Bank Zero
  • Bank Zero just announced its fees for 2022.
  • It is keeping essential banking services free, but will charge you for third-party services like sending money to someone without a Bank Zero account.
  • Close competitor TymeBank also doesn't charge a monthly account fee – and is cheaper on other services.
  • For more stories, go to www.BusinessInsider.co.za.

Michael Jordaan's Bank Zero, which officially started accepting customers in August, has just released its banking fees for 2022.

As implied in its name, Bank Zero has a no-fees policy for the most basic of banking services. The bank only charges for extras, such as third-party services, including sending money to a non-Bank Zero account holder and withdrawing cash at an ATM.

However, the bank doesn't charge its clients for services such as account balance requests and payments to recipients.

Here's the complete list of services its customers can run at no cost

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Services Bank Zero will not charge you for. (Image: Bank Zero)

These are the services you will pay for

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What Bank Zero will charge you for. (Source: Bank Zero)

Bank Zero is not the only digital bank with a model built on low-cost banking; its direct rival TymeBank, backed by billionaire Patrice Motsepe, also positioned itself as an ultra-low-cost bank when it debuted in South Africa.

Placed against Bank Zero, some of its services are cheaper. For example, Bank Zero customers save about 30% for a R1,000 cash withdrawal at an ATM compared to Tyme Bank clients. 

Here's what TymeBank will not charge you for

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tymebank
tymebank

TymeBank charges R3 for cash withdrawals at retailers (except Pick n Pay and Boxer stores) balance enquiry at ATMs, and for an ATM decline if you have insufficient funds, or use an incorrect PIN.

A cash deposit at a Pick n Pay and Boxer till point will cost R6 per R1,000. Its other services that carry a R6 charge include sending a cash voucher to a non-TymeBank.

A cash withdrawal from ATMs costs R10 for every R1,000.

Big four bank FNB in 2019 introduced its Easy Zero account, which, similar to Bank Zero and TymeBank has no monthly account and debit fees.

However, withdrawing cash costs R7 per R1,000 while drawing from a non-FNB ATM will cost you R15 per R1,000. Depositing cash at an FNB ATM is free up to R1,500, while depositing at a till costs R19.95. EFT payments cost R1 on the Easy Zero account.

While Bank Zero's fees are considerably cheaper than FNB's Easy Zero, TymeBank, its closest competitor and the only other digital bank committing to low-cost banking, offers better rates. 

(Compiled by Ntando Thukwana)

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