Discovery Gold and Old Mutual Money Accounts help individuals save for specific objectives, such as education, a home, or a significant purchase. With the rise of digital banking solutions like MiGoal and Global One, consumers have more options to manage their finances conveniently and efficiently. This article compares two prominent goal-based savings accounts: Discovery Gold Account and Old Mutual Money Account.
Account Overview
Discovery Gold Account
The Discovery Gold Account, offered by Discovery Bank, targets individuals with an annual income of less than R350,000. It is designed to provide flexible and affordable everyday banking while rewarding users for healthy financial habits. Key features include the ability to set up third-party debit orders, make EFT payments, accept salary deposits, and access multiple free savings accounts to achieve various goals. Additionally, the account integrates with the Vitality Money program, offering lifestyle and travel rewards based on users’ financial fitness.
Old Mutual Money Account
The Old Mutual Money Account, provided by Old Mutual Transaction Services in association with Bidvest Bank, is tailored for individuals seeking a straightforward and cost-effective banking solution. It combines transactional capabilities with savings features, allowing users to automate monthly transfers to their savings account and manage their finances via a user-friendly mobile app. The account includes access to Old Mutual’s Rewards program, enhancing the overall value proposition.
Key Features and Benefits
Interest Rates
- Discovery Gold Account: Offers up to 2.5% interest on positive balances in everyday accounts and up to 7.25% interest on demand savings accounts. Interest rates are dynamic, linked to the user’s Vitality Money status.
- Old Mutual Money Account: Focuses on facilitating savings through features like “Swipe & Save,” where users can set a percentage of each transaction to be automatically transferred to their savings account. Specific interest rates for savings are not detailed.
Flexibility
- Discovery Gold Account: Highly flexible, allowing for multiple free savings accounts, real-time forex accounts, and comprehensive travel benefits. Users can easily manage and modify their savings goals through the app.
- Old Mutual Money Account: Offers automated savings transfers, the ability to switch cards on/off for security, and various self-service banking channels. The account supports monthly statements and account management via the mobile app.
Additional Features
- Discovery Gold Account: Includes the Vitality Money program, Discovery Miles rewards, Dynamic Interest Rates, and significant travel discounts. Users can earn miles for healthy behaviors and spend them on a wide range of rewards.
- Old Mutual Money Account: Provides access to the Old Mutual Rewards program, Quick Pay feature for easy transfers to other Money Account customers, and the ability to manage finances through a comprehensive mobile app.
Fees and Charges
Below is a comparison of the fees associated with each account:
| Fee Type | Discovery Gold Account | Old Mutual Money Account |
|---|---|---|
| Monthly Account Fee | R135 (incl. Vitality Money premium) | R5.25 |
| Cash Withdrawal at Tillpoint | Unlimited | R2.30 |
| ATM Cash Withdrawal | R5 + 2.25% after 4 free withdrawals | R15.00 per R1,000 |
| Debit Orders | Unlimited | R1.20 |
| EFT Payments | Unlimited | R3.50 |
| Card Purchase (Retail/Online/App) | Free | Free |
| Currency Conversion Fee | 3% | 3% |
| International Purchase Fee | 2% (capped at R100 per transaction) | 2% of transaction value |
| Additional Transaction Accounts | R40 | Free |
Cost-Effectiveness
The Old Mutual Money Account stands out for its low monthly fees and reasonable transaction costs, making it more cost-effective for users with lower transaction volumes. The Discovery Gold Account, though more expensive, offers a bundled fee structure with numerous benefits and rewards that could offset the higher cost for active users.
Digital Experience
Discovery Gold Account
The Discovery Bank app offers a comprehensive digital experience with features such as account management, goal setting, real-time forex transactions, and Vitality Money integration. Users can track their financial health, earn rewards, and access customer support via the app’s Live Assist feature.
Old Mutual Money Account
The Old Mutual Money Account app provides a robust digital platform for managing finances. It includes features like Quick Pay, automated savings transfers, and access to monthly statements. The app is user-friendly and supports various self-service functions, ensuring convenience and control for users.
Customer Service and Support
Discovery Gold Account
Discovery Bank offers in-app support through the Live Assist feature, providing immediate help from a Discovery Banker. Customer reviews generally highlight positive experiences with the bank’s support services, noting the helpfulness and accessibility of the staff.
Old Mutual Money Account
Old Mutual’s customer service is well-regarded, with various channels for support, including the mobile app, internet banking, and in-person assistance at branches. Reviews indicate that response times are reasonable, and the support team is knowledgeable and responsive.
Who is it Best For?
Discovery Gold Account
- Best for: Individuals who prioritize rewards, travel benefits, and a comprehensive banking experience. The account is suitable for users who can leverage the Vitality Money program and Discovery Miles to maximize their benefits.
Old Mutual Money Account
- Best for: Cost-conscious savers who need a straightforward, low-cost banking solution with automated savings features. The account is ideal for users who prefer minimal fees and a user-friendly digital banking experience.
Conclusion
Both the Discovery Gold Account and Old Mutual Money Account offer unique advantages tailored to different financial needs. The Discovery Gold Account provides extensive rewards, travel discounts, and a robust digital platform, making it suitable for active users seeking more than just basic banking services. On the other hand, the Old Mutual Money Account excels in cost-effectiveness and simplicity, making it an excellent choice for savers focused on minimizing fees and maximizing convenience. South African consumers should consider their individual financial goals and usage patterns to choose the account that best meets their needs.