I am so sick and tired of opening a newspaper and seeing the big three banks hogging full page spread adverts using bait and switch tactics in order to gain market share. The clincher was opening the Sunday Crimes this past weekend and seeing a THREE PAGE advert encouraging me to get an iPad or whatever – of course terms and conditions apply so you actually end up paying more.
Moving bank accounts is such a pain so most of us just stick with the devil we know. Poor Steve – I don’t think that story is actually based in reality however funny it is.
Let’s face it – what do we need out of a bank? Somewhere to put our money where the more adult amongst us will expect to be rewarded by gaining interest on a positive balance and punished by having to pay interest on a negative balance. It is not rocket science.
With the advent of internet and mobile banking we are actually helping to keep bank costs down enormously and I secretly think that we should be rewarded each time we do a transaction online as each online transaction contributes to lessening the banks cost of staff and transporting money. Of course less feet in the bank also leads to less chance to sell hapless clients ever more sophisticated sounding financial instruments which are basically a thinly veiled attempt to extract ever more money out of our pockets in the guise of fees, interest and charges for stuff we don’t need.
The BIG THREE banks should learn this valuable practical lesson from me:
Last year I opened a Capitec bank savings account after doing an exercise to see just how much my so-called savings account from my bank of 28 years was costing me – shocked does not even begin to describe my disgust. Opening the account was quick and easy after I ascertained that they would accept a certain ‘foreign’ cheque each month as a deposit.
Depositing money is a cinch – I present my card, enter my pin number and they swipe the cheque. No filling in of forms, no stamping of every stray piece of paper in sight, no extra stamp and signature on the back of the cheque – simple and easy in contrast to my bank of 28 years standing (Okay, I have learned to go to a specific Capitec teller as her cheque swipe machine thingy works every time!).
Internet banking is easy – the site loads fast and is simple, you are issued with a random code generator that is matched to your account and you are requested to generate and input a code whenever creating new beneficiaries and making payments. Internet banking is included in your monthly fee of R4.50 (YES YOU READ RIGHT – R4.50 a month). Internet payments are R2.50 each.
You can draw money from the tills at most supermarket chains – at a charge of a R1.00. All branches are open longer than traditional banks and branches located in certain shopping malls are also open on a Sunday.
BUT, the clincher for me is NO transaction charges when you swipe your card when making purchases – fuel included. In addition Capitec offers a good interest rate of 6.6% on balances below R10 000.00 – you are encouraged to open another savings account for any money over R10 000.00.
The downsides are – no bonds, no business accounts, no credit cards, no online unit trust and share investments, drawing from a ‘foreign’ ATM costs R7.50 and never ever lend money – the offered rates look expensive.
I can honestly say that for the six months that I have been running the Capitec Savings Account that I have come out ahead at the end of each month – not by a lot but, in comparison to what I was losing each month with my bank of 28 years, enough to buy a decent meal for the Longhair and I at the Chartroom Restaurant.
Of course the kicker for Steve and the BIG THREE banks is the following fact:
At every single tillpoint I get asked if Capitec bank is any good and I launch into a shorter version of my positive experiences with Capitec and the MOST IMPORTANT thing of all that I actually get something out at the end of the month.
Do you even bother to tell random people just how impressed you are with YOUR bank?
And who turned me on to Capitec? My son, Philip, who spent ages studying the fees of the different banks before choosing which bank to support – he will make a good accountant one day.
Click here for Capitec Bank Port Elizabeth branch details.
Capitec Mentions on Twitter:
Capitec just smsed to say they're lowering their internet banking fees. #ILoveCapitec
— Faatimah Hendricks (@GarlicNaan) March 2, 2012
Thanks @capitec for making picking up my new card so effortless 🙂 I can't remember when last I spent 3min in a bank.
— Dirk J Bosman (@dirkjbosman) March 3, 2012
What do you want from your bank? Read The Capitec Speak Up! Project http://t.co/bhZuLV66
— Vanessa Becker (@nesbecker) March 5, 2012
Dear major banks, Capitec is doing a great job at making people think twice.
— Milase Mzamo (@mnazania) March 5, 2012
There's no atm more efficient than capitec's
— Matsobane (@Madtzoo) March 7, 2012