FNB increases private banking fees and launches new mid-market account
FNB will increase the monthly fees for its Premier, Private Clients and Private Wealth accounts from July 1 after last year’s freeze due to the impact of the Covid-19 pandemic.
Read: FNB takes 70 million R2 on fees (March 2020)
The price of the plan on Fusion Premier will increase from R209 to R219 per month, on Fusion private customers from R385 to R399 per month and on Fusion Private Wealth from R470 to R499 per month. These are increases of between 3.6% and 6.2%. The monthly fees for non-Fusion products will also increase.
Entry-level Easy Zero (no monthly fees), Easy PAYU (pay-as-you-use) (R4.95pm) and Easy Smart (R59pm) account fees remain the same. Cash withdrawals from ATMs on Easy Zero and Easy PAYU accounts have been reduced from R8 by R1,000 to R7 by R1,000 (up to a limit of R2,000).
Focus on value
The bank focuses on the value offered on its accounts, positioning it as “three times the monthly account fee”. Rewards through eBucks, free FNB Connect data, and bulk trades are part of this value. He argues that on Premier, for example, customers receive R599 in value.
A major change is that from July, customers will be able to pay their monthly transaction fees with eBucks.
FNB will also withdraw its cliché Gold account and replace it with a brand new product, Aspire (it was the first bank in the market to open a “gold” account). Aspire ETFs at R99 per month is more affordable than the account it replaces (currently R109pm) and is also “value” focused.
Johan Moolman, CEO of eBucks, says “In Aspire, things are changing for the better”.
The way eBucks works on Premier, Private Clients, and Private Wealth – with prioritization and point levels – is breaking down.
Quite simply, Aspire customers who qualify for eBucks (minimum deposit and three in-app payments / purchases) will earn up to R150 per month in four categories:
- Shopping at Shoprite / Checkers / USave
- Shopping in clicks
- Fuel purchases at Engen
- Bus tickets with Intercape
|When you visit one of the partners during a calendar month||Aspire ETF checking account (or standalone Aspire credit card)||Current account or merger Aspire ETFs and minimum savings balance or loan product|
|R500||R25 in eBucks||R25 in eBucks|
|1000 rand||(another) R25 in eBucks||(another) R25 in eBucks|
|000 R2||n / A||(another) R50 in eBucks|
|3000 R||n / A||(another) R50 in eBucks|
|Total potential gain per month||R50 in eBucks||R150 in eBucks|
This equates to a winning rate of 5%.
On fuel purchases from Engen, Moolman says Aspire customers will earn a fixed rate of 60c per liter until they reach each reward amount (e.g. R25 in eBucks) and up to the limit. reward (R150 in eBucks).
If they have a vehicle financed by Wesbank and refuel exclusively at Engen, this is doubled at the end of the quarter (to 20 R1 per liter).
Aspire’s launch – with a black card – comes after Capitec changed the color and positioning of its card from gold to black in 2019.
The middle income market is arguably the most competitive segment in the country and the late repositioning of the FNB account targeting those earning between R15,000 and R37,500 per month is a clear response to Capitec.
As part of Aspire, it will also offer customers the opportunity to earn a shoe reward. Fundamentally, this seeks to position his account in relation to Discovery Bank’s Vitality Money (and broader Vitality) proposition.
To be rewarded with up to R1 500 for a new pair of shoes each year, Aspire customers must spend at least R4,000 per month (every month for 12 months) and either:
- Increase your savings by 500 rand per month; or
- Maintain a savings balance of at least R16,500 each month; or
- Have FNB funeral coverage (minimum coverage of R50,000); or
- Have an ETF life insurance policy (minimum coverage of R400,000).
On its four Aspire accounts at Private Banking, it will also offer 50% of the monthly account fees for spouses and partners from July.
It inspires families to do all of their banking with FNB by offering additional eBucks rewards, FNB Connect data for kids who have FNBy accounts, as well as rebates / rewards for investing, loan and money products. insurance. These accounts (Aspire, Premier, Private Clients, Private Wealth) will also offer eight free unpaid debit orders.
A number of changes have been announced to FNB’s eBucks program. These will be detailed on Moneyweb tomorrow.