Bank accounts for effective financial management – FNB Moçambique

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Bank accounts for effective financial management – FNB Moçambique

11:49 CAT | 25 Aug 2023

Photo courtesy: FNB Mozambique

Whether it’s to keep your money safe, maximize your savings or make physical or online payments, having a bank account is essential and understanding how the different types of bank accounts work is important for both private clients and companies. Here are a few words on the subject from Mirena de Oliveira, FNB’s Private Segment Manager.

Starting with basic concepts, a bank account is a deposit product available from accredited financial institutions – banks, and a bank deposit is defined as a contract for the safekeeping of funds (money), in which the bank is the trustee, and the account holders are the beneficial owners.

As for the specifics of bank accounts, in some of them it is necessary to maintain minimum balances, while in others it may not be necessary to maintain any balance at all. Similarly, it is possible to move funds freely in some accounts or suffer a penalty for withdrawing amounts in others.

Regarding opening and operating bank accounts held by minors under the age of 15, this must be done through the account holder’s legal representatives. For underage children between the ages of 15 and 18, bank accounts can be opened and operated by themselves, with the written, signed and duly acknowledged authorisation of their legal representatives or, in certain cases, with the authorisation of the Curator of Minors in the area of residence.

In fact, we cannot stress enough the importance of encouraging the habit of saving and including children in financial management from an early age – starting with their own savings.

Understand the different types of deposit accounts available and how to use them intelligently in order to effectively manage your finances and thus grow your money.

Demand deposit accounts

Current accounts are generally used to carry out routine transactions, to receive funds and pay expenses, including those related to credit facilities.

Since they can be moved at any time, no interest is usually charged.

When opening a current account, the account holder has access to products and services such as debit cards, checks, insurance, access to Internet Banking, the App, among others.

Current accounts can be individual, collective or corporate. At FNB, Junior, Smart, Platinum and Private accounts are available, each with different specificities and associated benefits.

Term deposit accounts

A term account is a deposit account in which the account holder keeps a certain amount of money in their current account in return for interest payments from the bank. Unlike current accounts, term accounts are a great way to save money, since you can’t use the money you have tied up for a period of time agreed with the bank, in exchange for interest payments. Generally, the longer the term of the deposit, the higher the interest rate paid to the depositor.

There are also types of term deposit in which the holder has the option of making top-ups to existing deposits, periodically increasing the term deposit with one-off savings which, instead of remaining available in a current account for no specific purpose, can earn interest if added to a term deposit.

However, if necessary, it is possible to move the funds before the end of the established period, by compensating the Bank on the amount of interest accrued during that period.

At FNB Moçambique, the types of term deposits include the Flexible Savings Account, Junior Savings Account, Trocos Savings Account, Gift Term Deposit and Private Term Deposit in Foreign Currency. These deposits have different purposes, specific periods and grant specific conditions and services to their holders. These solutions are designed to save and monetize the savings of smaller holders, others “round off” and save change on all your card payments (an easy and simple way to save), and others involve the mobilization of medium- to long-term deposits with considerable interest rates.

Currently, with digital banking services, it is also possible to subscribe to term deposits remotely. Simply access Internet Banking and view all your deposits on a single platform.

When defining your savings and investment strategy, both privately and professionally, it’s important to analyse the types of deposit available, the counterparts and interest rates in force, do all the calculations and clarify your doubts with dedicated professionals. In this way, you’re sure to choose solutions that best meet your objectives and make your capital grow safely. One thing is certain: knowing about the types of bank accounts and deposits and seeing your bank as your partner is the first step towards effective and sustainable financial management.

Source: FNB Moçambique / Media Release