First National Bank (FNB) has announced that fees on its most popular accounts will remain unchanged until June 2017. FNB makes fee adjustments mid-year, unlike the other major banks which make changes at the beginning of the year.
“FNB’s strategy of migrating customers to digital and electronic channels continues to pay dividends for the bank’s customers as monthly account fees will remain at previous levels on most accounts and free transactions remain in place,” stated the bank.
The changes
James Fowle, CEO of premium and business core banking, noted: “In the Premium segment, we have maintained monthly fees for our Premier Bundled Account at previous levels and reduced overdraft fees for customers in good standing. We have further increased the value of free ADT deposits for these customers. We have announced a small increase, the first in two years, in our Private Clients monthly fee.”
FNB pricing executive Jo-Ann du Plessis added: “FNB is determined to continue offering the lowest priced entry level full-service account with our Easy Account, especially when customers consider they can conduct all their banking using our free transactions such as free card swipes, cash withdrawals at till-points, free internal debit orders and transfers as well as free EFTs into our accounts.”
The FNB Easy, Gold, Encore Gold and Premier Bundle account fees will not change. In addition, FNB highlighted that the following services will continue to be offered for free:
- Cash at till withdrawals
- inContact (which is one of the ways in which FNB messages you about the status of our account).
- Subscriptions to online banking, the FNB banking app and cell phone banking
- Cell phone banking mini-statements
- FNB ATM, cell phone banking and banking app balance enquiries
FNB added: “The bank is still offering four free FNB ATM withdrawals per month to its Easy Bundle and Gold Unlimited customers, and now offers free FNB ADT cash deposits to these customers, with free deposits limited to R4 000 and R6 000 per month respectively.”
Furthermore, FNB said it will be addressing its ATM fees to reduce the monthly cost to customers who withdraw small amounts. According to the bank’s data, small cash withdrawals are more popular among its Easy account customers, and these fees tend to make up the majority of their banking fees per month.
The prices
“What is new for 2016/17 is the streamlining of our transactional accounts. We now offer two accounts, Easy and Gold, which significantly simplifies our entry and mid-level offerings. The Easy Account offers two pricing options for customers to choose from based on what will best suit their banking transactional behaviour; Pay as You Use for the low transactor and the Easy Bundle (previously the Smart Value Option) for the medium transactor,” explains du Plessis.
According to FNB, with the removal of the Smart Transactional Account, more than 90% of this customer base will experience lower banking fees. “For example the monthly account fee on the Smart Pay as you use option was R12.50 which will now become R4.95 for these customers, which is a 60% reduction in this fee alone.”
The following account fees will remain as is for the next 12 months:
- FNB Easy Account (Pay-As-You use option) R4.95.
- FNB Easy Account (Bundle Option) R49. This includes: ten qualifying electronic transactions per month, including pre-paid airtime purchases as well as free FNB ADT deposits up to R4 000 per month as well as four free FNB ATM cash withdrawals per month
- Gold Account (unlimited qualifying electronic transactions) R100. This now includes unlimited prepaid airtime purchases, four free FNB ATM cash withdrawals, as well as free ADT cash deposits to the value of R6 000 per month.
- FNB Encore Gold Account (for customers over 55) R65.
- Premier Bundle Account R199.
Du Plessis pointed out: “Our Easy Account at R4.95 is critical to a very large number of customers who are seeking access to full-service banking. We are still offering free card purchases, free cash withdrawals at till point free internal debit orders, free transfers and free EFTs into the account. During times when prices are rising and people are under pressure, lower priced accounts with full-transactional functionality become increasingly popular.”
The Easy account will also see the introduction of a cash back rewards programme. This will be paid directly into a linked savings account, which enjoys an interest rate of 5.5% per annum on the first R20 000.
