Is it time to change your bank account?

It’s always worth taking stock of your financial products, and ensuring these are the right fit for your current needs. This is especially true at the start of the year, when service fees are invariably increased.

We sought advice from Absa Retail Banking to help you optimise one of the most fundamental financial products in your portfolio - your bank account.

Bank account options

Start the assessment process by asking yourself, “Am I paying too much for services that I don't use?”

An Absa consultant says, "Customers don't always realise how much value they can get from their bank account. They’re often under the impression that they pay fees in exchange for holding a bank account, and that's where the service ends. However, this is where it actually begins."

Most banks offer customers a variety of value-added services. If accounts are structured correctly and if customers bank smartly, a lot of banking value can be unlocked,” the consultant says.

"Customers need to take control of their finances and familiarise themselves with the different banking options that are available in the market."

To bundle or not?

Many customers don't pay attention to how they use their banking facilities, which can result in excessive fees, Absa says.

There are two basic banking options, these being pay-as-you-transact, and bundle accounts. If your monthly transactions are limited, a pay-as-you-transact account would be better. If, however, you need to withdraw money, swipe your card and/or use internet banking regularly, then a bundle account would probably be a better option.

"This small change could easily save you large sums of money that could be used to top up your monthly savings account," says Absa.

Extra benefits

Some bank accounts offer extra benefits such as concierge services or access to airport lounges. Although these benefits can seem worthwhile, you should consider whether you will use them. Ask about the fees for subscribing to these services and measure this against the cost of using them without a subscription.

If banking with your spouse, a possible extra benefit is partner discounts. Absa notes that it’s always worth asking your bank about this.

Funeral policies are a potential value-add that can provide assistance when it’s most needed. Check to see if your bank's value bundle offers you any lump sum amounts on the passing of a loved one.

It’s important to conduct a full assessment of what your bank account is offering. You may find it’s worthwhile upgrading, downgrading, or switching bank accounts entirely.