What is a chequing account? 2025 Guide to personal banking in S.A

Most South Africans have used a “cheque account” at some point, even though paper cheques were phased out several years ago. Today, banks generally call these products current or transactional accounts, but the function is unchanged: it is the account you use every day to receive money and make payments. This guide brings the topic up to date for 2025, explains how these accounts work in a world without paper cheques, outlines common fees and digital payment rails, and helps you choose the right account for your needs.

What is a cheque (current) account?

A cheque, current, or transactional account is a demand-deposit account intended for frequent, everyday use. It is where your salary is paid, where debit orders run, and the account you use to swipe, tap, transfer, or draw cash. While the term “cheque account” persists in everyday speech, the paper cheque instrument has been retired; the modern account is fully electronic.

Why the name changed but the purpose did not

Paper cheques were discontinued in South Africa to reduce fraud, cost, and processing risk. The discontinuation affected the instrument (the paper) rather than the account. The everyday bank account continued with the same core functions, now supported entirely by digital rails.

How a current account works in 2025

Think of your current account as the command centre for your personal finances. The exact feature set varies by bank and by pricing package, but most current accounts now include:

• Card payments: chip-and-pin, contactless tap-to-pay, and secure online card payments.
• Electronic transfers and payments: standard EFT, Real-time Clearing for urgent interbank transfers, and PayShap for low-value instant payments.
• Debit orders and stop orders: for bills, instalments, and savings automations.
• Cash access: ATM withdrawals at your bank and other banks, retailer till-point cash options, and cardless cash at supported devices.
• Virtual cards and digital wallets: safer once-off card numbers for online spending and in-app tap-to-pay.
• In-app controls: set daily limits, enable or disable international usage, freeze or unfreeze a card, request stamped statements, and manage beneficiaries.
• Notifications and security: instant alerts for transactions, biometric login, and device management.

The payment rails you will actually use

1. EFT (Electronic Funds Transfer)
   The standard, cost-effective way to move money across banks. EFT credits typically reflect within up to two business days, depending on clearing cycles. It is ideal for non-urgent payments, suppliers, and scheduled transfers.
2. Real-time Clearing (RTC)
   Immediate interbank payments that typically reflect within a minute. Banks price RTC higher than standard EFT because the payment clears and settles instantly. Use it when timing is critical, such as securing a booking or paying a time-sensitive invoice.
3. PayShap (Rapid Payments Programme)
   A low-value instant payment rail designed for everyday person-to-person and small-business payments. You can pay to an account number or a simple alias such as a mobile number. It is fast, widely available, and increasingly affordable, making it useful for reimbursements, side-hustle payments, market stalls, or tradespeople.

Tip: Use EFT for larger, non-urgent payments to keep costs down; use RTC or PayShap when you need funds to reflect immediately.

Everyday scenarios (how people actually use these accounts)

• Get paid with certainty: Set up notifications for salary deposits, and use the app to pull a stamped statement when you need proof of income.
• Automate your bills: Authorise debit orders for fixed monthly obligations such as insurance, fibre, and gym. Where you want tighter control, use a stop order that you initiate each month.
• Pay anyone, anywhere:
  • Use EFT for routine payments and suppliers.
  • Use RTC for urgent interbank transfers.
  • Use PayShap for quick low-value instant payments, especially when paying people rather than companies.
• Spend locally and abroad: Tap or swipe in South Africa; enable international card features in the app before travel.
• Withdraw cash strategically: Withdraw at your own bank’s ATMs for the best pricing, plan fewer, larger withdrawals rather than many small ones, and use retailer till-points if that suits your routine.
• Go cardless when needed: Generate one-time withdrawal codes for yourself or a trusted person, subject to limits.
• Keep admin simple: Download bank-stamped statements in minutes for rental applications, visas, credit checks, or tax administration.

Current account vs savings account (and other options)

• Current (transactional) account
  Optimised for spending and payments. It offers the widest payment options and cash access but typically pays little or no interest on positive balances.
• Savings account / notice deposit
  Optimised for interest and discipline. Access may be limited by notice periods or same-bank transfers only. This separation helps prevent impulse spending.
• Hybrid bundles and savings “pockets”
  Many banks link a current account to a savings pocket so you can move money aside and earn interest while keeping your everyday balance lean.

A strong personal-finance habit is to separate spending from saving. Use your current account for daily life and your savings or notice account for goals. Automate a transfer to savings the day after payday.

Overdrafts on current accounts

An overdraft is a revolving credit facility attached to your current account. It allows you to dip below zero up to an agreed limit, usually priced at a variable interest rate linked to prime, plus a monthly facility fee. Overdrafts are convenient for genuine short-term cash-flow gaps, but they are still credit and therefore subject to affordability assessment and National Credit Act rules. Use them as a buffer, not as long-term spending money, and plan to keep your balance positive most of the time.

Typical fees and how to think about them

Fees differ by bank and by package. Most providers offer either bundles (a fixed monthly fee that includes a defined set of transactions) or pay-as-you-use pricing (a lower monthly fee, separate charges per transaction). The main categories are:

• Monthly account fee: the cost of the bundle or the base service on pay-as-you-use.
• Card swipes (in-store and online): often included or zero-rated on bundles; confirm your plan’s rules.
• ATM withdrawals: different pricing for your bank’s ATMs, other banks’ ATMs, and cash at tills or branches.
• Electronic payments: standard EFTs, scheduled EFTs, and RTC payments for instant interbank clearing.
• PayShap: low-value instant payments; fees vary by bank and can differ from RTC.
• International use: card purchases and ATM withdrawals outside South Africa, plus currency conversion costs.
• Ancillary fees: proof-of-payment notifications, balance enquiries, card replacement, stop-payment instructions, and special statements.

A simple fee comparison table (no bank-specific numbers)

Fee category	What it covers	Practical guidance
Monthly account fee	Bundle or base service	Choose a bundle if you transact often; light users may save on pay-as-you-use.
Card swipes	In-store and online purchases	Many bundles price swipes at R0; verify your package.
ATM withdrawals	Cash at your bank, other banks, or retailers	Plan withdrawals to reduce “off-us” ATM costs and avoid expensive branch cash.
EFT payments	Standard and scheduled interbank transfers	Use for non-urgent payments to keep costs down.
Real-time Clearing	Immediate interbank transfers	Use only when timing matters; it usually costs more than EFT.
PayShap	Low-value instant payments	Ideal for quick person-to-person payments and small business transactions.
International usage	Purchases and ATM withdrawals abroad	Toggle international in-app; budget for conversion and cross-border fees.
Ancillary items	PoP emails/SMS, card replacement, stop-payments	Small fees that add up; review your statement and adjust habits.

How to keep fees low: Use your bank’s ATMs, lean on EFT for routine payments, batch your cash withdrawals, and avoid unnecessary proof-of-payment messages. Review your monthly fee breakdown in the app and tweak your behaviour accordingly.

Student, youth, and special-purpose current accounts

Banks package accounts by life stage and service level:

• Youth and student accounts: reduced monthly fees, educational features, low limits, and budgeting tools.
• Entry-level accounts: transparent, low-cost pricing for basic needs.
• Middle and premium tiers: higher limits, bundled value-adds, travel features, and rewards.
• Private banking: relationship management and preferential pricing for high-income clients.
• Shariah-compliant (Islamic) current accounts: structured to comply with Islamic principles while providing everyday functionality.
• Non-resident and temporary resident accounts: for foreigners who need to bank while living, studying, or working in South Africa, subject to additional documentation.

As your income and needs evolve, you can usually migrate to a different tier without changing banks.

Opening a current account: documents and compliance

South African banks must comply with the Financial Intelligence Centre Act (FICA) and a risk-based approach to customer due diligence. In practice, you will usually provide:

• A valid South African identity document or a valid passport for foreign nationals.
• Proof of residential address, often a recent municipal bill or bank statement. Where a customer lacks conventional proof, banks may accept alternatives consistent with their risk-based policy.
• Additional documents if you are a foreign national, a student, or opening a business account.

Banks verify identity and address information, keep records, and may request further details about income or the source of funds based on the risk profile.

Step-by-step: opening your account

1. Compare pricing and features: decide between bundle and pay-as-you-use based on your monthly behaviour.
2. Gather documents: identity document or passport, proof of address, and any additional documentation required for your profile.
3. Apply digitally or in-branch: many banks support full digital onboarding; others may request an in-person check depending on risk.
4. Activate security: set strong pins, enable biometrics, and switch on transaction alerts.
5. Set up your life: move your salary mandate, add beneficiaries, recreate debit orders, and configure savings pockets and spending limits.

Personal vs business use

A personal current account is not a substitute for a business current account once you begin trading regularly. Business accounts provide features such as multiple user permissions, merchant services, accounting integrations, and specialised pricing. They also require entity documents and additional FICA checks. Keeping personal and business finances separate simplifies tax, compliance, and financial management.

Managing your current account well

1. Make fees visible
   Enable fee notifications where available and read your monthly fee breakdown. Small line items such as off-us ATM fees and proof-of-payment messages add up quickly.
2. Automate your cash flow
   Set a stop order to move money into savings the day after payday. Automation helps you pay yourself first and smooths month-end pressure.
3. Use the right rail for the job
   EFT for routine, non-urgent payments; RTC when speed is essential; PayShap for low-value instant transfers. Right-sizing the rail saves time and money.
4. Harden your security posture
   Use biometric login, never share OTPs or card details, and freeze a lost card immediately in the app. Treat unexpected calls, emails, and SMS messages with suspicion, even if they appear to be from your bank.
5. Travel smart
   Inform your bank before international trips, toggle international card usage in the app, and expect foreign-currency conversion and cross-border fees.
6. Treat overdraft as a buffer, not a budget
   If you take an overdraft limit, use it sparingly and plan to return to positive balances quickly to limit interest and fees.
7. Reassess annually
   Needs change. Students become professionals; professionals start businesses. Review whether your current package still fits your transaction pattern and upgrade or downgrade accordingly.

Frequently asked questions

Are cheque books still available?
No. The paper cheque instrument has been discontinued. The term “cheque account” lives on informally, but the product is a fully electronic current or transactional account.

Which is cheaper: EFT, RTC, or PayShap?
Standard EFT is generally the most cost-effective. RTC and PayShap provide instant reflection and are typically priced higher by banks, although PayShap aims to keep low-value instant payments accessible. Always check your bank’s current pricing.

Do current accounts pay interest?
Some do, but the rate is usually minimal compared with savings or notice accounts. Keep only working capital in your current account and sweep surpluses into interest-earning products.

Can I use a virtual card and mobile wallet?
Yes. Most banks offer virtual cards for online purchases and support in-app tap-to-pay. You can also set merchant- or channel-specific limits for additional safety.

What proof of address works for FICA?
Banks publish lists of acceptable documents and apply a risk-based approach. If you lack conventional proof, ask your bank about alternatives allowed under its policy.

I am a foreign national. Can I open an account?
Yes, subject to additional documentation such as a passport, visa status, and proof of address. Some banks also offer non-resident and temporary resident accounts.

How to choose the right current account (a simple decision framework)

1. Map your monthly behaviour
   Estimate how many card purchases, cash withdrawals, EFTs, and instant payments you complete in a typical month. If you transact frequently, a bundle may make sense. If you are a light user, pay-as-you-use can be cheaper.
2. Check rails and limits
   Confirm that your account supports the mix you need: adequate RTC limits for urgent supplier payments, PayShap for frequent low-value transfers, and sufficient daily card limits for travel or big-ticket items.
3. Assess the app experience
   Responsive, reliable apps save time and reduce risk. Look for instant alerts, easy statement downloads with bank stamps, and swift card controls.
4. Consider ecosystem value
   Rewards, travel benefits, budget tools, and linked savings pockets can tip the balance when core fees are similar across providers.
5. Plan for growth
   Choose a bank that allows smooth upgrades between tiers, offers decent service channels, and supports additional products you may need later (credit, savings, foreign exchange).

The bottom line

In 2025, a current (cheque) account remains the engine room of your personal finances. It provides a full suite of digital payment options, broad access to cash, and strong mobile features to control limits, authorise debit orders, and generate stamped statements on demand. The smartest approach is to choose a pricing package that matches your behaviour, reserve overdrafts for genuine buffer use, and pair your current account with a proper savings product so that every rand has a job. With a little setup and periodic review, day-to-day banking can be simple, predictable, and secure.

---

Sources

• South African Reserve Bank — Discontinuation of cheques in the National Payment System (2020): https://www.resbank.co.za/en/home/what-we-do/Payment–clearing–settlement/cheques
• South African Reserve Bank — PayShap launch materials and payment system updates (2023–2025): https://www.resbank.co.za
• BankservAfrica — Rapid Payments Programme and PayShap overview: https://www.bankservafrica.com
• FSCA MyMoney — Entry-Level Banking Account Fees Comparison (latest edition): https://www.fscamymoney.co.za
• Financial Intelligence Centre — Guidance Note 3A: Customer due diligence and risk-based approach: https://www.fic.gov.za
• Selected bank pricing guides and product disclosures (2025 editions), publicly available from each bank’s website (Standard Bank, Absa, FNB, Nedbank, Capitec, Investec).