With the Jali inquiry into banking fees under way and continued pressure on banks by consumer groups and customers, another bank has announced a cut in its banking fees.
Nedbank recently announced a 13% reduction in fees and recently launched its bundled pricing option, which saves customers nearly R100 a month based on a typical consumer.
When the Mail & Guardian surveyed the banking fees four months ago, Nedbank was by far the most expensive and did not offer a bundled account, which saves customers money by charging a set fee on a range of banking transactions.
However, it seems that the bank has its eye back on the ball and that it has benefited in being the last to the party by being able to compare what its competitors are offering and beating them where possible. According to Bryan Mclachlan, head of transaction and investment products at Nedbank, the bank is now the most competitive of the big four based on the average profile of a traditional cheque account customer. Based on Nedbank’s figures, it narrowly beat FNB, followed by Standard Bank, with Absa now the most expensive retail bank. These figures tie in with the findings of the M&G when the three banks re-priced earlier this year. It is, however, interesting to note that non- traditional bank Pick ‘n Pay Go Banking, backed by Nedbank, is half the price of the big four, which shows the benefits of banking with institutions that do not have the legacy of branches and a massive staff complement.
Nedbank’s bundled option, the Everyday account, is similar to its offspring Old Mutual Bank’s Everyday account. Apart from having the same name, they both offer a flat banking fee of R85 a month for a package of transactions
In addition, if you have a home loan with the banks, the monthly banking fee drops to R55. The fee includes a range of transactions such as internet banking and ATM withdrawals and waives annual card fees.
However, unlike Old Mutual’s Everyday account where all cheque payments are included in the monthly fee, Nedbank will still charge for cheque transactions, although the price per cheque is halved on the Everyday account.