- Prices for FNB’s Pay-as-you-use account will drop by 80c in July.
- Business Insider compared the FNB account with other entry-level bank accounts in South Africa.
- While FNB’s price drop makes it cheaper than Capitec, it still costs more than TymeBank, Nedbank and African Bank.
First National Bank (FNB) - South Africa’s second largest bank in terms of total assets - has dropped prices for its entry-level account in its annual pricing review.
FNB’s Pay-as-you-use account now starts at R4.95 a month, down from the R5.75 it previously charged. The prices will be effective from July.
Christoph Nieuwoudt, CEO of FNB Consumer, said the price decrease is in response to competition from other banks in the entry-level market.
Business Insider South Africa compared FNB’s Pay-as-you-use account with other entry-level bank accounts offered in South Africa.
FNB’s 80c price decrease brings it in line with Standard Bank’s MyMo transactional account, and makes it cheaper than Capitec’s Global One account which costs R5 a month.
It is, however, still more expensive than African Bank’s MyWORLD, TymeBank’s Every Day, and Nedbank’s Pay-as-you-use account which charges zero monthly fees.
African Bank and Capitec also offer consumers interest rates of 5.5% and 5% respectively on their entry-level bank accounts, while Digital Bank Tyme Bank offers consumers 10% through a separate free GoalSave account.
The GoalSave account doesn't have a notice period for money to be transferred, but if consumers give a ten-day notice they are entitled to an undisclosed bonus to the interest they've already earned.
FNB’s pay-as-you-use account offers no interest fees.
A version of this article was first published on May 25, 2019.
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