About Mzansi Accounts

The Mzansi account, which was launched in October 2004, is an effort by the banks to make financial services more accessible to the nation, in particular, the previously disadvantaged communities especially those who earn low incomes. This is in line with the objectives set out in the Financial Sector Charter.  Formal financial institutions such as banks, insurance companies and others have been recognised as being able to play a key role in extending access, and their commitment to do so is set out in the Financial Sector Charter (the Charter), which was signed in October 2003.  The Charter contains a number of specific access targets, including the commitment to ensure that 80% of LSM 1 to 5 people have effective access to first order retail banking products by 2008.  Hence, the introduction of the Mzansi account.

The Mzansi Account is offered by ABSA, FNB, Nedbank, Old Mutual Bank, Standard Bank and Postbank and is a basic, standardised transaction and savings account, which is, debit card based. It is easy to use easy to use and transactions are limited to balances, statements, deposits, withdrawals, debit card payments, debit and stop orders. It is also important to note that the requirements to open a Mzansi account are not as stringent as those for mainstream banking in terms of FICA. One needs to be 16 years or older and have a green bar-coded ID book. Some institutions may ask for an opening deposit, but this is no more than R20.

Costs on the Mzansi account are to be kept as low as possible. There is no monthly management fee and at least one deposit per month is free. Moreover, for Mzansi account holders ATM's cost the same to use (no Saswitch fees). Once the account holder has reached a balance of approximately R15 000, the account is frozen and they are offered an alternative transaction account at the bank (except for Postbank Mzansi account holders).