Which Bank Is The Best for Students In South Africa?
Students in South Africa have different banking needs and preferences than other customers. They want low fees, convenient access, value-added services and financial support for their studies. Fortunately, there are several banks in South Africa that offer student accounts that cater to these needs. In this essay, we will compare and contrast some of the best banks for students in South Africa, based on their features, benefits and drawbacks.
## FNB – FNBy
FNB is one of the oldest and largest banks in South Africa, offering universal services such as investments, loans, savings, insurance and Islamic banking¹. Its youth account, FNBy, is designed for students (18 to 25) and school kids (under 18) alike, with different sets of benefits and fees².
For students, the account carries a monthly fee of R10 per month. Students can withdraw R3,000 a month at ATMs for free, before regular rates kick in. This applies to cash deposits as well. FNBy customers also have access to FNB’s eWallet and Send Money services².
Some of the advantages of FNBy are:
– Low monthly fee
– Free ATM withdrawals and deposits up to a limit
– Access to eWallet and Send Money services
– Access to FNB’s student loan products
Some of the disadvantages of FNBy are:
– Limited number of free transactions
– High fees for transactions outside FNB network
– No value-added services such as data, vouchers or discounts
## Standard Bank – Student Achiever
Standard Bank’s Student Achiever account offers a bundle of transactions for R9.99 per month; however this jumps up to R26.00 if the student exceeds the bundle limits. The bundle includes 10 free electronic debit transactions each month, with cash withdrawals up to a value of R1,350 at Standard Bank ATMs, and 2 free cash deposits at Standard Bank ATMs.
On the 11th electronic transaction, R26.00 will be charged – and if a student is over the age of 23, an additional R70.00 is charged (R96.00 in total)².
Some of the advantages of Student Achiever are:
– Low monthly fee if within bundle limits
– Free electronic debit transactions up to a limit
– Access to Standard Bank’s student loan products
Some of the disadvantages of Student Achiever are:
– High fees for exceeding bundle limits or using other ATMs
– No value-added services such as data, vouchers or discounts
– Age limit of 23 years
## Absa – Student Silver
The Absa Student Silver Account sets itself apart by having only one monthly fee – the highest of the student accounts at R26.00 – but then offering unlimited transactions from a pool of the basics. This includes unlimited Absa ATM cash withdrawals, cash deposits, ETFs, account payments, POS purchases and withdrawals and debit and stop orders. It also carries no subscription fee costs to notification services².
Any transactions not covered in the pool (other ATM withdrawals, cardless cash deposits, etc) revert back to the bank’s pay-as-you-transact fees².
The account also gives students 100MB of data every month, a discount meal voucher every month, food vouchers, R150 travel voucher and up to 30% gym membership discounts³.
Some of the advantages of Student Silver are:
– Unlimited transactions from a pool of basics
– No subscription fee costs to notification services
– Value-added services such as data, vouchers and discounts
Some of the disadvantages of Student Silver are:
– High monthly fee compared to other student accounts
– Fees for transactions outside the pool of basics
– No access to Absa’s student loan products
## Conclusion
In conclusion, there is no definitive answer to which bank is the best for students in South Africa. It depends on what factors are most important for each student, such as fees, convenience, services or financial support. However, based on this comparison, we can see that each bank has its own strengths and weaknesses.
FNB’s FNBy offers low fees and free ATM withdrawals and deposits up to a limit but has limited transactions and no value-added services.
Standard Bank’s Student Achiever offers low fees if within bundle limits and free electronic debit transactions up to a limit but has high fees for exceeding limits or using other ATMs and no value-added services.
Absa’s Student Silver offers unlimited transactions from a pool of basics and value-added services such as data
Source: Conversation with Bing, 22/04/2023
(1) Best Banks In South Africa 2022: Top 12 Most Reliable. https://bscholarly.com/best-banks-in-south-africa/.
(2) South Africa student bank accounts compared – BusinessTech. https://businesstech.co.za/news/banking/296352/south-africa-student-bank-accounts-compared/.
(3) Absa | Open a Student Account in 2021 and pay no monthly fee. https://www.absa.co.za/personal/bank/youth-student-banking/student-account/.
(4) 6 Top Student Loans In South Africa (2023). https://southafricalists.com/best-student-loans/.
(5) The best student bank accounts – JustMoney. https://www.justmoney.co.za/news/2015/10/27/the-best-student-bank-accounts/.
