The PEPmoney Account is a low-cost savings account that enables account holders to transact and save money at a low cost. The account is backed by Absa and comes with a gold MasterCard for easy transactions. The account is primarily suited for people who prioritize saving and have a low transaction rate.
The PEPmoney Account has some restrictions when it comes to transacting since it is dedicated to savings. However, many transactions can be conducted for free, especially household expenses. The free transactions are there to supplement the withdrawal charges that come with the account.
To better understand the PEPmoney account and how it works, read the following summary.
PEPmoney Account Summary
The PEPmoney Account is a savings account that is supported by Absa Bank. The account includes a gold debit card for easy transactions and allows withdrawals from any PEP store, Absa ATM, and Shoprite or Checkers. Absa ATM withdrawals cost R6.50, whereas PEP Store, Shoprite, and Checkers withdrawals cost R1.60.
Account-holders can use their account to send money to third parties at any retail partner store or Absa ATM. For cash sent from the account at any PEP store, Absa ATM, Shoprite, or Checkers, a fee of R8.45 is charged.
Since the account is a savings account it comes with some restrictions. The daily withdrawal limit is restricted to R1,500.00. Furthermore, monthly transactions are capped at R25,000.00 and the monthly account balance must not exceed R25,000.00.
The amounts are put this way so that the account isn’t used as a cheque account even though one can transact. However, there is a huge positive for those that save money in the account. The account comes with a 3% interest per annum on a positive account.
The PEPmoney Account cannot be accessed through an app, but it can be accessed via cell phone banking. You can use PEPmoney cellphone banking to buy prepaid, pay bills, get a loan, and more.
The manner in which funds are deposited into the PEPmoney account distinguishes it from the banking industry standard. There are two methods for depositing funds into the account.
The first method is to purchase a 16-digit PEPmoney token from any PEP store and load it using a cell phone. The amount you paid for the PEPmoney token will be credited to your account.
The second method is to transfer funds to the account via wire transfer. This means that funds can be transferred to your PEPmoney account from other bank accounts.
With a PEPmoney account, you can get a free funeral plan. The funeral plan cover is discussed below and how you can get it.
Free Funeral Cover to PEPmoney Account Holders
PEPmoney Account holders can earn a funeral benefit by performing simple tasks on their accounts. The coverage is available only to PEPmoney Account holders and is free of charge. The funeral plan covers death caused by an accident or natural causes. The death benefit is R5,000.00, which is paid to the nominated beneficiary.
To qualify for the PEP funeral plan, you need to do the following:
- To begin, activate the funeral plan benefit by entering an issued USSD code and following the instructions.
- To stay covered, make a deposit to your PEPmoney account at least once every 30 days.
- Every deposit made to the PEPmoney account restarts the 30-day cover automatically. For example, if you make a deposit on January 1, 2022, you will be covered until January 31, 2022; however, if you make another deposit on January 10, 2022, you will be covered until February 9, 2022.
All you have to do to keep your funeral plan going is to make deposits every 30 days. The advantage of this funeral plan is that you are covered immediately after submitting a successful application. Furthermore, money is transferred to your beneficiary within 48 hours of receiving all required documents.
PEPmoney Account Fees 2022
|1||Monthly Account Fee||Free|
|2||Cheque deposit Fee||Free|
|3||CashSend withdrawal at an ATM||Free|
|4||ATM mini statement||R7.50|
|5||ATM full statement||R15.00|
|6||Cash withdrawal at an ATM||R6.50|
|7||Cash deposit at an ATM||R4.50 + R1.50 for every R100.00 deposited|
|8||Cash withdrawal at PEP, checkers, or Shoprite||R1.60|
|9||Card replacement fee||R20.00|
|10||Cash send using mobile banking||R8.45|
|11||Interbank Money transfer||R1.25|
|12||Deposit via token||Free|
|13||Prepaid purchase via cellphone banking||Free|
|14||Bill payment via cellphone banking||Free|
|15||Balance inquiry via cellphone banking||Free|
Advantages of the PEPmoney Account
- It comes with a free funeral plan.
- The account offers a 3% interest rate on a positive balance.
- Money can be withdrawn at ATMs and other retail stores that include PEP, Shoprite, and Checkers.
- The account doesn’t need too much paperwork to be opened.
- There is no monthly account fee which makes keeping the account open affordable at all times.
- Transaction fees are very low on some transactions with no fees charged at all.
Disadvantages of the PEPmoney Account
- The interest rate is lower when compared to other fixed deposit account issuers in South Africa.
- The account doesn’t allow for flexible money usage when it comes to savings and transactions.
- One cannot save to meet all his/her needs. Therefore, if you are planning to save towards buying an item that costs more than R25,000.00, the PEPmoney Account is not a suitable account to have.
PEPmoney Account Requirements
- You must be at least 18 years old at the time of application.
- Have a South African ID book or Smart card.
- Have a minimum deposit of R20.00 to activate the account.
- Must have your mobile phone to activate mobile and internet banking.
- You must not be on a FICA hold with Absa.
The PEPmoney Account provides an entry-level banking experience, with the account resembling that of students and for those in their early youth. This account can be very useful for those who don’t transact much but want to save money for a specific goal. The account’s interest rate is moderate, making it appealing to those who want to save while spending some of the money in their account.