Here is the best bank for you

By Danielle van Wyk

If you’re under 35, have a four-year degree, and you’re looking to take your banking experience to the next level, you may be considering young professional banking products.

While you generally can’t go wrong with any of the offerings from the big five banks – First National Bank (FNB), Standard Bank, Absa, Investec, and Nedbank – it’s still essential that you choose one that suits your financial needs.

This week Justmoney compares the offerings for young professionals from the big five in helping you make the most informed decision at the best price.

*The table below looks at prices, qualifying criteria, and benefits.

PRICING

 

Standard Bank Professional Banking Account

Absa Bank
Young Professionals
Account

Nedbank
Young
Professionals
Account

FNB
Young
Professionals
Account

Investec
Young
Professionals
Account

Monthly fee

R215.00

R280.00

R170.00

R209.00

R295.00

ATM withdrawals

First R10,000 free (thereafter R1.85 per R100)

Free

Free

R9,000 free (thereafter R1.90 per R100)

Free

Cash deposits

3 free (thereafter R1.85 per R100)

Free

5 free (thereafter R4.13+R0.80 or R100)

R9,000 free (thereafter R0.95 per R100)

1.20% of the deposit value

Cash withdrawals

Free

R4.50

Free

R9,000 free (thereafter R1.90 per R100)

Free

Card replacement fee

R135.00

R140.00

Free

1 free per annum thereafter R100.00

 

Free

American Express Charge Card

-

-

50% discounted for the first year only

-

-

Credit Card Monthly fee

R0

R0

R0

R0

R0

Credit Card Interest Rate

Prime – 0.25%

From 14.50%

15.25%

Ranges between 13 – 21 %

Up to prime

CRITERIA

Income

No
minimum, clients opt in

No
minimum, clients opt in

No minimum, clients opt in

Minimum
R5.5 k per month

Minimum R600 k per annum

Age

18 – 30 years old

Under 35 years old

< 30 years old

<30 years
old

< 30 years
 old

Education

Classical professional degree
only

Classical professional degree
only

Minimum
 4-year qualification

Classical professional degree
only

-           

BENEFITS

Access to financial planning

Yes

Yes

Yes

Yes

Yes

Airport Lounges Access

Domestic:
12 free Bidvest Lounge visits per year
International:
Unlimited Access

Domestic: Unlimited Bidvest Lounge visits

International:

None

Domestic: Unlimited visits
International: 10 visits per year + 1 guest per visit

Domestic:
Unlimited SLOW Lounge visits

International:
Priority Pass visits at R250 

Domestic:
Unlimited visits
International:
Unlimited SAA Voyager and Premier lounge access

Spouse Account

-

-

Spouse and kids can select any account and have access to the relationship banker

-

Second account at a reduced fee

Travel Insurance

Yes

Yes

Yes

Yes

Yes

Other benefits

Master Card benefits

10 Take me home trips per year within a 50 km radius
-

Travel card

Up to 15% off in eBucks on domestic Uber rides

Free Will drafting

  Fraud insurance

 

A breakdown of the key takeaways

What is most significant to note is that Nedbank, Absa, and Standard Bank have no minimum income criteria. Instead, clients can opt into the solution. This lowers the barrier to entry and allows a larger base of young professionals to be eligible for the professional banking market.

“The professional banking sector allows young professionals to gain access to a range of benefits, from comprehensive access to financial wealth planners to full financial assistance when applying for products like home loans, personal loans, and vehicle finance. But the most important benefit is found in the support and tools offered to invest and save while signed up to this product,” says an in-branch Nedbank consultant.

For many young professionals, navigating the working world and trying their hand at financial management and the challenge of saving and budgeting effectively, remains. These accounts cater not only to this financial need but also educates clients on how to make their money work for them.

Standard Bank is an example of this through its Seed capital facility where its young professional clients are encouraged to kickstart their online share trading portfolio for R1,000 – through the bank’s guidance – and the bank will match that amount.

The second key consideration is the monthly fee. Noteworthy here is Absa's decision to stay its monthly fee, while Nedbank and Standard Bank increased its monthly service fees by 7% to R170 and R215 respectively in the last financial year.

“Accessing the elect lifestyle benefits specifically are often hard and expensive should one do it outside the bounds of professional banking. Clients often hesitate when they hear the monthly service fees attached to this account but fail to recognise the benefits that this account allows for. It’s worth far more than what they are paying,” adds an in-branch Absa consultant.

The third takeaway is found in the access that these accounts allow for when it comes to other financial products.

What stood out was the fact that Nedbank offers 100% on the first home loan applied for that is less than R1,5 million and vehicle finance that is less than R400,000. Absa on the other hand has discontinued the 50% discount on the home loan initiation fee.

“For many young professionals acquiring assets like a vehicle and a property is a big step and if they are just starting out it may be that they are unsure of where to seek the best financial advice on how to do so responsibly. This account offers not only the tools in the form of financial advisors that walk consumers through the process, but also much-needed financial assistance,” adds the Absa consultant.

Other benefits include advice and access to products such as investment planning, cash flow management, estate planning, retirement planning, and risk assessment.

Our verdict

Nedbank’s Young Professional banking product came in as the cheapest as it undercut the rest by at least R50 monthly.

Not only does it allow for the cheapest monthly service fees but also offers comprehensive travel benefits, a competitive credit card interest rate, and is inclusive of spouse and kids benefitting from both wealth planning and lifestyle benefits too.

However, it is always advisable to do your homework before signing up for any financial product to ensure that it will work for you and align with your specific individual financial goals.

*For further comparison on banking account products, click here.

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