What to look for in a low-cost bank account

Shirley Smith

With everyone trying to tighten their budgets, many are looking for innovative ways to save and stretch their money, with lowcost banks getting increased attention.

Low-cost accounts offer many of the same features of a regular account but at a fraction of the cost. However, not all low-cost bank accounts are created equal, so here is the lowdown:

It must do everything your old account can do

It would be counterproductive to save on banking fees if you then had to pay for services that weren’t provided by your low-cost bank account.

Look for the same features your regular bank account offers.

It must make banking cheaper

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

The best way to establish how much your new account can save you is to compare the costs of a dozen transactions with those made on your old account.

It must include a savings pocket or account

The ideal low-cost account is one that 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 secure

Keeping your money safe and secure is the main priority.

Choose an account that offers safe and secure online and mobile banking, as well as additional security features.

Shirley Smith is COO at Old Mutual Finance. This was first published on Old Mutual Finance’s blog.