Be sure to switch for the right reasons

To lure new clients into opening a transaction account, some banks are offering enticing extras – from discounted tablet computers and smartphones to free subscriptions to online, cellphone and telephone banking.

Some of these offers are on condition that your salary is paid into a new cheque account and that you switch your debit orders to the new account.

Excellent as these offers may be, make sure your decision to switch banks is carefully considered and based on sound reasons.

FNB is offering smartphones and tablets at reduced rates to new clients who open a cheque account with the bank. (The offer is also open to existing FNB account holders.) The beauty of FNB’S offer is that you not only stand to score a discount of up to 30 percent on a smartphone or tablet, but you also get to pay it off over 24 months interest-free.

Andrew Bladon, the head of sales at FNB’S Core Banking Solutions division, says the demand for the offer has far exceeded expectations.

Bladon says that since the offer was launched (in October last year), FNB has seen “significant monthon-month growth in new account sales volumes”.

He says the offer is aimed at giving clients access to “aspirational innovative technologies” at less than what the devices cost at retail outlets.

FNB’S offer should also be seen in light of its active promotion of day-to-day banking via electronic banking channels, such as the FNB Banking App, internet and mobile banking, as well as paying for goods with your card rather than cash.

“Our proposition is that a customer will never have to visit our branches unless they choose to,” Bladon says.

Absa offers new clients who open a transactional package the following:

Free subscriptions to online, cellphone and telephone banking; An unlimited number of debit and stop orders; Overdraft facilities; A free garage card with no debit transaction fees; Free SMS notification; and A bundled offering, including the option to switch your home loan to Absa.

Arrie Rautenbach, the head of retail markets at Absa, says some banks throw in freebies such as free travel insurance. He says some of these come with a catch and advises you read the small print before signing up.