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Banking
Friday, June 1, 2007
Rare event

First National Bank (FNB) has announced a significant decrease in prices and declared several day-to-day electronic banking transactions - including cellphone banking - free. In all 15 fees have been abandoned and 10 fees reduced while Mzansi fees have been reduced by 14%.
From 1st June 2007, all individual FNB customers with cheque, transmission and credit card accounts will enjoy free cellphone banking, telephonic banking, prepaid purchases, ATM balance enquiries and ATM cash deposits.
Annual credit card fees will drop by as much as 56%, with all categories standardised to R99 per month for those settling electronically and R155 for those staying with the postal services.
“The price reductions should encourage our customers to change their transactional behaviour by using cost-effective electronic options to do their day-to-day banking,” comments FNB Pricing Executive James Fowle.
“Electronic banking is convenient for customers because it addresses security risks associated with handling cash. It gives customers 24-hour access to banking without having to use scarce time and financial resources to travel to distant branches and ATMs,” he adds.
He said the overall increase had been limited to 2.2%, well below the rate of inflation, with most fees remaining unchanged. The free electronic channels announced will further result in significant savings for existing and new FNB customers.
There will no be no monthly overdraft fee for existing FNB overdraft customers. New personal overdrafts established post 1st June only will be charged a fixed fee of R14 in terms of the National Credit Act.
With its electronic pricing option clients will pay a maximum of R85 per month for unlimited FNB ATM and mini ATM cash withdrawals, cellphone banking, telephone banking, internet banking, debit orders and stop orders as well as cheque and debit card purchases, petrol card purchases.
FNB differs from competitor offerings in that the R85 is a maximum fee, not a monthly fee. So clients could probably pay less, depending on their transaction profile.
FNB has a fee saver option in terms of which, for clients maintaining a minimum balance of R8 000 in their cheque account, they pay no fees, and get 35 free qualifying transactions per month.
Package pricing for Youth (Future) Teens (Fluid), Students (Lifestart) and Seniors (Encore) remain unchanged, except that free cellphone banking, telephone banking, prepaid purchases, ATM cash deposits and balance enquiries also apply.
Cash withdrawals, according to FNB, “remain the cheapest in the market.”
Contact your local branch for the full details. 

Copyright © Insurance Times and Investments® Vol:20.5 1st June, 2007
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