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The Best Students Account In Uganda

The first time I opened a personal bank account was in my senior three (2009). It was a Stanbic account, on opening, I was told it was the best student account I could ever imagine. I was convinced and was confident I had earned the "bragging rights". Because seriously, which senior three chap owned a Stanbic account in 2009? Six months later my account was in negatives, in fact, I owed the bank more money than I had deposited on opening. That experience marked my "divorce" with Stanbic bank until recent when it launched its student's saving account.

Now I have to point out that Barclays bank has of recent had the best students account in Uganda and I mean the very best. On opening it in 2010, I was charged only 10,000Ush, given an instant free visa debit card, with no monthly, annual, ATM withdraw and deposit charges. It has of recent introduced a 10,000 Ush fee charged annually and free internet banking which gives you access to your bank statement, account balance and money transfer to Barclays accounts. Given that Barclays bank is global and very reputable, I would still think it offers the best student's account but the coming of this Stanbic student's savings account has twisted the wheels of choice.

So what took me back to the same road that disappointed me five years ago?                           

This account has amazing offers which include a low start up minimum deposit charge of 5,000 Ush, a free ATM debit visa card, free internet banking, no monthly, deposit, and ATM withdraw charges. It  charges 5,000Ush bi-annual visa fee.  It also offers interest on money saved, 4-7% per year.

You only need two passport photos, a photo copy of your ID and admission letter. Its that simple! You think  this is too good? Well this is what other “good” banks like Barclays have been offering for years now. 

So, on hearing this I quickly made my inquiries and analysis which I would love to share with you, things the Stanbic marketing team will not tell you.

1. The bank says you will be charged a bi-annual visa fee of 5,000Ush. This in fact is 10,000Ush per year you are losing on a “savings” account. Of course they will tell you that they will be giving you interest on your account for money saved. Let’s say you have 500,000 Ush in savings for a year. At an interest rate of 7% as they confirmed with me will be 35,000 Ush, minus 10,000 Ush you will remain with 25,000Ush after a year’s savings. You think this is a cool thing? Well, I don’t and the reason is simple, if am saving I should not lose even a penny. So let’s imagine you saved 200,000Ush a year at an interest of 5% (because 7% is for savings of 500,000Ush and above) would be 10,000 Ush minus their 10,000 Ush you will remain with only 0Ush interest or rather no interest at all. Your 200,000 Ush would yield no cash inflow. Now let say you save 100,000Ush for a year, your interest at say 4% would be 4,000 Ush. Minus their visa annual fee of 10,000 Ush would mean you are  6,000Ush less on your hard earned savings. Now you get my point. We all know how banks profit when we save money in their banks; they loan it from 19-21% considering all fees and make various investments from buying shares to purchasing Certified Deposits (CDs). So in a way we are financing them. So how can we finance them without losing?

The answer is by demanding for a non visa debit ATM card. You see, the annual charge is branded a “visa fee”. We both know what a visa service is; It’s a service that enables you use your ATM card to withdraw money from other ATMs that are not of your card’s bank. For example you can use your Stanbic visa debit card to withdraw money from a Barclays ATM, but seriously how many people do this? Personally I don’t remember the last time I made such a transaction. Stanbic bank has over 176 ATMs across the country so surely you will hardly find it hard to get a Stanbic ATM unless of course if you live and study in Budduda. (no offense/ update me if Stanbic has opened a branch there of late). 
My last word: If you request for a non visa card it means you can enjoy you interest without any deductions and will be sure never to go in deficits like I did 5 years ago.

2.      2. Other banks that offer student’s accounts cease to operate when you cease to be a student which is logical. But this Stanbic account runs for 30 years. WTF? Yes! I had the customer care advisor repeat it twice so I could be sure I was hearing well. It turned out I was. So when you implore the principle of compound interest (you can do the maths depending on which figures you want to save ) if you save for ten years or better yet 20-30 years you will be having saving way more than the principle. You will also have  unlimited withdrawals both in amount and frequency.

My last word: For a savings account that is entirely “free” for 30 years, to me is a home run. It’s an undisputed opportunity.

3.      3. The account demands no obligations. I know of banks that demand you to make a transaction at least once in every six months, others  have a minimum balance of 50,000 Ush and many other obligations. This Account only requires you to have a minimum balance of 5,000 Ush which should not be a problem since it’s the opening fee.

My last word. Thumbs up. We are now good to go. Plus you are given a free first cheque book! How cool is that!

The very last word: This is a savings account not an investment account. So you don’t have to deposit all your upkeep so you can have an interest to it. It’s an account you can use to put those extra bucks you don’t use or would love to put away for buying or doing something you love and like taking a safari, financing your graduation party, starting your first business after school or paying for your driving lessons in your senior six vacation if you are still in high school.

I hope you will be helped by my insight and as usual, I love it when you leave a comment. Best wishes.www.facebook.com/onesmus.ken