Fin24

Nedbank: Bank costs hard to assess

2012-10-19 20:35

Johannesburg - It was difficult to compare Nedbank Group [JSE:NED] fees to those of other banks because it tailored its accounts to suit clients, the bank said on Friday.

"We acknowledge the difficulty in conducting a fair year-on-year comparison of average monthly bank fees across a wide range of product offerings," it said in a statement.

It was responding to research on bank charges released by Solidarity on Thursday. The trade union found that four of the five large commercial banks in South Africa had lowered the cost of virtually all their accounts over the past year, with Nedbank as the only exception.

Said Nedbank: "However, each product offering has different qualification criteria and [is] tailored for the specific needs of a client segment."

Solidarity compared charges of personal bank accounts offered by Absa, FNB, Standard Bank, Nedbank, and Capitec.

Nedbank's cheapest option was its Savvy Electronic account, with average monthly charges more than double those of Capitec.

Nedbank had increased charges by 4.5% on this account, from R107.79 to R112.61 over the past year.

Nedbank's Anton de Wet said on Friday the account was not the bank's cheapest.

"We are confident that Nedbank Savvy offers great value for clients who do high volumes of mostly electronic transactions," he said.

"As part of our continuing journey, we are pleased to announce that the fees for other banks' ATM withdrawals will be reduced by R10 effective 1 January 2013, further enhancing the value of this offering."

He said the bank had, for the past seven years, been simplifying products and lowering fees.

"We actively help clients to reduce their fees by selecting the right product to suit their needs through full needs-analysis selling, providing free on-line saving tools and a pricing call centre."

The bank's cheapest "transactional account" was the Ke Yona account.

Comments
  • kim.buren - 2012-10-19 21:14

    You still have no chance against Steve

      Eterni80 - 2012-10-19 21:17

      Steve who ?

      andrez.kolesky - 2012-10-19 21:50

      @ margie.resburg. Skerp Dolla, baie skerp HA !!!

  • warren.slater.353 - 2012-10-19 21:21

    Nedbank are totally useless. After about 30 calls they finally agreed to transfer my money from 1 account to another, and close the empty account. When I queried why the transfer seemed to be a couple hundred rand short they refused to tell me because I'm overseas and they couldn't verify my identity over the phone. A reasonable concern I thought, so they suggested I send in my Power of Attorney which I did. They then refused to give my POA any details because the account I was querying was closed. I even posted a complaint on "Hello Peter" to which Kamal Bipulprasad of Nedbanks Executive Service Support responded. He was pleasant but completely useless too. Many more phonecalls and much frustration and eventually I just gave up and let Nedbank suck my account dry with monthly admin fees. This is how they treated a client of 20 years. This is 1 of the messages I received when asking why they weren't replying to my queries. Good day, My apologies for that but ui couldn’t access most of my emails because my outlook was off line on Wednesday and yesterday, some of my emails were lying on my junk mail coz my mailbox is full. Regards, Personal Banking & Client Value Management: Operations and Collections Recoveries Attorney Liaison Officer : Legal Recoveries One must be really brave to entrust their money to a business that employs useless unprofessional people.

  • lacrimose.wolf - 2012-10-19 21:25

    Seven years to 'simplify'? As with every other "authorised financial service provider" out there, you've got an army of lawyers and accountants milking every piece of legislation in existence AND getting the jump on legislation about to be passed. You're a bunch of legal Houdinis with the mindset of the corner "find the lady" touts.

  • thinus.v.rensburg - 2012-10-19 23:24

    Agree that they are useless. I am overseas but still used my 20y old account a few times a month. Nedbank on sided decided my account was "dormant" and simply closed it, transferring the remaining money to my Australian account. No explanations, no notice, just sent me an account wit a zero balance that didi not even state they have closed the account. E-mails are useless, phonecalls are dropped after 30min. I finally asked a relative to visit a branch. Told that I had to personally attend a branch in SA before tey would consider re-opening my account. Pathetic service

      warren.slater.353 - 2012-10-20 00:25

      That's more or less what happened to me. I did however setup a Power of Attorney with Nedbank before I left. Myself & the POA had to physically go to the bank. All completely reasonable I thought, except it wasn't when I really needed them. Couldn't believe the caliber of staff or how bad their call center & service was...especially when they know you're far away and at their mercy

      lacrimose.wolf - 2012-10-20 00:33

      Well in 20yrs much has changed including the FICA regulations - allegedly to prevent money-laundering. Every account holder has to produce certified identification and certified SOUTH AFRICAN address to have a bank account in ZA.

  • darin.graham.7 - 2012-10-20 00:51

    They shouldn't have bank fees in the first place! I was shocked to find when I moved to South Africa from the UK that you have to pay to have a bank account! Not only that, you have I pay to withdraw and for transactions. Don't even far try withdrawing from another banks cash machine. I think South Africa's bank system is developed enough to be on par with the rest of the world by now. I must say though, I am a Nedbank customer and have never had a problem with their customer service.

  • shaneduplooy - 2012-10-20 05:55

    Nedbank is a useless bank, way to conservative and still charges you what they want, when it comes to getting a homeloan you dont even stand a chance! I hope they loose all their clients, its so easy to move to another bank, I was 14 years at Nedbank and moved and now a happy FNB client!!

      Willie Olivier - 2012-10-20 07:27

      viva FNB

  • bill.flannigan.9 - 2012-10-20 07:49

    Last year in October I used my Nedbank cheque card for cash withdrawals overseas at a charge of R20 per transaction. This year the same service was charged at R65. Am now looking at moving to Capitec as this is a blatant rip off. There was no communication during the year about the increased fees.

  • oj.vanderschyf - 2012-10-20 07:51

    I am currently in a dispute with Nedbank to get them to at the very least enter into some negotiation to re-look at our small business banking fees. They refuse to do so stating that "...at this stage though we reserve the right not to reduce these charges as there is no scope for reduction..." and that their fees are "...market-related and competitive." Their Small Business Services pledge which states that “… we shall work closely with you to review your current financial status and find ways in which Nedbank’s banking solutions can be optimised to suit your specific needs” is to my mind totally disingenuous. Our conclusion from the above is that Nedbank shall not entertain and is unwilling to negotiate favorable banking charges with small businesses. Due to their intransigence we are currently considering changing to FNB.

      robert.m.sylvester - 2012-10-21 10:01

      All banks are pretty much the same. All of them are only interested in bleeding their victoms for as much as possible. If you consider the electronic capabilities today, you will discover that bank costs have virtually "dissapeared". Their "charges" are blatent acts of theft. AND the staff are usually incompetant. Any quiery is never answered unless you have a contact within the bank - and the bank makes this virtually impossible to aquire. Sadly these are common symptoms today. I would hesitate to recommend ANY bank these days.

  • merry.martin.944 - 2012-10-20 08:19

    It is not difficult to compare Nedbank charges with other banks... Std Bank charges a cash deposit fee - Nedbank charges a cash deposit fee PLUS another fee of R 4 for every cash deposit. Not difficult to work out at all.

  • bra.tabs - 2012-10-20 08:47

    Nedbank ruthlessly kept charging me for so caleed HonFee penalty at around R180 on average and over R200 transactional fees on its nedbank savvy account eventhough I do less 5 withdrawals a month, plus R165 management fees. On my business which is mostly dormant, i've been charged R175. Talk about daylight robbery.

  • herman.kramer.988 - 2012-10-20 09:06

    BS! Never paid so much in charges as with Nedbank!

  • andre.kuhn.583 - 2012-10-20 10:36

    All bankers, attorneys and many more organisations i.e. government are hughly overpaying themselves. The are no checks and balances. Its a big closed shop.

      robert.m.sylvester - 2012-10-21 10:04

      @margie - They are all profiteering pirates. I do not have the answer for you.

  • mullerier - 2012-10-20 11:05

    Really?

  • kobus.hattingh.5 - 2012-10-20 11:11

    I most definitely also would NOT recommend Nedbank is Capitec is the way to go!

  • rigel.bernard - 2012-10-20 11:59

    caught with your foot in the mouth there nedbank, u're the most expensive bank in south africa

  • wendy.webb.980 - 2012-10-20 12:36

    I am with Nedbank for one reason. I have one of the original Pick & Pay Go Banking cards (not offered new for several years now) for which, with a minimum balance of R5,000, you effectively get free banking aside from the current monthly internet charge of R16, unless you are silly and draw your cash from ATMs instead of at the P&P checkout while doing your shopping. Their interest rates now are negligible - used to be very good, and their charges, if you don't maintain the R5,000 minimum balance, are sky high, however for those of us who still have those accounts and maintain that minimum balance, the Go Banking account offers phenomenal value for transactional banking. My salary now goes into my Go Banking account, and savings are transferred elsewhere. Even if I compare what I could save on interest by putting that R5,000 into my bond, and going with lower charges at another bank with no minimum balance, or paying a fixed fee elsewhere with no per transaction charge, I still come out way ahead. Interesting that Go Banking never got more than about 90,000 customers even when their charges were lower and their interest rates were exceptional, probably because they never had the "bling" value of being able to flash a Gold or Platinum card!

  • arthur.salvado - 2012-10-20 17:15

    Ya swaar, pull the other leg. Public are perhaps helpless in many cases BUT not stupid. I suppose someone has to pay for the golf at year end. TV coverage very good and thus free advertising. I like the way you do business and thats why I don't bank with nedbank.

  • lydonmcg - 2012-10-20 18:54

    Wow. Talk about a PR fail.

  • robert.m.sylvester - 2012-10-21 09:48

    What a load of absolute bull

  • flysouth - 2012-10-21 14:23

    Banks deliberately 'tailor' their account charges to ensure that it is virtually impossible to make any realistic comparison between them. They have always done this as a competitive strategy. Nothing really wrong with this, except that they all, without exception charge far too much for the simplest of banking services. As for Nedbank, are they still so arrogant and controlling that they will not allow users to set up their own payee accounts on Internet banking? Living in the dark ages.

  • sandile.filita - 2012-11-15 19:57

    NetBank are just a bunch of thieves charging insane fees.

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