South Africa’s most cost-effective current accounts – your guide

In tough economic times, it pays to cut costs where you can. This includes choosing a current account that suits your financial needs and budget.

We explore the South African current accounts that offer the best value for money, comparing products from various banks, monthly fees, transaction costs, minimum balances, perks, and more.

What are the most affordable current accounts in South Africa? 

Cost-effective accounts provide a useful entry point into the banking system, especially to meet the basic banking needs of young adults or those new to formal banking.

Here’s our pick of affordable current accounts.

What is a current account? 

A current account is designed to meet your day-to-day banking needs – receiving deposits, making withdrawals and electronic payments, and using a debit card to make purchases.

It’s also used to receive salary or wages, set up stop orders or direct debits, and pay bills quickly at a relatively low cost.

What makes some current accounts more affordable than others? 

It’s wise to carefully compare different current accounts before making your choice.

Many attract no or low monthly fees, but your main goal should be to get the best value for money, rather than simply choosing the account with the lowest costs.

Consider the following key factors when establishing which account offers you the best benefits.

Monthly fees

If you want to save money, it may be helpful to choose an account with no or low fees.

Be aware, however, that some accounts with low monthly fees may charge higher fees for individual transactions, which can add up quickly.

You may also need to maintain a high minimum balance to avoid penalties, which can be a challenge.

A slightly higher bank fee may be better if you pay less at your bank’s ATM, for example, which will save you on withdrawal fees.

Some accounts may offer interest on your balance, which could offset the cost of slightly higher fees and provide more value.

If you have a more expensive account, you may be able to access useful additional offerings, such as a loan facility or credit card.

The way your bank manages an overdraft facility could also make a difference, in terms of fees. For example, check if you’ll be charged if your account is overdrawn.

Low bank fees are a plus, but it’s worth finding out what other costs may apply, and whether the account really offers the best overall value for your needs.

Transaction fees

Transaction fees are charges for actions performed on your account. These transactions include salary or cash deposits, electronic transfers, ATM cash withdrawals, direct debits, bill payments, debit card purchases, bank transfers, loan repayments, and more.

You may perform many transactions a month, so keeping costs low should be a priority.

To reduce costs, look for a current account that offers:

• Free cash deposits at bank branches and ATMs
• Free point-of-sale transactions
• Free transfers between accounts at the same bank
• Free or low-cost transfers to other banks
• Free online and cell phone bill payments
• Free electronic statements
• Low foreign transaction fees

ATM withdrawal costs

Although many people transact digitally, cash is still widely used in South Africa, and this is unlikely to change soon.

You can withdraw money at till points at large retailers, but you may still use an ATM for convenience or out of necessity.

However, cash withdrawal costs can be relatively high, especially if you use an ATM belonging to another bank (up to R10 per R1,000, compared with around R2 to R5 at a till point).

Particularly if you make many ATM cash withdrawals a month, do your homework before you select a current account.

Digital banking features

Access to digital banking is a plus as you don’t have to visit a branch or use an ATM to do transactions.

Look for:

• A bank with a secure website that is easy to navigate
• A user-friendly app that makes it easy to manage beneficiaries or schedule recurring payments, for example
• Transactional capabilities that include EFT options, QR codes, or scan-to-pay payment features

Other useful features include budgeting tools, statement access, card control, transaction limits, two-factor authentication, biometric login, virtual cards, cardless cash withdrawals, and good customer support.

Customer service and support 

Banks promote self-service, but it’s good to know there’s help available if you need it.

Customer service is vital for a good banking experience. When you choose a specific bank’s current account, find out:

• Whether customer care representatives are available and responsive, should you need help
• Whether you’ll have to queue at a bank branch for certain services
• Whether assistance is available in your home language
• Whether the bank encourages customer feedback

Top affordable current accounts in South Africa

Here’s our overview of top South African current accounts offering good value for money. (The information is correct at the time of publication.)

Bidvest Bank Grow Account

The Bidvest Bank Grow Account is a transactional account with a savings pocket. There are two pricing options – a pay-as-you-transact option with a R6 a month administration fee, plus individual transaction costs, and an all-in-one option at R185 a month.

The account has no minimum income requirement, and pensioners are not charged an administration fee.

You can earn interest on the savings pocket with a balance as low as R1.

Overview and features

If you access Bidvest Bank’s other offerings, including savings and investment products, they can be linked to your Grow Account. You can also instantly pay other Grow Account holders using the bank’s mobile app, via QuickPay.

Fees and charges

• Debit order charge: R5
• Cash withdrawal rate at Bidvest ATMs: R7 per R1,000
• Cash withdrawal rate at any Saswitch ATM in South Africa: R10 + R3 per R100
• Cash deposit rate at local retailers: R19.50
• Cash withdrawal rate at local retailers: R5

Benefits and drawbacks

Transaction costs can be high, especially if you transact frequently – expect to pay R7 per internet banking payment and R2 per mobile banking payment, for example. 

If you make many transactions, the all-in-one pricing option could provide better value.

There’s no rewards programme, but Grow Account cardholders get 25% discount at Bidvest Premier Lounges at airports.

FNB Easy PAYU account

The 2024 Solidarity Bank Charges Report, which compares the fees charged by South Africa’s five largest banks, named FNB’s Easy PAYU account the cheapest bank account for consumers with a low income and basic needs.

A monthly fee of R5.25 includes several free transactions, including cash withdrawals at till points and airtime purchases.

Overview and features

FNB’s Easy PAYU account has some distinct features, including helping you to save on everyday essentials.

You can earn grocery rewards with your account – for example, you get a grocery voucher of up to R100 when swiping your card at Shoprite, Checkers, or Usave. You pay only 99c for a R5 loaf of brown bread at any Shoprite store when swiping.

You can also get 15% back in data on your FNB Connect SIM Plan when buying prepaid airtime, data, voice minutes, and SMS bundles, and you receive a monthly quota of free WhatsApp messages.

You can earn eBucks and travel discounts, such as R50 discount per ticket on bookings made with QuickBus via the FNB app.

Fees and charges

The following charges apply:

• Debit order: R3.75
• Cash withdrawal at FNB ATMs: R10 per R1,000 up to R2,000; thereafter, R14 per R1,000
• Cash withdrawal at other banks’ ATMs: R12 per R1,000 up to R2,000, and R2.40 per R100 thereafter
• Cash deposit at FNB ATMs: R1.60 per R100
• Withdraw cash at selected retailers using Cash@Till for R1.50 a transaction

Benefits and drawbacks

FNB’s Easy PAYU account has the benefit that you only pay for banking services you use and that airtime purchases are free.

You enjoy unlimited card swipes at no extra cost, and you can save with features such as Bank Your Change®, which rounds off card transactions to the nearest rand and saves the difference in a savings account.

However, some transaction fees are high, so you should carefully monitor your banking behaviour.

Absa Transact Account

The Absa Transact Account aims to meet your banking needs even if you earn less than R3,000 a month or don’t have a regular income. The monthly fee is R5.50, and you must maintain a minimum balance of R20.

The 2024 Solidarity Bank Charges Report named this account as the second-cheapest account for low-income customers.

Overview and features

This basic, affordable account allows free unlimited card debit swipes and till-point withdrawals. You can also send money via CashSend, even to people without bank accounts (for R10 per R1,000).

The account also includes R5,000 lump sum life cover for the first 12 months.

Fees and charges

The following fees and charges apply:

• Debit order: R3.50
• Cash withdrawal at Absa ATMs: R10 per R1,000
• Cash withdrawal at Saswitch ATMs: R12 per R1,000
• Cash deposit at FNB ATMs: R2.50 per R100

Benefits and drawbacks

The account’s simple, practical features will appeal if you’re a lower-income earner and want everyday convenience. Bear in mind that although you don’t need a regular income to apply, you will still need a minimum deposit to maintain your account.

Some transactions attract fees, and the embedded life cover is relatively low compared to similar offerings from other financial institutions.

However, you get monthly value-adds if you complete at least five debit or credit card transactions monthly, including at least two prepaid transactions.

You can also earn cashback through the Absa Rewards programme, which you can join for free. For example, you can get 50% off Nu Metro movie tickets and up to 30% cashback from travel partners.

Nedbank MiGoals 

According to the 2024 Solidarity Bank Charges Report, which compares personal transaction accounts at South Africa’s five biggest banks, the Nedbank MiGoals account is the cheapest in the low-income profile category, at R5 a month.

Overview and features

This affordable pay-as-you-use account offers free card purchases, and benefits such as 50% off all Nu Metro cinema tickets.

Fees and charges

• Debit order charge: R3
• Cash withdrawal rate at Nedbank ATMs: R10 per R1,000
• Cash withdrawal rate at Saswitch ATMs: R10 + R10 per R1,000
• Cash deposit rate at Nedbank ATMs: R2 per R100
• Monthly maintenance fee: R5

Benefits and drawbacks

The basic account keeps fees relatively low and simple, with a focus on free card swipes at retailers, cashback, and other benefits.

For example, if you link the account to Nedbank’s Greenbacks programme at an additional cost of R30, you can enjoy 1% cashback on groceries, furniture, clothing, and pharmacy items. You can also get 25c a litre cashback at BP petrol stations.

Overall, this account is a low-cost, pay-as-you-use transactional account for clients who prefer simplified banking.

Standard Bank MyMo account

Standard Bank’s pay-as-you-go MyMo account, which has a low monthly management fee of R6.95, is designed for customers who want to pay for what they use every month.

Overview and features

The account offers free, unlimited card swipes and access to the banking app, as well as a no-fee Instant Money Wallet for customers who prefer to go fully digital.

No debit orders can be loaded against this account, which protects you from fraud. However, the product doesn’t yet have a bank card, and must be managed via cell phone banking.

If you’re between 16 and 25, you can also get a free subscription to the student discount app Varsity Vibe, offering deals from more than 100 retailers.

Fees and charges

The following fees and charges apply:

• Debit order: R3.50
• Cash withdrawal at Standard Bank ATMs: R9 per R1,000, up to R2,000 a month; thereafter, R2.40 per R100
• Cash withdrawal at any Saswitch ATM in South Africa: R10.50 per R1,000, up to R2,000 a month
• Cash deposit at Standard Bank ATMs: R1.40 per R100

Benefits and drawbacks

The digital-first account benefits customers who like to transact online or via the app. It enables cashless transactions via Samsung Pay, Apple Pay, SnapScan, Tap to Pay, and Instant Money.

The low monthly administration fee is a plus, as is the ability to access Varsity Vibe discounts and special offers. However, this only lasts for as long as you’re enrolled as a student.

You can also earn UCount points when shopping – the monthly membership fee is R25.

TymeBank EveryDay Account

TymeBank’s EveryDay Account offers an innovative, digital-first approach to banking.

A stand-out feature is that there are no monthly fees, and many transactions, including debit card purchases, are free.

Overview and features

TymeBank gives customers free access to the entire banking proposition at no cost. This includes being linked to GoalSave and Fixed Deposit savings accounts, which offer an interest rate of up to 11%.

You transact entirely digitally, but the bank has kiosks at more than 1,000 Pick n Pay, Boxer, and TFG stores across the country where you can open an account, get your debit card, and update your information. “Kiosk ambassadors” are on hand to assist with the onboarding process and queries.

Not having any physical branches means the bank can keep costs low. However, you can still access cash via bank-owned and independent ATMs, retail stores such as Pick n Pay, Boxer, and Checkers, or informal spaza shops thanks to partners such as Flash and Kazang. You can also deposit cash at Pick n Pay and Boxer till points.

Fees and charges

Although TymeBank minimises fees and charges, the following apply:

• Cash withdrawal at all ATMs (bank-owned and independent): R10 per R1,000
• Cash withdrawal at Kazang shops: R3
• Cash withdrawal at Flash shops: R7
• TymeBank customers can withdraw for free when using a TymeCode (accessible via USSD) at a Pick n Pay or Boxer store, or for R3 when using their debit card

Benefits and drawbacks

TymeBank operates as a digital bank, so if you prefer in-person banking services, this account won’t be the right fit for you.

However, there are advantages if you want to save, including free instant payments via PayShap and the EarlyPay feature, which allows you to have your salary paid a day early (provided that your employer processes it a few days before payday).

TymeBank partners with Pick n Pay and TFG. Pick n Pay customers can double their Smart Shopper points when using their cards, while TymeBank customers can receive a co-branded card when onboarding at a TFG kiosk.

Tips for choosing the right current account for you

The best account for you depends on your financial needs, circumstances, and goals. It’s vital to compare your options before deciding.

Consider the following factors before you make your choice.

What banking features do you need?

The banking features you need depend on your financial habits and lifestyle.

However, some core banking features meet the needs of most people looking for an affordable account. These include:

• Low or no monthly fees, to keep costs down
• Low or no minimum balances needed to open or maintain your account
• Several free basic transactions, such as free debit card purchases and electronic payments or transfers

Many accounts offer appealing options, such as loyalty programmes, access to various platforms, discounts, or rewards.

Always investigate the key benefits an account offers – for example, you may get funeral cover, which means you won’t have to take out separate funeral insurance.

What are the costs?

Many current accounts charge low fees, but charges for deposits, statements, and balance enquiries could push up your monthly costs. Some banks charge a standard fee for these services, so check whether you can opt for this.

You may want to consider bundled services, as some banks offer better deals if you have many accounts or services with them.

Choose a bank that is transparent about its fees and supports your banking habits. A reward programme may seem to add great value, but do you really need the benefits and are they worth the potentially high monthly fees?

If your cash flow is not regular, don’t choose an account with a minimum balance requirement, as you may be unable to maintain it.

To save on costs, go cashless where possible, and swipe your debit card when making purchases. Monitor your transactions and review the fees you’re charged every month.

If your bank charges high fees, consider switching to another bank that may better support your financial goals.

Which banks are closest or most conveniently located?

Check which retail stores allow you to withdraw cash, and the transaction fees, especially compared to ATM costs. Are these stores close to where you live or work?

Which benefits and perks will you use?

Make sure that the benefits and perks your chosen account offers are useful to you. Ask yourself:

1. What type of bank balance can I maintain?
2. Would I need or use an overdraft?
3. What type of transactions would I make most often, and how many would I make monthly?
4. Where and how would I deposit or withdraw cash?
5. How much transacting would I do online?
6. Where and how would I pay bills?
7. Do I shop online often?
8. Do I prefer in-person banking, making branch access a priority?
9. Am I trying to save more, meaning high-interest saving features would be helpful?
10. Am I ready for more banking features in the future, such as being able to access a home loan or invest funds?
11. Which perks would I use, and which would I ignore?

It’s important that you choose an account that aligns with your everyday behaviour and needs, rather than an ideal version of your banking habits.

Be realistic about what features you will use regularly to ensure you get the most value from your account.