In 2012, you can look forward not only to a new year but also to the introduction of Capitec Bank credit cards. The popularity of Capitec is increasingly growing, as both businesses and individuals take advantages of the lowest back charges in South Africa. Capitec is the youngest retail bank in South Africa having been founded in 2011. Today, it has around 3.3 million clients, with an average of 90 000 new clients joining the bank each month. There are over 400 Capitec branches around South Africa which conveniently stay open later than other major banks.
To simplify its banking solutions, Capitec uses what it known as its “Global one facility” , an all-inclusive banking solution that means you don’t have to sweat over which account type you choose. When Capitec introduces its credit card, its Global One system will still apply. The Global One account is the only transaction account offered by Capitec, which does not categorize clients in accordance with their income levels. The limitations of this account is that Capitec does not offer an overdraft facility, a cheque book, or a credit card… yet.
Capitec plans to introduce a credit card in 2012. In the meantime, however, account holders are able to link a Capitec account to a credit card provided by another bank or financial services provider. The amount owing on the credit card account can be paid via internet banking (which is a free service provided by Capitec). All you need to do is make your credit card account a beneficiary, and no matter how much money you transfer, the transaction will cost you R2.75.
In a recent survey conducted by the Solidarity Research Institute, it was found that Capitec bank offers the simplest products as well as the lowest bank charges in the country. The survey compared 5 South African Banks in terms of the costs of personal transaction accounts, comparing charges levied by the four largest retail banks (First National Bank, ABSA, Nedbank and Standard Bank) as well as Capitec Bank. Capitec was the cheapest, with the most expensive being ABSA. The second cheapest was FNB, followed by Nedbank and Standard Bank being the second most expensive. Additionally, Capitec’s fees have not been changes since 2010, whereas all four of the other banks increased their fees in 2011.
Debit card transactions with Capitec are fee, and the fees for withdrawing from ATMs are also lower than those of other banks. With free debit transactions, this also means that you can draw money from various retail stores at no charge. At a Capitec ATM, the fixed withdrawal fee is R3.75, regardless of the amount that is drawn. At another bank’s ATM the withdrawal fee is R7. In comparison, an ABSA account holder will be charged R9 to draw R500 form an ABSA ATM. This means that a Capitec account holder will be charged less at an ABSA ATM than an actual ABSA client. Capitec also has the lowest penalty fee (incurred if a debit order fails due to insufficient funds) of R3.75.
Another benefit of choosing a Capitec account is that you can earn interest on the money in your account; balances of over R10 000 will receive 4.75% interest and balances under R10 000 receive 6% interest. The interest is calculated on a daily basis and is capitalized monthly. The interest rates on Capitec current accounts are actually higher than those on savings accounts offered by other banks. The interest earned each month can be sufficient to cover all the bank charges incurred that month.
Capitec bank was also recognized at the annual Ask Africa Orange Index Awards as the overall winner, based on a six month-long survey representing the opinion of 10 000 consumers. Capitec won over almost 100 other brands spread across 18 different industries.
With all these benefits of being a Capitec bank client, many people in South Africa eagerly await the introduction of Capitec credit cards.