Earning a salary gives you financial security and the ability to create wealth through savings and investments.
Having your salary deposited into your bank account by an employer gives you more control over your money as it makes it easy to set up a debit order for a portion to go into a savings account each month and immediately start working for you, among other benefits.
But what if you get your salary in cash?
Neil Thompson, head of product and customer value proposition at African Bank, said not only is this a safety risk but it also denies the employee the ability to easily transact and save and take advantage of the diverse benefits banking offers.
Thompson points out that many sectors of the workforce in South Africa receive their salaries in cash on a daily, weekly or monthly basis, like domestic helpers, for example.
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“Employers may have always paid their domestic helper in cash and feel this arrangement works well for both parties. It is not, however, the best way to pay a salary, for many reasons,” said Thompson.
Top five reasons not to pay your helper in cash
• It is unsafe to carry cash. Street and taxi robberies are a reality and domestics are a target of these criminals.
• If you are paying your domestic helpers in cash, they cannot benefit from a transactional bank account.
• They have no access to online and other banking benefits.
• It is important to have a regular salary reflected on a bank statement if you want to apply for a loan or some other form of credit.
• The less money we physically handle in Covid-19, the better.
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African Bank believes employers have the perfect opportunity to enrich the lives of their domestic staff by encouraging them to set up the right bank account into which their salaries can be paid.
“Not only will it keep them safer from criminals, but it also gives them more control of their money and empowers them to transact, save and help their extended family,” said Thompson.
“Our MyWORLD account came into being from the simple premise that families and communities already share a lot of things to make life easier – transport, homes, stokvel dividends and childcare. So, why not share banking?”
“The MyWORLD bank account is perfect because of its joint account benefits.
Account-holders get rewarded for swiping and can redeem grocery, prepaid electricity or mobile data vouchers or a cash rebate on our website. These are just some essentials that can make life less stressful for your domestic helper.
“They will also be able to help their friends and family as the MyWORLD account offers a Power Pocket and a Savings Pocket. A Pocket user can be anyone the primary account holder designates and multiple people can be Pocket members.
Thompson said a Power Pocket is the first Pocket account in the industry to offer the user full transaction capability. It comes with its account number, debit card and PIN and earns interest per annum on positive balances.
“While your domestic helper is the primary account holder and ultimately decides who they allow to share their account, Pocket users have the full financial freedom to transact as if it is their bank account.
“The bottom line is that banking opens up a whole new world for employees and having an account into which you get a regular salary is a very positive step when it comes to achieving your financial goals,” Thompson concluded.
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