Banks hiking entry-level fees

UPPER END: ACCOUNT FEES UP IN LINE WITH INFLATION

At the higher end, monthly bank account fees are up in line with inflation; in the more competitive and price-sensitive middle market, increases are more moderate.

Bundled pricing for entry-level account bundles is up sharply, at 9% for Nedbank’s Ke Yona Bundle and 10% for Absa’s Flexi Value Bundle. In July, FNB hiked the price of its Easy Smart Option (bundle) 9%. Standard Bank doesn’t offer a comparable account.

For basic entry-level accounts, only Nedbank has kept pricing frozen (at R5.50 a month). Absa’s Transact and Standard Bank’s Access accounts are up 7% yearon-year, to R5.30 and R5.60, respectively. In July, FNB increased its Easy account pricing 10% to R5.75. All increases are measured year-on-year from January 1, but all three adjusted fees on April 1 to account for the VAT increase. Thus the change from what customers currently pay (which includes the VAT adjustment) will be slightly lower than the yearon-year one.