What you should look for in low-cost bank account

With everyone trying to tighten their budgets, many are looking for innovative ways to save. Lowcost banks are drawing more and more attention.

Low-cost accounts offer many of the same features of a regular account but at a fraction of the cost. To ensure that lower banking fees don’t come with reduced functionality, you have to look for certain features.

It must do everything your old account can do

Look for the same features your regular bank account offers: debit orders; POS swipe; online banking; a mobile app; and online airtime, data, and electricity purchases.

It must make banking cheaper

The low-cost bank account you choose should save you money on bank fees no matter how much you spend.

How you use your low-cost account will determine how much you save on bank fees.

You get the largest savings when you choose to withdraw and deposit at the till instead of the ATM or branch, but there are many other ways that lowcost bank accounts help you save money on bank fees.

Compare the costs of a dozen transactions on your old account, with how much they would have been on the low-cost account.

It must include a savings pocket or account

The ideal low-cost account grows your money through a linked high-interest savings account and allows you to transfer money to and from it easily and without charge.

It must be travel ready

The easiest and most efficient way to access your cash when overseas is to open an account that lets you use your bank card internationally.

Usually, this convenience comes at a price, so it’s important to compare international banking fees when you are looking at the various bank accounts on offer.

It must be secure

Choose an account that offers safe and secure online and mobile banking as well as additional security features like letting you turn your card on and off.

Shirley Smith is COO at Old Mutual Finance