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- Bank Zero has just announced its new rates.
- While many of the bank’s services are free, they will still charge you for some services, such as proof of payment SMS.
- It should be cheaper than standard accounts at big banks, but it doesn’t compare as well to another digital-only upstart, TymeBank.
- For more articles, go to www.BusinessInsider.co.za.
Bank Zero has long insisted that there is a clue in its name when it comes to fees.
The company has now published its new prices and a long list of services will cost nothing:
But “zero” may be exaggerating a bit, as it will charge fees for other services:
READ | Bank Zero is already up and running for some customers, who are using their new proprietary cards.
So how do your fees compare to other bank accounts?
Bank Zero should be cheaper than the normal transactional account of the big banks. It does not charge monthly account fees and, for example, paying a debit order through the Bank Zero account costs nothing, while in Absa’s Flexi Account, an external debit order is priced at R10 each .
But Bank Zero’s pricing offering doesn’t seem all that spectacular compared to TymeBank, its closest digital competitor among the crop of new banks.
TymeBank’s EveryDay account also does not charge a monthly fee on accounts and, like Bank Zero, does not charge for card payments.
Bank Zero will not charge you to transfer money to someone at another bank, nor will it charge you for an external debit order, whereas TymeBank charges each R2 for both types of transactions.
But TymeBank is cheaper when it comes to withdrawing cash, especially at a Pick n Pay or Boxer till, where it won’t cost you a penny. At other retailers (Spar, Checkers, and Shoprite), withdrawing cash will cost you R2 per transaction, while Bank Zero charges R2 at all of these retailers (including Pick n Pay).
For ATM withdrawals, TymeBank charges R8 for R1,000, compared to R9 at Bank Zero.
Also, at TymeBank a proof of payment by SMS costs nothing, while at Bank Zero, it will cost R1.50 (confirmation by email is free).
TymeBank offers 12-month bank statements (via banking app, online banking, and email) for free, while at Bank Zero only statements from the last three months are free. The oldest excerpts cost R10 each.
Dispute or stop a debit order costs R8 at Bank Zero. At TymeBank it is free, if it is within 40 days. Older disputes will cost R40.
BankZero’s fees are in line with Capitec’s, which has a monthly administrative fee of R5 on your debit card account, but offers cash withdrawals for a lower transaction of R1.20 on Pick n Pay, Shoprite, Checkers and Boxer.
However, unlike Bank Zero, Capitec charges customers for digital payments to other bank accounts (R1) and debit orders (R3.50).
Interestingly, Bank Zero’s fee structure does not provide for cash deposits and will also penalize you with a charge of R5 per month if there are no transactions for more than six months on a checking account.
While your first TymeBank debit card is free, the personalized Bank Zero card, when picked up at a Clicks store, will cost R79. If you want it delivered to a postal address in major urban areas in South Africa, it will cost R139. For regional areas, it will cost R179.
But Bank Zero says their cards are special: They contain proprietary anti-fraud technology, and you will have a card number for life.
READ | Here’s how Bank Zero’s proprietary debit cards work and why your card number will never have to change
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