FNB vs Capitec – Which is the Cheapest Bank Account

What to do, what to do?

I am comparing my personal situation in term of transactions and debit orders in the table below to show you how I saved 35% monthly on banking fees with very little sacrifice. FNB does have more than one easy account but I want to compare apples with apples. Thus I chose the account with the same monthly fee as Capitec which in this case is R5-ish.

Summary of the differences between FNB and Capitec Accounts:

FNB Easy Account Capitec Account
Monthly fee R5.75 R5
Electronic Payment R3.75 R1
Cash withdrawals @ ATM R1.90 per R100/ R9 + R1.90 per R100 (bank other than FNB) R6 per R1 000/R8 per R1 000 (bank other than Capitec)
Cash withdrawals @ till (Shoprite/ PnP) R1.60 R1
External Debit Orders R3.75 R3.50
Prepaid Airtime/Electricity Purchases via cellphone/online Airtime: R1 if you buy < R10
R2 if you buy >R10
Electricity: R2.50
Declined Point of Sale (Insufficient funds) R8.50

Let’s take my situation for example:

FNB Easy Account Capitec Account
1 x Debit order> R3.75 R3.50
10 x Electronic Transactions R37.5 R10
3 x Cash Withdrawals @ till R4.80 R3
TOTAL R46.05 R16.50

That means I save R29.55 per month and R354.60 per year. So, one lucky family member is getting a decent Christmas present this year!

Let’s investigate some factors to take into account (pun intended) when choosing the most economic bank to put your money.

1. The family’s bank

If you do a lot of transfers to family members and you are all at the same bank you must remember that if you change your bank account, they might wait a day or so to receive the money and it wouldn’t show in their accounts immediately as in the past.

2. Destination

Choose a bank that is easily accessible and located near to your residence. This is especially applicable to people living in rural areas. It can cause chaos if you need to go to your bank urgently and the mileage between you and the bank makes it impossible. Also, if you are traveling a lot you need to choose a bank with a wide distribution of ATM’s that is easy to find in different locations.

3. Lifestyle

Some banks offer certain cashback deals if you adhere to their requirements like for instance FNB’s e-bucks system. If you get your motivation to save money by joining a loyalty program, then do find a bank that gives you a decent return on your efforts.

According to the South African Bank Association, you need the following to open a new account:

  • A valid South African ID
  • Proof of residence
  • At least 3 months’ payslips
  • A minimum deposit of R50

Good luck with your search! I am opening a Capitec account soon.

May you be blessed with less,

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