Old Mutual Money Account Review 2020

Being an Old Mutual Money Account holder is as good as you have a two in one account. The Old Mutual Money Account is a transactional account where you automatically save while spending.

Application

The Old Mutual Money Account is also available for kids from the age of 7 years. This helps teach the kids the habit of saving from an early age.

The Applications are done from any Old Mutual branch near you, with the assistance from their consultants. Remember to carry with you the following:

  • South African Identity Document
  • Proof of residence
  • And provide your phone number

The Old Mutual Money Account is one of the key factors that have influenced competition in the South African banks’ entry-level market.

For a long period of time, the South African banks have been in a less competitive market; hence, their entry-level products have not been appealing as they are today.

As Old Mutual was introducing its Money Account, their unique selling point has been its ability to offer:

  • Easy and encouraging model of saving money (swipe and save)
  • Cost-effective monthly fees and some free transactions

Swipe and Save

Just like the FNB’s ‘save your change’ function, The Old Mutual Money Account allows you to automatically save a percentage of your money spent.

The amount you save should be between 1% and 15% of every card purchase you make.

The amount saved is then transferred into Old Mutual money market unit trusts and start earning interest.

Fair enough, the Old Mutual money market unit trusts are a low risk saving channel. In 2019 the fund managed to deliver a 7.4% interest rate.

Actually, the Old Mutual Money Market Unit Trust has never experienced a negative return over any calendar month since it was first initiated.

There are 2 more options to save apart from the ‘swipe and save’ feature:

  • Focused Save function. The Focused Save function is the more traditional way to save your money.
    You merely set a regular specific monthly amount that is to be transferred from your Transact Account to your Save Account.
  • Anytime time transfer of funds using your Old Mutual app, cellphone banking or internet banking.

Account features

  • There are free card purchases whenever you swipe your debit card
  • You get access to monthly statements on the Mobile App and the Internet Banking at no cost
  • The minimum account balance is R25
  • Using the mobile app, you can also set your preferred account notification to keep track of all your transactions
  • You are able to pro-actively request payment from another account holder using the Mobile App, much like sending a “please call me” message. The recipient of the payment request can simply click on the message and authenticate the transaction, without having to log into the App.
  • There is an option to pay a fellow Money Account user using their cellphone number
  • For security reasons, you are able to de-activate the Money Account card if it is lost or stolen and re-activate once it has been found.
  • The tap to pay feature can be enabled for low-cost transactions, however, you can keep the function disabled to increase the security of your account.
  • As a Money Account customer, you can use the App to purchase and initiate a claim for the Group’s Old Mutual Family Funeral product. The process takes less than two minutes
  • The account can be used to pay for prepared products like Airtime, Electricity, Data or SMS Bundles.

Account fees and charges

  • The Old Mutual Money Account is of the most Transactional Accounts in the market right now. Their monthly account administration fee is currently R4.95 and has really low transaction fees.
  • Cash withdrawal at retailer till points costs R1.20, withdrawals can be made from Shoprite, Checkers, Usave, Pick n Pay, Boxer and PEP stores
  • Cash withdrawal at Old Mutual ATMs costs R7.50 per R1000 withdrawn while other banks’ ATMs is R11.50 per R1000
  •  International bank ATM withdrawal costs R35 plus the 3% currency conversion fee
  • Debit orders cost R2.20
  • SMS notifications cost R0.50 while emails and the mobile app notifications are free
  • Branch statement request is R10 while getting the statement from the Mobile App and internet banking is free
  • To replace your bank card is R70, changing the card pin costs R1 and closing your account will cost you R10

Competitive advantages of the Old Mutual Money Account

  • An easy and encouraging way to save money
  • competitive monthly fees and a lot more free transactions
  • the money saved is invested in a money market unit trust yielding you competitive interest
  • using the Old Mutual’s friendly mobile app can avoid a lot of fees since most transactions are done from the App are free

Competitive disadvantages of Old Mutual Money Account

The Money Account can only send money to a recipient who also has an account, unlike other transactional accounts like FNB mobile app‘s ewallet that allows you to send to any South African phone number.

Conclusion

The number of South Africans who are saving money is still very low hence a product that encourages the saving habit is much needed. The money saved with the Old Mutual Money account is at low risk and returns much higher interests than most savings accounts.

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