The best banks for young professionals
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 bigger banks, it’s still essential that you choose one that suits your financial needs.
Here we compare accounts from First National Bank (FNB), Standard Bank, Absa, Investec, and Nedbank for young professionals specifically, to help you make the most informed decision.
|
PRICING |
|
Standard Bank Professional Banking Account |
Absa Bank |
Nedbank |
FNB |
Investec |
|
Monthly fee |
R215.00 |
R280.00 |
R180.00 |
R229.00 |
R295.00 |
|
|
ATM withdrawals |
Free |
Free |
Free |
Free up to R4,000 |
Free |
|
|
Cash deposits |
R9 per R1,000 or part thereof at ATMs; R18 per R1,000 or part thereof at branches (R70 min.) |
R80 for over the counter, plus R2.20 per R100; R2.20 per R100 at the ATM |
First R40,000 free at an intelligent depositor, after which R5 plus 90c per R100; R10 plus R1.80 per R100 at an ordinary Nedbank ATM |
Free up to R4,000 |
1.24% of the deposit value at an ATM; 1.36% at a branch |
|
|
Cash withdrawals |
R20 per R1,000 or part thereof (R70 min.) |
R80 for over the counter, plus R2.20 per R100 |
Free at a Nedbank ATM; R70 plus R1.80 per R100 or part thereof for a debit or cheque card withdrawal at a Nedbank branch |
Free up to R4,000 |
Free |
|
|
Card replacement fee |
R145.00 |
R70.00 |
Free |
1 free per annum thereafter R120.00 |
R265.00 |
|
|
American Express Charge Card |
- |
- |
50% discount (R2,225.00) for the first year only |
- |
- |
|
|
Credit Card Monthly fee |
R0 |
R0 |
R0 |
R0 |
R0 |
|
|
Credit Card Interest Rate |
Prime less 0.25% (dependent on what type of risk you are) |
- |
12% |
No set interest rate |
Linked to prime (currently 7%) |
|
|
CRITERIA |
Income |
No |
No |
Minimum R750 k per year |
Minimum |
Minimum R600 k per annum |
|
Age |
18 – 30 years old |
Under 35 years old |
Under 30 years old |
18-30 years |
Under 30 years |
|
|
Education |
Classical professional degree |
Medicine, Chartered Accountancy, Actuarial Sciences, Law, Architecture, Engineering, Aviation |
|
Engineering, Chartered Accountancy, Architecture, Law, Medicine, Actuarial Science |
- |
|
|
BENEFITS |
Access to financial planning |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Airport Lounges Access |
Domestic: 12 free Bidvest Lounge visits per year |
Domestic: Unlimited visits International: Six visits per year |
Domestic: Unlimited visits International: 10 visits per year + 1 guest per visit |
Domestic: Up to 10 lounge visits if you have bought the ticket with a cheque or credit card International: |
Domestic: Unlimited visits International: Unlimited visits |
|
|
Spouse Account |
- |
Yes |
Yes |
- |
- |
|
|
Travel Insurance |
Yes |
Yes |
Yes |
Yes, if you have a credit card |
Yes |
|
|
Other benefits |
Access to Mastercard or Visa offers, insurance and 24/7 emergency services contact centres |
Rewards earned when using Bolt |
Free forex delivery; 24/7 emergency assistance for card replacements; 24/7 concierge service for hotels, restaurants, or event bookings |
Up to 15% back in eBucks on domestic Uber rides (depending on your rewards level); free will drafting |
Fraud insurance |
The key take outs for choosing a bank
What is most significant to note is that Absa and Standard Bank have no minimum income criteria. Instead, clients can opt in to the solution. This lowers the barrier to entry and allows a larger base of young professionals to be eligible for the professional banking market.
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 educate 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 – with 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 FNB have increased their monthly service fees to R180 and R229 respectively over the last two years.
“Accessing the elect lifestyle benefits specifically is often hard and expensive, should one do it outside the bounds of professional banking,” says an in-branch Absa consultant. “Clients often hesitate when they hear the monthly service fees but fail to recognise the benefits that the account allows. It’s worth far more than what they are paying.”
The third take out is the access that these accounts allow to other financial products.
Nedbank offers up to 100% loans for home loan applications of up to R1,5 million, and vehicle finance applications up to R400,000. Absa offers up to R105% home loans for first-time home buyers, as well as prime less 1% on a first new or used vehicle.
“For many young professionals, acquiring assets like a vehicle and property is a big step,” says the Absa consultant. “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 financial advisors who walk consumers through the process, but also much-needed financial assistance.”
The best bank for young professionals according to Just Money
Nedbank’s Young Professional banking product came in as the cheapest, with its fees undercutting the rest by at least R35 monthly. It also offers comprehensive travel benefits, a competitive credit card interest rate, and is inclusive of spouse and children also benefitting from both wealth planning and lifestyle benefits.
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 individual financial goals.