Registered users can save articles to their personal articles list. Login here or sign up here

Nedbank increases bundle account fees by 6%

Bank nearly triples in-branch cash deposit fees to force customers to depositor ATMs.

After holding its mid-market “everyday” bundled account pricing steady in 2017, Nedbank has announced an increase of 6% on these three accounts from January 1 2018 (detailed pricing guides are available on its website here). The mass market Ke Yona Bundle increases from R50 to R53 a month, the Savvy Plus account from R100 to R106 and the Savvy Bundle (with a Platinum credit card) from R180 to R190 per month. 

Aside from 2014, when it held transactional fees steady in 2014 “to assist in slowing client attrition”, fees have increased – on average – by at least 4% a year. It passed an average 4.3% increase in 2013, increased fees by an average of 5.6% in 2015, by 4.3% in 2016 and by an average of 4.6% in January 2017. The bank’s retail non-interest revenue increased by 5.7% in the first six months of this year. Revenue from transactional accounts and cards was up 6.2% despite main-banked customers dipping by 0.3% (overall retail customers were up 2.8%).

Like other banks, it has increased most “out of bundle” charges. Card replacement fees on its transactional accounts and credit card products are now R130 across the board, a big jump on the lower-end (Ke Yona and pay-as-you-use) where this currently costs R100. In fact, two years ago, the card replacement fees on those accounts used to be R60 and R40, meaning fees have more than doubled on Ke Yona and tripled on pay-as-you-use!

Nedbank has also passed sizeable increases to the costs of in-branch transactions, particularly those involving cash. To help push (force?) customers to use its auto-depositor ATMs, of which it now has nearly 1 000, it will not charge for cash deposits on these until after a monthly threshold (R7 000 on the Savvy Bundle, R5 000 on Savvy Plus and R3 000 on the Ke Yona Bundle).

In-branch cash deposits now cost R30 plus R1.50 for every R100 (or part thereof) deposited on all accounts, from R11 plus R1.40/R100, an increase on the base fee of 173%! This means that a deposit of R2 000, for example, will cost R60 in 2018 (from R39 currently). Cash deposits at a Pick n Pay or Boxer till point, by comparison, cost only R5 plus R1.50 per R100.

 

Savvy Bundle

Savvy Plus

 

2017

2017

2017

2017

Monthly fee

R190

R180

R106

R100

Debit order internal

Free

Free

Free

Free

Debit order external

Electronic payment (internet/app)

Free

Free

Free

Free

POS swipe

Free

Free

Free

Free

Withdrawal Nedbank ATM

Free

Free

4 free per month**

4 free per month**

Withdrawal at other ATM

R12.50 + R1.50 per R100

R11.50 + R1.40 per R100

R11.50 + R1.40 per R100

R11.50 + R1.40 per R100

Greenbacks linkage fee

Free

Free

R20

R19

Overdraft facility

Free

Free

R40

R30

 

Cheque card service fee

Free

Free

Free

Free

Cash deposit at Nedbank ATM/branch

R30 + R1.50 per R100

R11 + R1.40 per R100

R30 + R1.40 per R100

R11 + R1.40 per R100

Cash deposit at auto-depositor

First R7000 free, then R1 per R100

R5.50 + 70c per R100

First R5000 free, then R1 per R100

R5.50 + 70c per R100

Fuel purchase

R4

R4

Free

R4

Card replacement fee

R130

R130

R130

R130

Declined at Nedbank ATM

Free

R3.50

Free

R3.50

Declined at other ATM

R8.50

R5

R8.50

R5

Declined at POS

R8.50

R7.50

R8.50

R7.50

Declined debit order

R60 for first 4/year (then R150)

R60 for first 4/year (then R150)

R60 for first 4/year (then R150)

R60 for first 4/year (then R150)

** Then R5 + R1.50 per R100 (from R4.50 + R1.40 per R100)

 

Ke Yona Bundle

Pay-as-you-use

 

2018

2017

2018

2017

Monthly fee

R53

R50

R5.50

R5

 

* First ten transactions per month of those marked with asterisk are free

 

 

Debit order internal

Free

R5

Free

Free

Debit order external*

R11

R9

R5

R5

Electronic payment (internet/app)*

R8

R8

R2

R3

POS swipe

Free

Free

Free

Free

Withdrawal Nedbank ATM*

R4 + R1.50 per R100

R4 + R1.40 per R100

R6.50

R6.50

Withdrawal at other ATM

R12.50 + R1.50 per R100

R11.50 + R1.40 per R100

R9.50 + R1.50 per R100

R8 + 70c per R100

Greenbacks linkage fee

N/A

Overdraft facility

 

Cheque card service fee

Free

Free

R169 per year

R169 per year

Cash deposit at Nedbank ATM/branch*

R30 + R1.50 per R100

R11 + R1.40 per R100

R16 + R1.50 per R100

R4 + R1.40 per R100

Cash deposit at auto-depositor*

First R3000 free, then R1 per R100

R5.50 + 70c per R100

R1 per R100

R2 + 70c per R100

Fuel purchase

Free

Free

Free

Free

Card replacement fee

R130

R100

R130

R100

Declined at Nedbank ATM

Free

R3.50

Free

R3.50

Declined at other ATM

R8.50

R5

R8.50

R5

Declined at POS

R8.50

R7.50

R8.50

R7.50

Declined debit order

R28 (capped at 4 per month)

R28 (capped at 4 per month)

R10 (capped at 4 per month)

R10 (capped at 4 per month)

Minimum monthly credit card fees have been increased in the mid-tiers (classic and gold), also by around 6%. On the lower-end, the monthly fee for the Ke Yona credit card is up over 8%, while pricing on the higher-end, its Platinum card, is unchanged. The bank notes that it could charge as much as R68.40 a month (the maximum allowed under the National Credit Act), and that this “depends on your risk profile”. It has increased the price of its monthly credit facility fee by 7%, and its Greenbucks (loyalty) linkage fee by 5%. The former is mandatory and was “unbundled” from a flat fee last year.

As an example, a Gold credit card customer (with Greenbucks linked) will pay at least R65.90 a month, from R62 currently, a 6.3% increase.

Credit Card Fees

Platinum

Gold

Classic

Ke Yona

2018

2017

2018

2017

2018

2017

2018

2017

Monthly fee*

R55.40

R55.40

R32

R30

R25.40

R24

R60

R55.40

Credit facility fee

R13.90

R13

R13.90

R13

R13.90

R13

R13.90

R13

Greenbucks linkage fee

R20

R19

R20

R19

R20

R19

N/A

N/A

Additional card

Free

Free

Free

Free

R25.40

R24

N/A

N/A

Initiation fee

R188

R188

R188

R188

R188

R188

N/A

N/A

* This is a minimum amount and could be as much as R68.40

  • An analysis of Absa’s pricing changes was published on Moneyweb on Monday (read: Absa hikes fees)
  • An analysis of Standard Bank’s pricing changes will follow this week. FNB price changes are effective July 1 each year. 

Hilton Tarrant works at immedia. He can still be contacted at hilton@moneyweb.co.za.

AUTHOR PROFILE

COMMENTS   5

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

Banks can get away with murder I’m telling you. Imagine Aspen or Ascendis hiking the price of ARVs or cancer medications by 56%, Imagine the price of bread or petrol increasing by 50%, the trade unions will be up in arms and CEOs will be forced to appear before parliament. But banks will get away with these increases. Yesterday it was ABSA, today it’s Nedbank. I won’t be surprised if tomorrow it’s Absa again. I’m ready for the hereafter, it has to be better than this.

This is why interventions such as bitcoin, stokvel, Uber, Airbnb, etc. are so successful. It takes the power away from big greedy institutions and hand it back to you and me. It basically allows us to have a true share of the economy.

As Nedbank feels the need to increase its costs substantially isn’t it about time that there was a commensurate improvement in their service delivery – in my neighbourhood there are 3 Nedbank off site ATM’s – 1 had the card throat jammed; the 2nd one told you to use another ATM (where) and the 3rd had been removed from sundowner Motors totally even though Nedbank had advertised that it was moving out of the shop
Poor poor service – no wonder Capitec has passed them in so many respects

As I mentioned on the ABSA fee increase post, SA banks are ripping everyone off, in Australia I opened a bank account from here over the phone, took 20min of which 15min was probably spent chatting with the consultant about our move to Aus, the other 5 minutes was spent providing the details they need.

I will pay zero bank fees for the first 12 months and thereafter if a deposit of $2000 is made into the account the monthly the fee is waived.. which should be easy to reach.

4.8% interest on home loans, between 0-2% interest on vehicle finance, yes I need to subtract inflation from our rates we get in SA but it’s still not great afterwards.

yes these charges are outrageous, but then so are Eskom’s,Cape Town property rates,data prices,food prices,petrol prices, house prices, et al.One feather in Nedbank’s cap, I will admit, is that their security is at a higher level than other banks in SA.That’s a big deal.

Load All 5 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2