Discovery Bank unveils more details of what it will offer

Discovery Bank Picture: Discovery
Discovery Bank Picture: Discovery

Discovery Bank on Monday unveiled more details to the public about what it will offer including what its fee structures will be like and would sort of bank accounts it will provide.

Discovery chief executive Adrian Gore said that the bank would have three bank accounts based on what account holders earn.

There will be a low- to middle-income account for people earning R350 000 a year and this account will cost R185 a month.

There will be a middle-income to high-income account, for those earning R350 000 to R850 0000 a year, which will cost R213 a month, while the high income bank account, for people earning more than R850 000 a year, will cost R440 a month.

Gore said that although Discovery Bank would have competitive fees across its various products, it wouldn’t necessarily aim to have the lowest possible fees.

Gore said that Discovery Bank had conducted “extensive research” on banking fees in coming up with its fees structure. The research was conducted across 12 000 clients.

Gore said that South African banks largely competed in three major areas: fees, rewards and interest rates. Discovery Bank would look to be competitive across all three of these areas.

Read: Discovery Bank set to challenge Capitec on interest

He said that the Discovery Bank will offer transactional accounts as well as transactional accounts that go with a credit card.

Discovery Bank chief executive Barry Hore said that the bank on Monday had launched its app and so far there had been 283 downloads.

On the transactional banking front, Discovery Bank will have three different types of accounts: Discovery 1, Discovery 1 Plus and a Vitality Savings Account.

Gore said that the Discovery 1 bank account would be a “very basic transactional account”, which would offer a credit card and savings account. The Discovery 1 plus account would be “completely bundled basis”, where account holder’s would be charged on a pay as you transaction basis.

Gore said that the Discovery Bank was looking to launch its healthy banking product and its family banking product by June this year.

In a break from what most major banks offer, other than Capitec, Discovery Bank will offer a decent interest rate on bank balances. A rate of about 5% will apply but could be 1.5% higher depending on a client’s Vitality status.

The big thing that Discovery Bank would need to do is migrate its 350 000 credit card clients to the bank, Gore said.

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