Question:
How should I bank and manage my accounts in order to pay as little bank charges as possible? Also, which accounts do you recommend if I want to earn the most interest?

Answer:
In a time of high interest rates and market uncertainty it’s important to review the way we spend and save money. One such practical option is to take control of your spending and use a debit card. You can draw cash, pay for goods and services and manage your account easily and cheaply. Make sure you draw cash at your own bank’s ATM — it’s cheaper, and don’t allow debit orders to bounce as this is an unnecessary cost to you.

Capitec Bank offers a gold debit card enabling you to make debit card purchases with zero transaction fees. Moreover, you can make cash withdrawals using your debit card at any Pick n Pay, Shoprite or Checkers till point for just R1 or you can draw cash from a Capitec Bank ATM for only R3.

A debit card is a good way to save on bank charges and is just like using cash, only safer. If you want to earn the most interest on your savings — up to 11 percent — Capitec Bank’s Global One Banking Facility enables you to do so. You earn interest from the first rand saved and if you choose a fixed savings plan you’ll earn even more.

Question:
I want to get a credit card as I think it will help me pay for things more easily. What do I need to know before I get a credit card and what are the differences between a debit and credit card?

Answer:
Both debit and credit cards offer the convenience and safety of not having to carry cash to pay for goods and services.

While credit cards are useful for purchases where you don’t have the full amount available in cash upfront, you need to remember that they are loans which you need to repay. If you are unable to repay the full amount owed within 30 to 60 days, depending on the card, you will be charged interest on the outstanding balance. This interest can add up if you’re not careful and can end up costing you far more than the original item was worth. Interest charged on a credit card is higher than other loans, so be careful about getting yourself into debt that you can’t repay.

Debit cards on the other hand allow you to manage your budget more carefully as you cannot spend more money than you have in the bank. This is because when you make a purchase or draw money using a debit card, payment is taken immediately from your account. If the money is not available in your account, the transaction will not be authorised.

Obtaining a debit card is easier than obtaining a credit card as the bank doesn’t need to check your credit rating beforehand. And you only need to open a savings, transmission or cheque account with your bank of choice to have access to a debit card.

For further information about Capitec Bank, click here!

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