Nedbank, the country’s fourth-largest full-service retail banking group, has held the monthly subscription pricing of its mid-market ‘bundled’ bank accounts steady for 2017 (Nedbank pricing guide website). The price of its Professional Banking Bundle targeted at ‘professionals’ has increased by 5.3%. Where it has increased fees, like rivals, is on its out-of-bundle (typically non-digital) and pay-as-you-use transactions.
Over the past five years (including 2017), Nedbank’s retail bank has increased fees in all but one (2014). It passed an average 4.3% increase in 2013, held transactional fees steady in 2014 “to assist in slowing client attrition” (it even made selected fee reductions in H2 2014!), increased fees by an average of 5.6% in 2015 and January this year saw another average price increase of 4.3%. That means in the last two years, prices are up over 10%, on average.
It’s all in the detail, though. Across those years, the price of its higher-end Savvy Bundle (i.e. ‘Platinum’ account) was only increased once: by 17% in 2016. That’s roughly in-line with the average increases across the period. The bank – like its competitors – will only increase prices of its bundled products where it has pricing power (and where this is unlikely to result in any significant churn).
|Nedbank Savvy Bundle||Monthly fee||% increase|
* This account was only introduced in 2014 (in 2013, it had a Nedbank Current Account bundle – not strictly comparable)
The fees of most non-digital transactions have been increased. For example, a cash deposit at one of the bank’s (automated) intelligent-depositor ATMs will now cost R5.50 + 70c per R100 (from R5 + 66c per R100 in 2016). Card replacement charges are up across the board (8% on Savvy, 66% on the Ke Yona Bundle and 150% on Pay-as-you-use!).
|Savvy Bundle||Savvy Plus|
|Debit order internal||Free||Free||Free||Free|
|Debit order external|
|Withdrawal Nedbank ATM||Free||Free||4 free per month**||4 free per month**|
|Withdrawal at other ATM||R11.50 + R1.40 per R100||R11 + R1.32 per R100||R11.50 + R1.40 per R100||R11 + R1.32 per R100|
|Greenbacks linkage fee||Free||Free||19||18|
|Cheque card service fee||Free||Free||Free||Free|
|Cash deposit at Nedbank ATM/branch||R11 + R1.40 per R100||R10 + R1.32 per R100||R11 + R1.40 per R100||R10 + R1.32 per R100|
|Cash deposit at auto-depositor||R5.50 + 70c per R100||R5 + 66c per R100||R5.50 + 70c per R100||R5 + 66c per R100|
|Card replacement fee||R130||R120||R130||R120|
|Declined at Nedbank ATM||R3.50||Free||R3.50||Free|
|Declined at other ATM||R5||R5||R5||R5|
|Declined at other bank POS||R7.5||Free||R7.5||Free|
|Declined debit order||R60 for first 4/year (then R150)||R90 for first 3/year (then R130)||R60 for first 4/year (then R150)||R90 for first 3/year (then R130)|
** Then R4.50 + R1.40 per R100 (from R4 + R1.32 per R100)
|Ke Yona Bundle***||Pay-as-you-use|
|Debit order internal||R5||R5||Free||Free|
|Debit order external||R9||R9||R5||R5|
|Withdrawal Nedbank ATM||R4 + R1.40 per R100||R3 + R1.32 per R100||R6.50||R6|
|Withdrawal at other ATM||R11.50 + R1.40 per R100||R11 + R1.32 per R100||R8 + 70c per R100||R7 + 66c per R100|
|Greenbacks linkage fee||N/A|
|*** First eight (above) Nedbank transactions per month free|
|Cheque card service fee||Free||Free||R169 per year||Free|
|Cash deposit at Nedbank ATM/branch||R11 + R1.40 per R100||R10 + R1.32 per R100||R4 + R1.40 per R100||R10|
|Cash deposit at auto-depositor||R5.50 + 70c per R100||R5 + 66c per R100||R2 + 70c per R100||R3|
|Card replacement fee||R100||R60||R100||R40|
|Declined at Nedbank ATM||R3.50||Free||R3.50||Free|
|Declined at other ATM||R5||R5||R5||R3|
|Declined at other bank POS||R7.50||Free||R7.50||R2/R2.50 (own/other)|
|Declined debit order||R28 (capped at 4 per month)||R28 (capped at 4 per month)||R10 (capped at 4 per month)||R90 for first 3 per year (then R130)|
|Professional Banking Bundle|
|Debit order internal||Free||Free|
|Debit order external||R9||R9|
|Withdrawal Nedbank ATM||Free||Free|
|Withdrawal at other ATM||R11.50 + R1.40 per R100||R11 + R1.32 per R100|
|Greenbacks linkage fee||Free||Free|
|Overdraft facility||R30 (R50 over R10000)||R25 (R50 over R10000)|
|Cheque card service fee||Free||Free|
|Cash deposit at Nedbank ATM/branch||First five free per month||First five free per month|
|Cash deposit at auto-depositor||First five free per month||First five free per month|
|Card replacement fee||Free||Free|
|Declined at Nedbank ATM||Free||Free|
|Declined at other ATM||R5||R5|
|Declined at other bank POS||R5||R2.50|
|Declined debit order||R90 for first 3 per year (then R135)||R90 for first 3 per year (then R130)|
Of note are the following new fees: On its two higher-end accounts (Savvy Bundle and Savvy Plus (i.e. ‘Platinum’ and ‘Gold’), Nedbank has introduced a R4 per transaction fuel purchase fee for cheque/debit cards. On the pay-as-you-use entry-level account, there is now an annual R169 “cheque card service fee” (free on other accounts).
|Credit Card Fees||Platinum||Gold||Classic||Ke Yona|
|Credit facility fee||R13||0||R13||0||R13||0||R13||0|
|Greenbucks linkage fee||R19||R18||R19||R18||R19||R18||N/A||N/A|
**** This is a minimum amount and could be as much as R68.40
On its credit cards, fees are now significantly higher following the introduction (like some of its rivals) of a “credit facility fee”. The bank says this “covers the costs associated with providing the up to 55 days’ interest-free credit card facility, routine administration and maintenance of the credit facility, as well as the cost of capital associated with providing the credit facility”. Rival FNB (for one) made this move a few year or two ago. This means that, aside from Savvy Platinum Bundle customers (who don’t pay any monthly or credit facility fees and are excluded from the table above), the price increases on monthly credit card fees are:
- Platinum +18%
- Gold +43%
- Classic +54%
- Ke Yona +20%
These are big increases! In the fine print – not in the brochures – it also points out that the monthly fee is a minimum amount and “may vary depending on your risk profile” to a maximum of R68.40. Initiation fees across Platinum, Gold and Classic are 14% higher.
* Hilton Tarrant works at immedia. He can still be contacted at email@example.com.
** Banks would do better to simplify their pricing websites (we know and accept, reluctantly, that fee structures will remain unnecessarily complex). Good luck with making sense of the at least three separate PDFs you’ll need for a full breakdown of fees (don’t be fooled into thinking that the ‘Everyday Banking Fees Pricing Guide’ is comprehensive!).
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