Reviews

Absa MegaU Youth Account Review 2022

Published by
Lethabo Ntsoane

The Absa MegaU Youth Account is a savings account established specifically for young people under the age of 19. If you are under the age of 16, you must bring your parent or guardian to open a MegaU account. The account gives young people the opportunity to learn the foundations of saving and banking. This is to encourage parents and guardians to raise money-savvy children.

Account holders can receive rewards and discounts from Absa partner stores by maintaining a minimum balance of R300.00. The requirement that account users maintain a minimum balance of R300.00 in their MegaU account teaches young people the value of saving and the need of having cash flow for rainy days. This money is available for use at any time in the event of an emergency. The MegaU Account provides discounts at certain restaurants as well as free children’s activity lessons. Furthermore, the account is free to maintain, and customers receive free swipes and cash withdrawals from Absa ATMs.

Absa MegaU Youth Account Summary

The Absa MegaU Youth Account is a cheque account available to youth under the age of 19. The account has no monthly maintenance fees and no minimum income requirement to open. Account holders receive monthly value add-ons if they keep a minimum balance of R300.00 each calendar month or conduct at least four banking transactions per month. 100MB of free data each month, an R20.00 meal voucher redeemable at Debonairs, Steers, Nando’s, Wimpy, or Burger King, and a free first lesson for ‘kids activity’ are among the free value add-ons.

Absa MegaU Youth Account Benefits

  1. There is no monthly maintenance fee, meaning that you get every unlimited service for free.
  2. Clients receive up to 30% discounts off on flights with rewards lite.
  3. Free data bundles every month when you maintain a balance of R300.00 in a calendar month or make four banking transactions per month.
  4. Free first lesson for kids activity when you maintain a minimum balance of R300.00 or make four banking transactions per month.
  5. International transactions come at a reasonable fee.
  6. Free cashback at any point of sale in South Africa.
  7. When you deposit your first R500.00 at an Absa ATM or Cash Acceptor you will not be charged a fee.
  8. Clients get free debit card purchases locally.
  9. There are no charges for balance inquiries at an Absa ATM.
  10. The account comes with free eStatements every month.
  11. Internal debit orders are for free.
  12. The account comes with free stop orders.
  13. Clients get food vouchers when they maintain a minimum balance of R300.00 or perform at least four transactions per month.
  14. Card replacements and debit card face to face deliveries are for free.
  15. Free access to all Absa digital platforms.

Absa MegaU Youth Account Fees 2021

Fee description Amount
Monthly service fee R0.00
Absa ATM mini statement feeR4.00
Absa Cat terminal full statementR16.00
Full statement at an Absa branch R32.00
Mailed statementsR32.00
Absa eStatements feeFree
Absa stamped statements onlineR8.00
Stamped statements at an Absa ATMR16.00
Transaction history enquiry online, mobile, telephone (IVR) Free
Transaction history enquiry telephone adviser-assistedR32.00
Achieved statements onlineR8.00 per statement
Bank statements copies: less than 4 months oldR32.00
Bank statements copies: 4 months or older R75.00
Bank cheque feeR200.00
Stop payments at an Absa branch R75.00
Stop payments onlineR32.00
Special clearance feeR200.00
Stop Order feeFree
Debit card replacement fee Free
Debit card face to face delivery feeFree
Notification fee Free
Returned paymentR8.50
Absa online notification Free
Declined transaction feeR8.50
Returned cheque depositR200.00
Debit order dispute online before 40 days lapsedFree
Absa MegaU Youth Account Fees and Rates 2022

Competitive Advantages of the Absa MegaU Youth Account

  • You get free data bundles if you maintain a minimum balance throughout the month.
  • Comes with a food voucher every month if you maintain a minimum balance throughout the month.
  • The first lesson per month is free for a Kidz activity if you maintain a minimum balance throughout the month.
  • International transactions can be performed. However, there are restrictions as per South African Reserve Bank prescription.
  • Free access to all Absa digital platforms.
  • There is no monthly service fee for the MegaU Youth Account.
  • Card purchases are for free.
  • Absa ATM withdrawals are for free.
  • The Absa has its own Absa MegaU App that comes with monthly rewards and ability to transact 24/7.
  • There is no minimum income requirement

Competitive Disadvantages of the Absa MegaU Youth Account

  • No access to the Absa rewards program.
  • Branch fees are high for minors to cope with.
  • Most of the transactions are not for free which can create a high transaction fee.

Requirements of the Account

Requirements for those between the ages of 16 – 19

  1. Need to have a valid South African ID book or Smart card or a valid passport if you are not a South African citizen.
  2. Proof of residence not older than 3 months at the time of application.

Requirements for minors under the age of 16

  1. Must have the original birth certificate or if not a South African citizen, a valid passport.
  2. Parent or guardian’s proof of residence not older than 3 months at the time of application.
  3. Parental consent to open and operate the Absa MegaU Youth Account.
  4. Parent or guardian’s original South African ID book or Smart card.

Conclusion

The Absa MegaU Youth Account is designed to introduce minors and those in their late teens to the banking system. The account comes with its own mobile app designed specifically for youngsters, which includes prizes and banking information. Although transaction fees can be expensive, the account is suitable for kids because it does not impose a monthly service fee. The account is a good place to start banking because it can be upgraded to the Absa Student Silver Account, Absa Gold Graduate Account, and so on.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
Tags: ABSA