BUSINESS NEWS - FNB has increased the monthly account fee on its popular Premier bundle (and Fusion account) for the first time since 2014. From July 1, the cheque account and credit card (including facility service fees) will cost R209, from R199 previously. This upper middle market account offers customers “private clients”-type benefits, such as access to a dedicated pool of bankers as well as airport Slow Lounge access. Fees for FNB’s Private Clients and Private Wealth bundled accounts increase by 5% and 11% respectively.
On its middle market Gold Account, monthly account fees remain at R105, after last year’s increase – the first in three years. This is arguably the most competitive market segment in the country. Fees on the mass market Easy Bundle jump 9% after the 8% increase 12 months ago, while the base fee on the entry-level Easy Account is up to R5.75 (from R5.25 in 2017 and R4.95 in 2016). It has held fees steady on the FNBy youth account which it launched last year.
Ryan Prozesky, CEO of FNB Consumer Core Banking, asserts that FNB is the only bank that absorbed the VAT increase in April, so any increases are not as steep as they appear and that those fees which remain the same are actually cheaper.
FNB’s full pricing guides are available here.
The other ‘usual’ increases
Cash-related fees continue to increase, although bundled-accounts customers get cash withdrawals up to a certain amount free (using its ATMs or Cash@Till). These are: R9 000 per month on Premier Bundle (Fusion), R7 000 on Premier Unlimited, R5 000 on Gold Accounts and R3 000 on the Easy Bundle (or FNBy for over 18s).
Pay-as-you-use pricing for withdrawals (or for non-bundled accounts) is a flat rate of R1.60 for Cash@Till (from R1.40 last year), R1.90 per R100 for FNB ATMs (from R1.85/R100) and, at other banks’ ATMs, a fee of R9 plus R1.90 per R100 (R8 + R1.85/R100).
While it has seen some success in driving customers to use Cash@Till instead of ATMs, use of the retail channel is not yet at the level FNB wants. But the end goal, says Prozesky, is not cash at all, rather the card swipe.
Steep charges for in-branch cash deposits which incentivise customers to use ATMs with automated deposit functionality increase to R60 + R2.10 per R100 (from R60 + R1.90/R100). On bundled account options, cash deposits at ATMs are free up to the same thresholds provided for withdrawals (e.g. R9 000 per month on Premier Bundle/Fusion).
The bank says that over the past year, it has driven down the volumes of cash deposits and withdrawals at branches in its mass/middle market Easy and Gold base by 55% and 28% respectively.
