If you're an idealist who thinks that just because you're a poor student, your sympathetic bank charges you less, think again. Student banking is big business and while the major banks try to entice you with perks, there are also many pitfalls.
Being a student means running from one lecture to the next, running out of petrol and running out of money on a regular basis - and for most students, managing their meagre funds starts with a student account.
The bigger banks offer accounts aimed at students, and these accounts boast lower charges and some free transactions. But apart from these concessions, student accounts can be very costly to manage.
As always, it is vital that you know your service fees and find out what the competition has to offer.
ABSA
You have to be a full-time registered student at a tertiary institution to open a Student Silver Cheque Account with Absa. There is no minimum amount required to open this account nor to keep it open.
The monthly service fee is R7 for up to three transactions, R9 for four transactions and R12 for five or more transactions. (These fees cover all transactions, except withdrawals from a Saswitch ATM.)
Cash withdrawals are free over the counter or at an Absa ATM. However, if you withdraw money from a Saswitch ATM, you pay R7.20 for the first R100 and R0.90 for every R100 thereafter.
There are no charges for cash or cheque deposits.
You don't earn credit interest on a credit balance in your account.
There is no automatic overdraft limit on a student account, but you can apply for an overdraft and the amount granted will be based on your credit profile and any surety that you can offer. Accountholders are issued with an ATM debit card and cheque books are available on request.
In addition to student accounts, Absa has 10 student bureaux close to the country's big campuses. These bureaux specialise in providing banking services, including financial advice and loans to students.
First National Bank
The Student Life Start Transmission Account is available to full-time and part-time students between the ages of 18 and 25 who provide proof of registration at a tertiary institution.
No minimum balance is required to keep the account active.
Up until the end of last year, First National charged a flat service fee of R2.16 for every cheque drawn on a student account. Normal fees and charges applied to transfers and account payments.
But, at the beginning of this year, a new monthly service charge of R7.50 was introduced. If your charges for the month amount to less than R7.50, that is the most you will pay. But, if your fees are above R7.50, you pay R7.50 plus the additional charges.
Every time you draw cash over the counter, it costs you R8 and a flat-rate fee of R2.28 at the FNB ATM. At a Saswitch ATM it costs you R7 for the first R100, plus R0.80 for every R100 thereafter to a maximum of R90.
There is no charge to deposit a cheque into the Life Start account but cheques take seven working days to clear. If you are prepared to pay R37 for special clearance, the funds can be made available within two to three working days.
FNB pays you a one percent interest rate on a positive balance.
There is no overdraft facility and if you do not leave enough money in the account for fees to be deducted, you will be charged 23 percent interest on your debit balance.
New student transmission account customers are not issued with cheque books as in the past, but existing accountholders can continue to use cheques. Every cheque you issue costs R3.10 for the first R100 and R1.45 for every R100 thereafter, to a maximum of R24.50.
Existing cheque book holders can get a new one when their cheques run out. Alternatively, you can get a Visa debit electron card.
When you pay for purchases with your debit electron card, you pay R1 for every transaction.
If your card is retained by an ATM, it will be replaced for free. However, if you lose the card within the first year it will cost you R30 to replace. There is a R10 monthly card fee.
Subscribing to cellphone and internet banking is free, and telephone banking costs R8 a month. But remember that you still pay for certain transactions. Account transfers online or via cellphone banking cost R0.55 and setting up or amending a stop order on the internet or your cellphone will set you back R2.30.
Nedbank
Nedbank offers cheque and savings accounts for students.
- Savings account
The Young Adult Savings Account is available to full-time students at any tertiary institution from the age of 19 years. You must maintain a minimum balance of R30.
Nedbank's fees will change at the beginning of July, but at the moment there is no monthly service fee on the savings account.
Cash withdrawals from a Nedbank ATM cost R0.80 for every R100 or part thereof and R4.90 plus R0.90 for every R100 or part thereof at a Saswitch ATM. Cash withdrawals over the counter are free.
Cheque deposits into the savings account are free.
The first two cash deposits in every charging cycle are free, thereafter you pay one percent of the value of the cash deposit with a minimum charge of R13.
Nedbank's charging cycle generally runs from the 26th of the month to the 25th of the following month. These dates can change slightly if they fall on public holidays or Sundays.
The interest rate on a positive balance in a savings account varies between two percent and 7.5 percent depending on the balance.
There is no overdraft facility and be warned that if your account goes into debit, you will be charged penalty interest of 23 percent a year.
You can have a Maestro debit card linked to this account which you can use for payments at any shops which display the Maestro sign.
- Cheque account
Students can also open a cheque account and get a NedCheque debit card, provided somebody provides a guarantee.
The fee for every cheque you issue is R1.43 for the first R100 and R0.86 for each R100 thereafter or part thereof to a maximum charge of R12.72.
To withdraw cash from a current account over the counter costs R1 for every R100 or part thereof, with a minimum fee of R13.
Withdrawing cash from the current account using a Nedbank ATM costs R2.28, plus R0.80 for every R100 or part thereof. Withdrawing cash from the current account using a Saswitch ATM costs R7.18 for every R100 or part thereof, plus R0.90 for every addi
To deposit cash into a cheque account costs R1 for every R100 or part thereof with a minimum charge of R10 for amounts greater than R300.
Cheque deposits into your account are free.
Money in your account will earn 0.5 percent interest daily.
The overdraft rate is negotiated on an individual basis.
NBS
Any full-time tertiary student can open an NBS savings or transmission account. NBS does not charge students monthly service fees. The other fees were reviewed in May.
Cash and cheque withdrawals at any NBS branch or NBS ATM on both accounts are free. Withdrawals from a Saswitch ATM cost you R5.30 for the first R100 and R0.75 for every R100 thereafter.
Each day, the first R500 of any cash that you deposit is free of charge. Thereafter you pay fees on a sliding scale. For every R100 between R501 and R10 000, you pay R0.80 plus R0.65 for every R100 beyond R10 000. So, depositing R16 000 will cost R115.
Cheque deposits cost R8.40 to clear immediately or you can wait for 14 days for the cheque to clear at no charge.
Interest on a positive balance will depend on the account you have.
On a savings account, the interest rate varies between 0.75 percent and seven percent, depending on your balance. On the transmission account, you will earn one percent for a positive balance irrespective of the amount in your account.
NBS does not offer an overdraft facility on either of these accounts.
There is no monthly subscription fee to make use of telephone and internet banking but other transaction charges do apply.
NBS cards are debit cards, so they can be used at any place that displays a Visa electron sign.
Through the BoE online banking site ( www.icanonline.co.za), NBS also offers tailored student bank cards to students at Damelin and Allenby. These cards entitle students to the normal icanonline facilities with no monthly fee as well as access to online learning facilities.
Standard Bank
To qualify for the Student PlusPlan account, you have to be between 16 and 24 years and a full-time student at a recognised tertiary institution.
The current fees on the Student PlusPlan were introduced in October 2001. These are based on the ordinary PlusPlan savings account fees with certain concessions, such as no monthly service fee on your account.
You get five free debit transactions a month. These are ATM cash withdrawals, debit orders, inter-account transfers, electronic account payments and debit card transactions.
Cash withdrawals over the counter cost R25 and at a Standard Bank ATM they cost R4 for the first R100 plus R1 for every R100 thereafter.
At a Saswitch ATM you will pay R5.20 plus R4 for the first R100 plus R1 for every R100 thereafter.
Cheque deposits are free, as are cash deposits under R500. For deposits of more than R500, you pay R2.50 plus 0.9 percent of the amount of the deposit above R500.
Interest rates on the Student PlusPlan account vary between 1.5 percent and three percent, depending on your balance.
After the five free debit transactions and for any other kinds of transaction, you pay the same charges as other PlusPlan accountholders.
AutoCheques, which are cheques issued by Standard Bank AutoPlus machines, cost R8 plus the electronic account payment fee which is R3 for the first R100 and R0.60 for each additional R100 or part thereof to a maximum of R11.
Students are given an AutoBank card which can also be used as a debit card for payment at Maestro merchants. Purchases on your card cost R2.20 for every transaction.
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