Mid-level banking accounts cater to individuals who require more than basic banking services but do not need the full suite of services offered by high-net-worth banking. These accounts are designed to offer a balance of benefits, convenience, and cost-effectiveness, making them relevant to the financial planning of many South Africans. This review compares two such accounts: the Absa Premium Banking Account and the Nedbank MiGoals Premium Account, to help you determine which is best suited for your needs.
Account Overview
Absa Premium Banking Account
The Absa Premium Banking Account is designed for clients seeking a comprehensive banking package with exclusive benefits. This account targets professionals and individuals with a higher income who want to manage their finances efficiently. Absa aims to provide a robust set of features, including real cash back, extensive transactional freedom, and financial advisory services.
Core Purpose:
- Provide high-value banking services
- Offer extensive rewards and cash back
- Facilitate goal-based saving and financial planning
Nedbank MiGoals Premium Account
Nedbank’s MiGoals Premium Account is crafted for individuals who want premium banking services with a focus on lifestyle benefits and savings. It is aimed at middle-income clients who are looking for value-added services, such as significant discounts and cash back on purchases.
Core Purpose:
- Offer a comprehensive premium banking package
- Provide lifestyle benefits and significant discounts
- Facilitate goal-based saving with additional features like free savings pockets
Key Features and Benefits
Interest Rates
- Absa Premium Banking Account: Interest rates are tiered, providing higher interest for larger balances.
- Nedbank MiGoals Premium Account: Offers a MyPocket savings account with competitive interest rates, also tiered based on the balance.
Flexibility
- Absa: Unlimited free transactions, up to R4,000 free Absa ATM withdrawals per month, and various digital banking features.
- Nedbank: Unlimited free digital transactions, up to R5,000 free ATM withdrawals per month, and additional benefits like free MyPocket account.
Additional Features
- Absa:
- Up to 30% cash back at various retailers
- Discounts on home loan interest rates
- Access to premium banking helpline and Bidvest Premier lounges
- Life cover included
- Nedbank:
- Up to 30% off flights and 2% cash back on Amex card purchases
- Free overdraft and platinum credit card
- Access to premium banking desk 24/7 and 12 free domestic airport lounge visits
Fees and Charges
Monthly Fees
| Feature | Absa Premium Banking | Nedbank MiGoals Premium |
|---|---|---|
| Maintenance Fee | R230 – R305 | R240 |
| Spousal Discount | 50% | 50% |
| ATM Withdrawal (In-Bundle) | R4,000 free | R5,000 free |
| ATM Deposit (In-Bundle) | 5 deposits free | R5,000 free |
| Digital Transactions | Free | Free |
| Cash Back | Up to 30% | Up to 2% |
Transaction Fees
| Transaction Type | Absa Premium Banking | Nedbank MiGoals Premium |
|---|---|---|
| Out-of-Bundle ATM Withdrawals | R10 + R2.50 per R100 | R10 per R1,000 |
| Cash Deposits | R2.50 per R100 | R2 per R100 |
| Branch Withdrawals/Deposits | R100 + R4 per R100 | R100 per R1,000 |
| International Transactions | R65 + R2.65 per R100 (withdrawals) | R65 (withdrawals) |
Digital Experience
Absa Premium Banking
- User Interface: Intuitive and user-friendly with comprehensive features.
- Ease of Use: Simple account opening, goal setting, and progress tracking.
- Support: Extensive customer support through various channels including a dedicated helpline.
Nedbank MiGoals Premium
- User Interface: Modern and sleek with robust functionality.
- Ease of Use: Streamlined processes for account opening, goal setting, and management.
- Support: 24/7 access to the premium banking desk with responsive support.
Customer Service and Support
Absa Premium Banking
- Response Time: Generally quick, with dedicated premium bankers available.
- Accessibility: Multiple channels including phone, email, and in-person support.
- Customer Reviews: Generally positive, highlighting the extensive support and benefits.
Nedbank MiGoals Premium
- Response Time: Swift responses through a dedicated 24/7 premium desk.
- Accessibility: Comprehensive support through various digital and physical channels.
- Customer Reviews: Positive reviews focusing on the value-added benefits and responsive support.
Who is it Best For?
Absa Premium Banking
- Best For: Professionals and individuals seeking comprehensive banking with extensive cash back and premium services.
- Strengths: Robust transactional features, extensive rewards, and dedicated financial advice.
Nedbank MiGoals Premium
- Best For: Middle-income individuals looking for a balanced premium account with lifestyle benefits.
- Strengths: Significant discounts on lifestyle purchases, comprehensive free transaction offerings, and robust support.
Pros and Cons
Absa Premium Banking
Pros:
- Extensive cash back and rewards
- Free transactional features
- Access to premium lounges and services
Cons:
- Higher fees for additional ATM withdrawals
- Slightly higher monthly maintenance fees
Nedbank MiGoals Premium
Pros:
- Competitive interest rates
- Significant lifestyle discounts and cash back
- Free overdraft and credit card facilities
Cons:
- Higher out-of-bundle ATM withdrawal fees
- Limited free branch transactions
Conclusion
Both the Absa Premium Banking Account and the Nedbank MiGoals Premium Account offer substantial benefits tailored to different needs. Absa is ideal for those seeking comprehensive services and extensive cash back, while Nedbank excels in providing lifestyle benefits and a user-friendly digital experience. Your choice should depend on your specific financial goals and lifestyle preferences. For those who value premium services and extensive support, Absa is the better option. If lifestyle discounts and competitive fees are more important, Nedbank is the superior choice.