ABSA provided Personal Finance with the following information about their banking for children accounts aimed at the under-18 market: Absa Bank – MegaU is a transactional savings account designed for under-18s. You need at least R10 to open an account. The account has a debit card. You can also bank by cellphone. MegaU offers Notify Me, a free SMS transaction notification service, and free cash deposits for amounts below R500. There is no monthly administration fee. The MegaU account has two charge options: MoneyBuilder and FuturePlan.
The Daily Savings Account is available to all Capitec Bank clients. Minors thus receive the same interest and cost benefits as do other account holders. A single account also eliminates the need for a minor to change accounts once he or she turns 18. If parents or grandparents want to restrict a child’s access to the account, they can retain the Global One Gold Card. If a minor does not have the card, he or she cannot transact on the savings account. Once the parents or grandparents believe that the child is ready to transact, they can simply hand over the card. The account is already in the name of the child, so no paperwork is required to enable the child to transact.
First National Bank (FNB)
The Fluid Account is a transaction and savings account for clients who are no older than 18. There is no requirement for a minimum balance, but, if you maintain a minimum balance of R1 000, you will not pay a monthly management fee. Otherwise, the management fee is R5 a month, which includes two free qualifying transactions. Qualifying transactions include FNB ATM cash withdrawals, payments, transfers, debit orders, card purchases and prepaid purchases. The FNB Fluid debit card gives you access to discounts on a range of products, including: up to 20 percent off educational toys and videos; up to 20 percent off baby accessories; 20 percent off cinema tickets; 35 percent off 70 magazine titles; 15 percent off music CDs; 10 percent off airtime; up to 20 percent off the recommended retail price of various computer games and gaming instruments; up to 10 percent off computer and cellphone accessories; up to 15 percent off various bus services; up to 15 percent off most major airlines; and 15 percent off various tour packages.
The bank’s Nedsave account is available for use by minors. Children under the age of 16 can open the account in their own name with the consent of their parent or legal guardian. The following are free: self-service banking, eNote (SMS notification service), the first two Nedbank ATM withdrawals a month, and the first R100 over-the-counter withdrawals and deposits a month. There is no monthly administration fee. The JustSave product is available to clients of all ages as a pure savings mechanism. The product offers tiered interest linked to your balance. There are no fees. If you link your JustSave account to your NedSave account, the stop order is free and Nedbank will also credit the JustSave account with R2 per stop order.
The Sum1 debit card account is available to children under the age of 16. A minimum of R20 is required to open an account, which comes with a debit card. The first four debit transactions and cash deposits each month are free. There is no monthly management fee and no internet banking subscription fee. You are entitled to unlimited free electronic balance inquiries. The PureSave account pays interest on even the smallest balance.
A PureSave account is open to children of all ages, and adults too. A minimum of R50 is required to open an account. Savings may be accessed any time, and any amount of money can be deposited at any time. There are no monthly management fees.
ContractSave is a savings product with the option of earning interest for someone who wants to save for a big-ticket item, such as a deposit on a car. There are no fees. The minimum monthly investment is R100, and the minimum term is one year. You receive bonus interest at the end of every year, up to four years.