Cape Town - Capitec, which has grown to become the country’s second-largest bank by customer number, announced new fees for 2018.
The updated bank charges, effected on March 1, sees the monthly admin fee increase with 25c to R5.75.
"We believe that everyone should easily understand what they pay, and what they get," said Capitec executive for marketing and communications Francois Viviers.
Capitec said the new pricing was kept simple in order to be as transparent as possible for clients.
"It's about helping our clients to bank better and thereby capitalise on opportunities to save – like transacting online rather than at a branch or paying with a card rather than cash."
Access to banking online and the app remains free with zero-rated data for the app.
The price of payments and transfers between own accounts on cell phone and internet banking will increase from R1.50 to R1.60 per transaction.
Fees for payments in branch increased to R5.30 per transaction.
Debit orders increase by 20c, from R3.50 to R3.70.
The cash withdrawal fee at tills is R1.60.
The flat cash withdrawal fees for any amount from a Capitec branded ATM will now cost R6.50. All other bank ATM withdrawals will be R8.75.
Capitec said more than 9.2 million clients banked with it in 2017, with over 5 million clients paying under R50 in bank costs each month.
It added that many clients earn more in interest than the fees they pay. This is a big factor influencing individuals to switch banks, according to Viviers.
"[O]ur clients earn at least 5.1% interest on positive balances from the first rand in their transaction account, and they get 4 free savings plans which they can fix to earn even higher interest," he explained.
"In tough financial times, people seek value for money. This is why Capitec has seen 185 000 new clients this January alone."
Capitec became the target of the short seller Viceroy recently. The bank is preparing for an investigation by the Financial Services Board, into Viceroy for potential market abuse and breaches of the Financial Markets Act.
Viceroy accused Capitec of exploiting customers’ current accounts by ensuring their loan repayments are deducted before other debts.
Although the report took a toll on the bank's shares and created uncertainty among clients, chief executive officer Gerrie Fourie said last month that the bank isn’t planning any legal action against Viceroy.
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