A while back when I was buying a car, I posted about Standard Bank’s ridiculous charges for car finance. Their charges for everything else are equally ridiculous. I noticed that they were recently placed at number two hundred and something in the Forbe’s global top companies list (up from five hundred something). I can tell you why they are so high up the list, it’s because they charge ridiculous fees to use your money.
I’ve been with Standard Bank for many years (15 or so) and I have a basic achiever account, nothing fancy (I’m just a poor boy from a poor family). The minimum monthly fee is R57, internet banking is R22, which is nearly R80 a month for nothing. If you actually have to transact, you’re in bigger trouble. Withdrawing R1000 from a Standard Bank ATM will cost R14. I don’t even want to talk about the cost of making payments as my blood is starting to boil. To add insult to injury, you earn no interest on your current account!
I’ve decided to leave Standard Bank and move to Capitec. Monthly account admin fee is R4, to withdraw R1000 from ANY ATM is R6.50 (or R1 if you use a Capitec ATM) and internet banking is free. All the other account charges are equally reasonable and you earn 10% interest on your current account balance.
I opened my account on the weekend, it took about an hour and everything seems to be in order. I plan to close my Standard Bank account next month and will let you know how everything goes.
Loading ...
In the middle of the same process. Bect part about Capitec is zero charge for a debit card transaction !
If you think Standard Bank are bad, you should try Nedbank! The biggest bunch of morons that ever infested the face of our planet!
I agree with gmk everybody stay very very very far away from NEDBANK or as i like to call them “Hell Bank” this bank will trample you so deep into the ground with bank fees that your only choice to get out of it again would be to commit suicide. Everybody which has complaints please log them on “Hello Peter” so that other potensial clients would not bank with those banks. I am looking for a new Bank and it looks like Capitec might just be that bank.
I’m also with Standard, and have been watching with my jaw dropping as they suddenly hiked up all my fees, without so much as a by your leave… Now, instead of the flat fee I used to pay for all transactions, I’ve begun to pay what appears to be a percentage based fee. Not once did they bother to ask me about it, let alone give me some kind of headsup. Totally ridiculous, as far as I’m concerned. I’ll be keen to hear how it goes with Capitec…
Hey Dax
Interesting point you have made. I have made a calculator which compares all the bank charges here in ZA. http://www.justmoney.co.za/bank_account_charges.aspx
Give it a try it will more than likely confirm what you are saying, but for the average usage profile Capitec Global One account is a winner.
How important do you rate customer service in relation to price? What’s the most important factor when choosing a bank to commit to?
Thanks Greame, I used the calculator and it confirmed that I will actually be earning money on my current account as the interest will be higher than the fees. Looking forward to that phenomenon!
Dianne – my banking requirements are simple. I need an account to hold my money and allow me to make some payments, etc. Service does not play a role. Maybe a business account would be different.
I’m not suggesting that Capitec service is worse than Standard Bank’s. For all I know it could be better.
@Dianne Hi!
We have put together a poll looking at what people look for in a bank. It can be found here:
http://twtpoll.com/r/fdczxm
@Dax good luck with your new account would love to hear how you find them when you swap over
@Graeme – Thanks for creating the poll, it’s going to be interesting to see what the results show!
@Dax – Keep us posted on the customer service you get as well – great products indicate a customer-centric organisation, so let’s see if this is followed through on the customer service front.
hi dax,
awesome, thanks for being the guinea pig. and please please please keep us posted cos from what you have said, Capitec sounds awesome.
did you move your credit card to them too (if you have one)? am wondering if it’s going to make sense for me to move there – cos i currently have a Std Bank current account which is linked to my Std Bank credit card which is really convenient ito payments etc
I do have a credit card with Standard Bank but I don’t use it, it’s my spare card in case something happens to my primary card which is a Discovery card. Capitec does not have a credit card, although I’m sure they will in the future.
What I do know is that paying your Standard Bank credit card online from your Capitec account will still be cheaper than transferring money from your other Standard Bank account. That’s the whole reason I am moving.
I would suggest you kill the Standard Bank credit card and replace it with a Virgin credit card (no annual fee) and kill your Standard Bank current account and switch to Capitec. That will be the optimal combination.
I will stick with my Discovery credit card because the loyalty points are really worth it.
hi dax
thanks for advice… sounds all good to me. you should maybe consider a career in personal financial planning? :)
Hi Dax
Great to hear you’ve opened an account with us! You’ll definitely enjoy the cost saving benefits and we try to make banking as simple and easy as possible too.
And just shout if there’s anything you need help with.
Cheers
Sumarie Brand (Capitec Bank)
Hi Dax
I found your blog while I was searching for info on Capitec. Sounds like you just did what I am thinking of doing. After being with Standard Bank for the last 19 years, I think it is time for a change.
The last straw was when they charged me a total of R380 in “over limit” fees on my cheque account, while there were plenty of funds available in my savings account. I realize that this was my fault, but I am sick and tired of logging into internet banking to shift numbers around.
What I like about the Capitec account is that everything is in one interest bearing account. I can just put all my savings into the account and transact from there. Why can’t other banks do this?
I am still looking at the different options, but Capitec sounds like it could work for me. I will check back here to see how things worked out for you.
I moved to Capitec about a year ago. I was with Standard before, let’s not even talk about that. I have been nothing but blown away by Capitec’s efficiency, fees and interest. I nearly fell over the first they put money INTO my account. I have nothing but rave reviews for Capitec and encourage anyone who is thinking of doing a switch.
FYI I moved my credit card to Virgin Money where I also get 10% on any positive balance. They have also been really great to deal with in comparison to Standard Bank, except that I obviously have to pay back any amount that goes into credit. When you find a bank that doesn’t require you to do that, kindly let me know!
An update on my progress with moving from Standard Bank to Capitec:
I had to make a second trip into the Capitec branch to open my savings account linked to my current account. I could do it all from one account as the interest is the same but for security I want my savings separate (don’t want to be kidnapped and held at gunpoint while they empty my life savings out of my account at R1000 per day – that would take 2 days!).
I could have saved myself that second visit if I had thought about it before I went in the first time.
I closed my Market Link account at Standard Bank and had them transfer the balance to my current account. When that was done, I transfered that into my Capitec Savings account.
Then I logged onto Capitec internet banking, it’s a very basic online service, but I could do what I needed to do which was set up repeat payments for my rent etc. I had to phone the call centre to get the details for the FNB suspense account so that I can pay my discovery card. The Capitec call centre was efficient and helpful.
I have now contacted all companies that debit my account every month and informed them of the change of details. I have also informed HR of the new details for my salary.
I have left some money in my Standard Bank account in case I have forgotten about some debit. I will close it next month and the process will then be complete.
It’s been a bit of admin, but I think it will be worth it.
Hi Dax
This has interested me a lot (being a long time Standard Wank customer).
Can you post some details on how to obtain these Capitec and Vigin Acounts?
Is it just a matter of going to a branch near you?
All the best !
Hi Simon, opening an account is easy. Just go to your nearest Capitec branch with your ID and a recent utility bill (to prove your residential address). It takes a few minutes and you have your shiny new bank account.
For the Virgin credit card, go to http://www.virginmoney.co.za and click on ‘Apply Now’. Easy as!
Although last month’s Justmoney poll, What Do You Look For In A Bank?, showed that customers want low bank charges above all else, it seems like Capitec have a great system in place: low bank charges and a customer-centric approach. Well done :)
What about credit history when applying for home or business loans ? I went to standard bank yesterday and asked their opinion on the fact that all their customers are going elsewhere, their response was that yes you do get better rates but when it comes to credit history this might affect you when applying for loans…
I doubt it will affect you when applying for loans. The Credit Act specifies the criteria that is used to evaluate your credit worthiness.
Loyalty is a thing of the past. You have no ‘relationship’ with your bank even if they try to pretend that you do. When you want a loan, they type in the numbers into their software program and it tells you how much you can borrow and that is that.
Also looking at changing banks after checking my last ABSA statementto see they have been charging me more than R400 a month on basic electronic transactions. Phoned ABSA and they now tell me they can give a managed account fee option at half my current fees. LOL – now after ripping me off for 13 years. Really peaved and made up mind to change banks and came across this blog while doing research on Capitec.
I would be interested to hear your experience, as I have been thinking of transferring all my accounts from Absa to Capitec. Do you have Capitec’s all-in-one account and have you transferred your vehicle and bond to this account as well and if so how was there rates ?
I don’t think that Capitec offers car finance or bonds (I have neither). One would still need to keep those with the institution where they are currently.
But paying the monthly installments will be cheaper with Capitec as the transfer fees are low.
capitec is a real bank that you can capitalized on it,in terms of financial charges(e.g transaction that is good to can attained to)since i join capitec several month ago,i have never been seen myself panic about financial viability.thank u capitec bank,what i like to know more is about notify me and how can i be seen notify interms of financial transaction.
And so it it done, after more than 15 years with Standard Bank, I walked into the Paddocks branch today and closed my account.
They tried to convince me not to do it, but after I explained the benfits of moving, I think they might move their own accounts too.
I have a cheque for the balance in my Standard Bank account and when I have deposited it into my Capitec account the process will be complete.
Why did it take you so long to realise? I left Standard Bank more than a year ago and i have saved a lot on charges.
Now i am being victimised. For a personal loan i took from Standard Bank, though i pay for it regularly, i have a number of calls from Lawyers representing Standard Bank. I have ignored those lawyers. I have proof of payments i make.
In these difficult moments, banks should be good to keep customers but standard Bank is not.
Well, today I tried for the second time to open an account with Capitec. They do not have a branch in my area so it is quite a mission to go there. The first time I went there I had an outdated utility bill, so that was my fault I guess. Today when I went there, they all of a sudden wanted some or other tax certificate. So I told them that they just lost a customer – I am not going a third time. I still want to leave Standard Bank though, so the search is on again…
I am a ex-Standard bank customer that changed to Capitec last year for my small bussiness. It was the best decision I could ever have taken. My banking fees are so low and their service is GREAT!!!!
We are 12 ladies in a “stokvel”- we use to have a Standard Bank account for savings. This amount is about R45 000 per year. At Standard bank the interest we earned was always just about exactly the same as the banking fees for the year. We started banking our money at capitec in july last year and end of November each member could be paid out an amount of R200 interest! WoW!! it might seem like a small amount but it was R2400 in 6months! I think that is excellent.
I do a lot of internet banking- capitec’s website is user-friendly and it is cheap!
I wish I could move all our accounts to capitec. But they do not have a home loan or cheque account facility. So my husband unfortunately has to stay with ABSA!
I would recommend a swop to Capitec for anyone that wants to save! My grandmother’s favourite saying was that if you do not save a cent you can never save a rand!! She was a housewife on a farm all her life and made some money raising chickens, selling eggs, doing crochetwork, selling homemade butter etc It was never lots of money she earned but she used some and spend some wisely. She passed away in February and her worth in cash was over a million rands- she was an example to me- and I think it is easier to bank with Capitec and start saving those cents and rands than raising chickens…….
Greeting to you all.Yesterday was Potji day. The usual discussions about rugby – cricket – soccer and then some how the subject changed to finance.The OLD MAN banks with FNB.This old man banks with ABSA. Then some one was with Ned another with Std. Nobody, when I asked, was with Capitec.It was a case of capi who.I have 3 accounts with ABSA.One with STD.
Unless someone can come up with a good reason why not I shall be transfering to CAPITEC this month. I shall also get the others who where with me to look up Capitec and ask a few questions. Thank you all for your input.Thanks to the internet, without it I would still be wondering.
Capitec is a good option, as long as you are looking for a vanilla savings account. They don’t offer home loans and market linked accounts and all that.
You can have 1 account with 3 sub accounts linked to it.
It’s cheap and the interest is higher. So far, I’m happy. I don’t often have to deposit though, if you do deposit cash or cheques often, check where your nearest branch will be because you have to do it in the branch.
Morning Dax. Went onto the capitec site and viewed some of the comments from people who wern’t happy. One was where capitec took 4 years to reimpurse money which was stolen from the account.Cannot find a comment from capitec on this. The other thing which makes me think is that the major capital invested in the business is by Riaan Stassen and leRoux. What happens when they pull out. Do we end up with another bank collapse with customers losing their savings.
Just read an article about SA’s high bank fees… http://http.persfin.co.za/index.php?fArticleId=5044542. Strangely, even though the article is titled “Switching banks is one way of addressing high charges” they only discuss the 4 ‘big’ banks (and how high ALL their fees are) and don’t even mention Capitec as an alternative!
Does Capitec offer vehicle finance?
Not yet
Just had Standard Bank help themselves to 20% of a recently banked cheque. 20%!! It’s a foreign cheque (Google), but I still don’t see how they can justify charging that steep a fee when it had already been converted to rands by the time it got to me, and didn’t require a currency calculation.
Yet another reason to do business elsewhere. Yikes.
Check this site, proven that Capitec offer best value
http://www.bizcommunity.com/Article/196/357/37190.html
I have been with Capitec for more than 5 years now, was with standard before that, and I have never regretted it. Have totuted capitec to all my friends and the ones that have moved over have never regretted it.
it is a no frills savings account, but since they have offered internet banking (for free except for low transfer costs (r1.50 per transaction)) it has been great. In one of the extra accounts, I put in R7000 and got R66 per month.
Some things have changed, and though it doesn’t make me regret my decsion, it should be noted.
Interest on credit has dropped. see table below and service charges increased. However, they still blow all other banks out of the water. Now they just have to work on those long lines, though with internet, I don’t have to worry about that anymore
Rates and fees
Daily Savings Savings Plan
Account Flexible Term Fixed Term
R0 – R10 000 7.00% 7.00% 7.50%
R10 000 – R25 000 6.75% 6.75% 8.00%
R25 000 – R100 000 6.75% 6.75% 8.25%
R100 000 – R2 000 000 6.75% 6.75% 8.50%
Monthly administration fee 4.00 4.00 FREE
Effective 26 July 2009
Standard bank is shocking! The last two months have been a nightmare with them to say the least – and before that a disaster waiting to happen!
I have a cheque account and have noticed that the last 2 months +/-R4000.00 has gone missing out of my standard bank account – as a result my account has gone into overdraft. What amazes me is that i did not request an overdraft facility – infact i declined one when a sales rep contacted me. I have had this account for over 6 years and never once have i been in a negative balance. When calling the bank they had no explanation for this instead they told me that I didnt have an overdraft facility. However when I check my statement I get charged every month a 19% intrest on the overdraft which apparently does not exsists. When I contact the bank again I get told that I get charged a monthly fee for not having an overdraft facility. I cant win!
To make matters worse – The last 5 months I have been charged over R1000 for banking charges and internet banking which for 4 months did not work at all. This service is designed to make life easier – yet Everymonth i find myself in this stupid bank fighting a lost cause!
I’ve never heard of Capitec untill their recent add campaign and decided to do some research on them (that’s how I came across this site).
OMG!!!! Just like everything else in South Africa (internet, cell charges, etc.) bank costs are absolutely rediculous!!!!
Obviously Capitec is the best way to go, and from what I’ve read here, they seem to be stable and growing even stronger.
Capitec has proven that they can dramatically cut bank charges and still be successfull. If anything, this proves how the so called “Big Banks” of S.A. have been exploiting its customers for decades. In my opinion, they are nothing more than crooks, stealing our hard earned money! It’s CRIMINAL!!!
Thank you to Dax for posting this subject. I know I’ll be changing banks and advising friends to do the same
Hi Dax – Standard Bank has a lot of rip-off options, but after carefully studying their spreadsheet I have found an option that actually has decent value.
My choice is the Standard Bank Classic Checque account with fixed monthly fee of R87pm, which is giving me internet banking, 8 withdrawals, several free debit orders (using 3), and 30 free EFTs (using about 8/month). Although Capitec per-transaction fees are the lowest, I don’t think they have a package deal like that.
That is an improvement, looks like Capitec is shaking things up. But they still pay you no interest on your current account. I earn more interest on the little bit of funds in my current account than the fees I pay. That’s how I like it.
ps. your free withdrawals are only at Standard Bank ATMs.
Dear Graham
8 withdrawals @ the shops with Capitec = R1.20 times 8 = R9.60. or at the bank = R2.20 * 8 = R17.60
10 EFTs would cost you R11.50
5 Debit orders would cost = R11
R4 monthly admin fee
Therefore on what you actually use you would pay R27.10. or R35.10
Therefore Capitec would save you R67 per month plus you get a huge interest rate (6.75 % compunded monthly is the minimum). Therefore every year you would save R804 in interest charges alone. Then you still get to add your savings compounded monthly.
Plus statements are free when you have internet and internet banking is also free (ie no monthly charge, but you do pay per transaction).
Why go for a package when you can score much higher on individual service charges.
Hi everyone
I just wanted to thank you all for all the very helpful information.
I’ve been without permanent work for most of the year, so I’ve been trying to cut costs where possible.
I’ve been with Standard Bank for almost 16 years and in those years I never gotten as much as 1c back from them.
They have only ever taken from me, like last month where they charged me almost R300 for late charges on my credit card cos I couldnt pay it intime, and they couldnt have been bothered when I told them I currently didnt have an income.
I’ve been thinking about moving over to Capitec and I’m very glad to see they have alot of happy customers.
I will be doing my ove very very soon.
Thanks again for the helpful info
Well! Talk about an eye-catching tag line. I’ve been thinking about switching from Standard for a while now and your blog came up (as it did for several others judging from the comments above) when I did a search for Capitec. I opened your site before the Capitec site and you made my mind up for me before I did any reading on their site – Dax, they should start paying you commission for each convert. In the last two months Standard bank employees have cost me R200.00 because of their incompetence and, in spite of having the R87.00 fixed charge package, today I was chaged R3.00 for sending a confirmation of payment via fax! Laughable when you consider that for an extra R1.00 that would equal the Capitec monthly administration fee. I work in Central Durban and there’s a Capitec right around the corner from my office block in West Street – on the right just before SARS. As soon as I get home this evening I’m going to put my latest utility account in my bag and tomorrow, during my lunch hour, I do believe that I will be taking a liesurly stroll to open an account with them. YeeeeeHaaaaa!
im also with standard and charges are crazy.
i did contact capitec but they said they have no business accounts.
Thank you for your interest in Capitec Bank.
Capitec Bank offers a savings account facility known as the Global One Banking Facility. The Global One Facility is a unique product offering that is designed for an individual.
At present we do not have a product designed to suit the needs of a business / corporate client.
However, we do offer Employer Salary Transfer Facility (ESTF) which allows you to make cost-effective weekly or monthly bulk payments. You can also settle the payroll from any location because it is an Internet-based product, offering convenience like never before.
Should you have any further queries in this regard, please contact Commercial Client Care on 0860 667706.
Sally, glad to hear you’re making the move. I’m sure you’ll be happy.
Fil, you are correct, they are not business oriented at the moment. I’m sure that will come with time. I have to deposit a cheque from Google, so am waiting to see how they handle that as the branch was not able to do it.
The reality is, Capitec is great as long as you have basic/normal transactional needs. It won’t suit everyone and if you have complicated banking needs, then paying the extra fees to one of the other banks is probably worth it.
Having said that, I have created accounts linked to my account for my various businesses, because I really just need to receive payments and make payments for which Capitec is quite suitable.
How about an update on Capitec’s service ?
So I put Capitec to the test recently. I received a cheque from Google and it is not from a South African bank so the cheque reader at the branch could not read it.
The branch manager was meant to follow up and call me during the week but didn’t (he said he was waiting for head office to get back to him). So I called the call centre. They were not very helpful so I emailed Sumarie from Capitec who left one of the messages above.
She put me in contact with the correct person and I went and deposited the cheque the next day. All sorted and no extra charges.
I was happy but I hope that everyone else that has such difficulties can get them resolved so easily.
I paid R110 000.00 into my bond account from Capitec. Was charged R1.20 in fees plus R2 for the fax confirmation that I sent, which also allows you a full cover page where you can write a whole essay to the beneficiary.
R3.20 for such a transaction, where else could I get that???
Still happy with them, after 5 years now. Not as great savings, but still 8.5 compound interests is better than anywhere else.
Was a bit disappointed when I tried to do a debit order purchase of R15 000 and it wouldn’t go through, i have since found that there is a limit of R10 000.00 for debit order purchases.
Hi Guys,
i am also sick of all the charges from all these bull Sh!t banks. I finally have some big capital to invest, does any body know if Capitec can beat an intrest rate of 6.85 on a fixed term investment acc, that is the rate that ABSA offord me.
i use to bank with Nedbank for years but they totaly ripped me of. Now i have about R300.000.00 to invest please advise me if i open a fix Term acc with Capitec what the % is that i can earn on that capital???
Capitec’s normal accouunt offers 6.25% interest and you have full access to all your monies. This for a R4 per month administration fee. For a fixed terms you get 8.5% interest, and it is for 6 to 12 months. Check to ensure that it is compound interest. you must chose the re-invest option otherwise you will earn simple interest.
What I am not sure about, is whether or not other banks compound the interest daily as Capitec compounds the interest on a monthly basis on their fixed interest. Which is different from the savings account when I first took it out.
this may be something to look into as it makes a vast difference to your interest earned.
Thank you for clearing that for me Justin, i will most def go to the West str branch on Saturday to get all the details. i have burned my hands b4 with Nedbank so this time round i am doing my home work.
if they can offer me an intrest rate of 8.5% that is geat do you know whether Capitec bank has got an even higher intrest rate on another investment.
Cause ABSA offored me an intrist rate of 8.25% on their 90/10 acc.
CAPITEC are my heroes. I didn’t believe it when they claimed you could use their debit card to draw money at any Maestro friendly ATM in the world without any prior arrangements. In October when I visited London, I was filled with glee when I could draw at the ATM as much as 250 Pounds per day using the Capitec debit card without speaking to anyone first. This was ofcourse after the Standard Bank Travel Wallet was a total stress.
I just changed from Standard Bank
Standard Bank suck big time
I just phoned Capitec today to find the nearest branch, i just about had enough with Standard bank. Been with them for years but they never made it simpler better or faster for me,just grief.fees are ridiculous.
hope i’m making the right move though.
We think you’re making the right move, but be sure to pop back and let us know how it goes.
Hi Dax
Have been with Capitec for more than a year now. Am vey happy. Thier banking hours are also great. Open at 8.00am and close at 5.00pm. Saturday they are open until 1.00pm. I think it is great plus all the other great deals.