How to open a bank account for your parents

Your parents or grandparents may have grown up in a time when not everyone had bank accounts. Perhaps they preferred working with cash, or maybe it just wasn’t the norm to work through banks.

Whatever their reasoning, it may be beneficial to them to have a bank account today. We have a look at how you can help them open a bank account, and we consider how you should choose one.  

Tip: You could get credit online. Find out more about Mobicred.

Setting your parents up with a bank account

In these times of social distancing, it may seem ideal to visit a bank branch to set up an account in place of your parents or grandparents. However, with fraud at an all-time high, banks are cautious about allowing in-lieu activities.

Zwelibanzi Phiri, managing director of Capnovation, says, “Most banks would advise you to go with your parents to the bank. According to South African law, when you open a personal bank account for someone, they need to be present.”

In 2018, nearly 32% of South Africans had no bank account – as per an article we published here. Part of the reason for this is the problem of onboarding. At the time, many banks still required clients to visit a branch to open a new account.

Nowadays, the majority of banks have digital offers, and it’s possible to open a bank account online, or through an app. Phiri considers this a loophole you can use to assist your parents and grandparents.

Verification will be required via a cell phone number, selfies and digital documentation. You can help your family member from the comfort of home and go through the prompts with them, assisting them every step of the way and making sure they get set up correctly.

READ MORE: Banking errors – Are you giving your money away?

How to select the right bank

Phiri suggests choosing a bank that aligns with your personal preference and banking style. Similarly, you should assist your loved one by finding out what they’re looking for, and making them aware of their options.

“They should consider how often they plan to withdraw money, how often they want to deposit, and how often they would like to send money using cardless transfers,” says Phiri.

Find out more about Mobicred – a digital credit card you can access from anywhere.