Opening a bank account in South Africa as an Australian - What you need to know

Boasting the longest wine route in the world – Route 62 – a plethora of UNESCO sights and not to forget the truly wild wildlife, South Africa is definitely a destination rich with history, culture and natural beauty. For Australians or Australia residents moving to South Africa, it’s sure to provide you with endless sights to see and things to do.

One thing foreigners will have to get used to though, is spending in a new currency, the South African Rand (ZAR). This article will act as a guide on how to manage your ZAR including which bank accounts are available to Australians to open.

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What are the biggest Banks in South Africa?

Much like in Australia, South Africa has its own selection of top banks that can be chosen to manage your money. These banks include:

• Absa Bank
• First National Bank
• NedBank
• Standard Bank

We’ll briefly explore what sort of accounts you can expect from these banks in South Africa.

Absa Bank

Absa bank, a subsidiary of Absa Group Limited is one of the largest banks in South Africa offering the full spectrum of financial services to its customers. Services include personal, business, or corporate banking and wealth management.¹

Absa accounts are designed to cater to a full range of customers and their unique circumstances. You can choose to start with a basic low fee transaction account, or decide to open one of the premium accounts that tack on several lifestyle benefits. ²

First National Bank (FNB)

First National Bank or FNB for short, is a retail and commercial banking subsidiary of the largest financial institution in Africa, FirstRand Limited. FNB was originally formed back in 1838 and has since expanded its roots to reach the broader African continent.³

There are several ways to bank with FNB. There are accounts catered for people from all walks of life that may require personal transaction accounts, family accounts, or business banking. Accounts are offered in tiers based on income and vary with features such as low fees, reward benefits, credit facility or dedicated private banking managers.³

NedBank

NedBank is a part of the NedBank Group portfolio that has subsidiaries and partnerships across other countries in southern and western Africa. NedBank has over 7.2 million customers which use their wholesale, retail and insurance services. However its main customer base is in South Africa.⁴

Like many of the larger banks in South Africa, at NedBank you can choose to open an account that comes with basic features or opt in to a more premium account with top-tier lifestyle benefits.⁵

Standard Bank

Standard Bank, part of the larger Standard Bank Group, is one of Africa’s oldest and largest banks with a local presence in 20 Sub-Saharan African countries. Over 15 million people are currently using their financial services that range from general banking, investment management and insurance products.⁶

For new customers, Standard Bank caters transaction and savings accounts to the general consumer, to professionals or those who are over 55. In particular, if you just need a basic transaction account, then the MyMo account is the basic option available. For those who want more, including added lifestyle benefits, a premium or private banking option can be applied for.⁷

Can an Australian or resident of Australia open an account in South Africa?

For an Australian that has no plans to move to South Africa, then it is not possible to open an account.

For those that are making the big move, then there are a few ways a foreign national can open an account in South Africa. Account eligibility will come down to your citizenship or intention to emigrate.

What is the procedure to open an account in South Africa

Here are the typical procedures for how to open an account in South Africa.

Opening a South African Bank Accounts as an Australian Citizen

An Australian citizen can open an account in South Africa, but only if they are able to prove their temporary residency status when applying for an account. You can start the account opening process before or after you arrive in South Africa.

If you haven’t yet arrived in South Africa, you’ll need to⁸:

• Find a bank that offers an account for temporary residents
• Fill out an online application
• Wait for an email with your next steps
• Visit a branch when you arrive in South Africa

If you want to start the process prior to arriving in South Africa, it’s important to time your application within 90 days of your arrival.

If you have arrived in South Africa, you’ll need to:

• Apply online at your chosen bank
• Choose the account you would like to open
• Have your temporary residency permit handy

You can also visit a local branch with your documents if the online application process isn’t for you.⁸

Opening an account as an International Student

Some banks offer accounts dedicated to international students. These accounts can only be applied for after you arrive in South Africa. International student accounts can have lower fees, and partnered discounts with some major retailers.

What documents do you need to open a South Africa bank account?

The list of documents vary depending on which type of account you want to open. To best prepare, here are some of the documents to have handy to support your application as an Australian citizen.⁸

• A valid permit or visa (Work, Study, Retired, Spousal)
• Proof of residency
• Proof of income
• Australian Passport

Account types and eligibility are based on income amount.² This means if you do want an account higher than the standard transaction option on offer, your proof of income will become more necessary to provide.

Common bank fees in South Africa

There is a range of fees to look out for across bank accounts in South Africa, especially if you are looking for added features or rewards. It’s always good to start with the basics, so we’ll compare two standard everyday accounts from two of the major banks listed above.

You can see the current mid-market AUD-ZAR exchange rate here on Wise.

Fee type*	Standard Bank MyMO account⁹	NedBank Pay-as-you-go account¹⁰
Monthly maintenance	6.95 ZAR	5 ZAR
ATM withdrawal fee	**Domestic ** 9 per 1000 ZAR withdrawn up to 2000 ZAR per month 2.40 per 100 ZAR thereafter International 3 ZAR per 100 ZAR + 2.75% fee	NedBank ATM 11 ZAR up to 1000 ZAR Other ATM 12 ZAR + 2.95 ZAR per 100 ZAR International 65 ZAR + 2.65 ZAR per 100 ZAR
Transaction fees	Free inter-bank transfers 10 ZAR for immediate payments under 2000 ZAR and 50 ZAR for payments over	Free interbank transfers 2.20 ZAR for payments to another bank 10 ZAR for instant payment up to 3000 ZAR and 49 ZAR over
International payments	2.75% of purchase value	65 ZAR + 2% fee

*valid as of 28 May 2024

Options on special accounts for foreigners/non-residents

For dual citizens, those who hold Australian and South Africa citizenship or those that hold South African permanent residency can apply for a non-resident account. These accounts are available at most major banks and can be open from anywhere in the world.

The main eligibility requirement for a non-resident account is that you must be over the age of 18 and have the required documents ready that prove your non-resident status. You’ll also need a different subset of documents compared to those required by a foreign national. These include¹¹:

• A certified copy of your passport, which is stamped by the client's overseas bank.
• Three months worth of bank statements
• Proof of income

You’ll also need to send proof of a minimum deposit amount that you’ll be transferring into the account. Be prepared that documents may need to be notarised and can be emailed, or sent by courier to your chosen bank in South Africa or both in some cases.¹¹

The Wise Account and Debit Card

Opening a bank account overseas can be a bit of a process that’s made more difficult if you aren’t considered a resident yet.

The Wise Account from Wise — while not a bank account — enables you to store 40 international currencies and get local account details for a number of different countries, including AUD, CAD, GBP, NZD, EUR and USD. You can use these to easily transfer your money to Wise or get paid by others. However, do note that features that are offered by traditional bank accounts such as interest, loans and in some countries, deposit protection, will not be available with the Wise account. See how Wise safeguards your money.

You’ll also avoid high international transaction fees and get access to the mid-market rate on all conversions. The best part - you can open and manage your Wise account completely online.

To make everyday spending easier you can order a Wise Debit card for your Wise Account and generate virtual cards as needed. If you have the local currency in your Wise Account the Wise card will use it. If you don’t have local currency converted, it uses smart technology to auto-convert your money at the mid-market rate, for a transparent conversion fee.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

Note! Wise is not a bank and features available with traditional bank accounts, such as interest rates, loans or protection under the Financial Claims Scheme (for deposits up to $250,000AUD), will not be available with the Wise Account. See how Wise safeguards your money.

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Sources:

1. Absa Group info
2. Absa accounts
3. FNB information
4. NedBank info
5. NedBank accounts
6. Standard Bank info
7. Standard Bank products
8. Standard Bank temporary residents
9. Standard bank account fees
10. NedBank fees
11. NedBank non-resident accounts

Sources checked on: 28 May 2024