Nedbank announced its fee changes for the year ahead this week and for the first time in three years the bank has increased its fees. Twenty percent of the fees will rise by an average of five percent, says Bryan McLachlan, the head of transactional banking.
"Other banks have increased fees over the same three-year period - some have increased their fees four times," he says. Nedbank was once the most expensive bank in the market, but McLachlan says an aggressive pricing strategy over the past four years means it is now one of the most cost-effective banks.
Eighty percent of Nedbank's charges remain unchanged. These include the monthly digital banking subscription fee, which remains unchanged at R22.80 a month, but is still the most expensive subscription fee for accessing internet, cellphone and telephone banking channels.
If you bank with First National Bank, you do not have to pay any monthly fees to access electronic banking, while Standard Bank customers pay R22 a month and Absa customers pay R19.95 a month.
Although you have to pay a monthly digital banking subscription fee, you do not have to pay for any balance inquiries, inter-account transfers or third party payments made via cellphone banking or telephone banking.
You will pay a fee of R5 for making a combined purchase and cash withdrawal at any Pick 'n Pay store, including Score and Boxer stores.
Last year, you would have paid R4 for the same service. However, if you have a Nedbank Everyday current account, you would be better off using an ATM as your first four withdrawals at a Nedbank ATM are free.
If you manage your budget and limit your cash withdrawals to one a week, you will not pay any withdrawal fees.
Once you have made four cash withdrawals from a Nedbank ATM, the bank will charge you R7 for each cash withdrawal from a Nedbank ATM.
Cellphone top-up
Nedbank has also reduced the cost of topping up your cellphone airtime at a Nedbank ATM, from R3.60 a transaction to R1 a transaction. The other three major banks offer you the same service at no cost.
You will now be able to make one free balance inquiry each month through each channel, and balance inquiries thereafter will cost you R1 each at a Nedbank ATM, R3 each at a self-service terminal and R1.65 at a Nedbank branch, McLachlan says.
The new pricing comes into effect on July 1, 2008.