Business 5.12.2017 09:39 am

Nedbank increases bundle account fees by 6%

Nedbank's fees have increased on average by at least 4% a year, apart from 2014 when fees went unchanged. Picture: Moneyweb

Nedbank's fees have increased on average by at least 4% a year, apart from 2014 when fees went unchanged. Picture: Moneyweb

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.

Brought to you by Moneyweb

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