Business / Business News

Hilton Tarrant
6 minute read
5 Dec 2016
8:18 am

After 10% jump in two years, Nedbank holds bank fees steady

Hilton Tarrant

But, credit card charges are ‘unbundled’ and increase significantly….

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
2014 R169 N/A*
2015 R169 0%
2016 R180 17%
2017 R180 0%

* 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
2017 2016 2017 2016
Monthly fee R180 R180 R100 R100
Debit order internal Free Free Free Free
Debit order external
POS swipe Free Free Free Free
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
Overdraft facility Free Free 30 25
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
Fuel purchase R4 Free R4 Free
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
2017 2016 2017 2016
Monthly fee R50 R50 R5 R5
Debit order internal R5 R5 Free Free
Debit order external R9 R9 R5 R5
POS swipe Free Free Free Free
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
Overdraft facility
*** 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
Fuel purchase Free Free Free Free
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
2017 2016
Monthly fee 299 284
Debit order internal Free Free
Debit order external R9 R9
POS swipe Free Free
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
Fuel purchase Free Free
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
2017 2016 2017 2016 2017 2016 2017 2016
Monthly fee**** R55.40 R58 R30 R30 R24 R24 R55.40 R57
Credit facility fee R13 0 R13 0 R13 0 R13 0
Greenbucks linkage fee R19 R18 R19 R18 R19 R18 N/A N/A
Additional card Free Free Free Free R24 R24 N/A N/A
Initiation fee R188 R165 R188 R165 R188 R165 N/A R150

**** 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 hilton@moneyweb.co.za.

** 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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