Old Mutual Bank has launched a transaction account for middle-income earners which it claims is the cheapest available. The account will cost you a flat fee of R85 a month, provided you limit yourself to a basket of transactions.
Company:
Old Mutual Bank.
Name of product:
Everyday Account.
What it is:
A transaction account with the option of a chequebook.
How it works:
You can conduct all the normal transactions, such as transferring money between accounts and paying accounts. The account can be accessed using a debit card, telephone, cellphone, the internet or MutualAssist self-service terminals.
Who should apply:
To qualify for the account, you need to earn a minimum gross income (that is, before tax and other deductions) of R3 000 a month.
Minimum balance:
You do not need to maintain a minimum monthly balance.
Interest earned on credit balance:
None.
Costs:
You do not pay an annual fee for the cheque card or the garage debt card. You do not pay a subscription fee to bank via the internet, cellphone or telephone.
For a fixed monthly fee of R85, you receive a basket of transactions, which include:
- Unlimited debit card and garage debit card point-of-sale purchases;
- Up to four cash withdrawals from Old Mutual Bank and Nedbank ATMs;
- Unlimited balance inquiries at Old Mutual Bank/Nedbank ATMs;
- One cash deposit at an Old Mutual Bank or a Nedbank ATM, or over the counter at an Old Mutual Bank branch;
- One over-the-counter cash withdrawal at a branch of Old Mutual Bank;
- A chequebook and unlimited cheque payments;
- Unlimited inter-account transfers, account statements and beneficiary payments using the internet, telephone, cellphone or MutualAssist terminals;
- Unlimited stop orders (including initiating new stop orders and cancelling, amending and processing stop orders); and
- Unlimited debit orders.
Old Mutual Bank and Nedbank have a combined national network of 1 200 ATMs.
There are 50 MutualAssist self-service terminals in branches of Old Mutual Bank and in shopping centres around the country.
Additional fees:
These are levied if your monthly transactions exceed those in the basket of transactions.
For example, if you make more than four cash withdrawals in a month, you will be charged R7 for each withdrawal.
It is also expensive if you use ATMs other than those of Old Mutual Bank and Nedbank.
For instance, a balance inquiry at a non-Old Mutual or Nedbank ATM will cost you R4.
Cash withdrawals and cellphone airtime top-ups using non-Old Mutual Bank and Nedbank ATMs will cost you R8 plus R0.90 for every R100. After the first monthly over-the-counter cash withdrawal, additional cash withdrawals at an Old Mutual Bank branch will cost you R1.10 per R100, with a minimum of R16. Cash withdrawals at Pick 'n Pay tills cost R7 each.
Discounts:
Old Mutual clients qualify for a discount of R30 on the monthly fee of R85.
To qualify for this discount, you need to route at least two debit orders through the Everyday Account: one debit order in favour of Old Mutual (for say, a policy or medical scheme contribution) and another that must pay an Old Mutual Bank homeloan. The discount works on a rebate basis, which means you will be charged R85 a month and credited with R180 every six months, provided you continue to qualify for the rebate.
Old Mutual clients who switch their homeloans to Old Mutual Bank will not be charged a debit order switching fee.
There will also not be any bond registration, valuation or initiation costs typically charged on a new homeloan because, provided you qualify for it, Old Mutual Bank will offer your a consolidation facility.
A consolidation facility is a loan into which you can pool all you debts at a single interest rate.