Capitec - Yay or Nay?

[techead]

Why shouldn't I move everything I have to Capitec from Standard Bank?
4.50 a month for fees while SB are shafting me badly...

Thoughts?

 

[supersunbird]

Which one means yes?

Yay

Obviously there is also transaction fees for transfers and debit orders, but at least a bit is covered by the interest you earn. And swipes are free and ATM withdrawals cheaper than your SB ones (at SB ATMs nogal).

 

[MKFrost]

I'm with Capitec. Was with FNB. Avg monthly fees dropped from R300/400 to around R20. Yes doing less now but at very least decreased by more than 50%.

Able to walk into a bank just before 5 or even on Sundays.

Bank is open at 8am, no waiting for 9 or 9:30.

Getting almost 3 times the interest I got at FNB.

 

[now05ster]

Yay. Not being charged exorbitant bank charges now and interest is higher. Also branches open till late.

 

[supersunbird]

Only negative I experience is no airtime buying over their website, so still have a SB saving account open that costs R8 pm which I put money into and use for airtime buying when needed.

 

[Munch]

Switched around 2 years ago. Never looked back. Fees are below R50 but easily covered by the interest earned and extra. ATM withdraws at an ABSA atm cost me less than half what it cost me when I was with ABSA. But the advantage is I have so much more ATM's to choose from as I just go to any banks now. If I really want to save even more I can go to one of the Capitec ones or save even more buy using a supermarket till points.

I could give a 100 reasons why you should but you asked why you should not. I really have little to complain about. I guess if this style of banking is not for you such as needed a bank where you can do over the counter cash withdraws. They really simplify banking and maybe some people prefer a more complex system. However the simple banking style suits all my needs.

 

[KalMaverick]

Only negative I experience is no airtime buying over their website, so still have a SB saving account open that costs R8 pm which I put money into and use for airtime buying when needed.

Why not use cellphone banking for airtime?

Anyway to answer the OPs question, Capitec is awesome, change to it and you'll see.

 

[techead]

Hmmm... I been with SB and currently on their Prestige package for which I'm not too impressed with when I compare it to Capitec

No issues with shopping online? International travel swiping etc etc? I seem to recall ready a thread about issues along those lines?

 

[Munch]

No issues with shopping online? International travel swiping etc etc? I seem to recall ready a thread about issues along those lines?

They changed their cards to mastercard debit cards. I have not used the card online as I use a kulula credit card for their rewards. Since I have never used a debit card online I do not know how well it's supported however maybe the issues you read were about the old cards before they were mastercard.

 

[Kidkaroo]

Moved from St(r)andard a year ago, really happy with Capitec. Including their Debit cards which work for internet purchases and paypal verification.

 

[BloodBurner9000]

Am incredibly happy with them, their service, fees, "rewards" (interest) and availability.

Overseas worked fine, swipes are free, once didn't work at paul restaurant at Charles du Gaulle airport.

Saves hundreds each month. I am also going with the hybrid approach. Use them for transactions and keep the absa account open for investments.

No private banking service, and imo not necessary at all.

 

[Rhino]

Capitec are WAY more expensive in the long run - IF you use them as any type of debit source. IF they are only used for credit balances you cannot really beat them.

Take a 230k loan (the maximum offered)over 48 months they offer an average of 25.5 to 30% interest. Std bank averages 13% on the same terms. Not to mention the initiation fee of 1400 with capitec and around 279 with Std. Divide that service fee and extra interest over the term and you will be paying more than a Std Bank fee.

The lack of available ATMS and purchase points are also a negative when you work out how much you are paying per transaction.

They are not flexible with credit limits or overdraft limits. Once you have an approved credit facility you cant just call up and increase it. STD bank can do it both online and over the phone and make you an on the spot offer.

They have no loyalty program on their card.

Eventually when you want to finance a house or a car, Capitec do not offer home loans OR Car finance so you would have to go to a 3rd party lender or another bank that you would not bank with who would then charge you higher fees based on this so you are back a square one.

On this point I may be wrong, but as far as I know they only report to 1 credit bureau where Std does all 3.

For my needs there is no way to beat Standard Bank - but that's me. For the next person it may be Capitec. Just make sure you have your eyes open as to what you are getting involved with.

And if anyone is going to ask, yes, a direct family member has capitec and has for some years now.

 

[ld13]

Take a 230k loan (the maximum offered)over 48 months they offer an average of 25.5 to 30% interest. Std bank averages 13% on the same terms.
The lack of available ATMS and purchase points are also a negative when you work out how much you are paying per transaction.
They have no loyalty program on their card.

I do not personally know anyone that was stupid enough to take out a loan with Capitec. They are fine for anything else.

I cannot recall when last I used an ATM. With capitec you can withdraw $$ at eg any PnP/shoprite etc so that is not a negative point at all. Heck, you can use any SASWITCH ATM in any case with reasonable fees imo.

Why do you need a Loyalty program? Who do you think pays for the rewards with these programs?

 

[supersunbird]

Capitec are WAY more expensive in the long run - IF you use them as any type of debit source. IF they are only used for credit balances you cannot really beat them.

Take a 230k loan (the maximum offered)over 48 months they offer an average of 25.5 to 30% interest. Std bank averages 13% on the same terms. Not to mention the initiation fee of 1400 with capitec and around 279 with Std. Divide that service fee and extra interest over the term and you will be paying more than a Std Bank fee.

The lack of available ATMS and purchase points are also a negative when you work out how much you are paying per transaction.

They are not flexible with credit limits or overdraft limits. Once you have an approved credit facility you cant just call up and increase it. STD bank can do it both online and over the phone and make you an on the spot offer.

They have no loyalty program on their card.

Eventually when you want to finance a house or a car, Capitec do not offer home loans OR Car finance so you would have to go to a 3rd party lender or another bank that you would not bank with who would then charge you higher fees based on this so you are back a square one.

On this point I may be wrong, but as far as I know they only report to 1 credit bureau where Std does all 3.

For my needs there is no way to beat Standard Bank - but that's me. For the next person it may be Capitec. Just make sure you have your eyes open as to what you are getting involved with.

And if anyone is going to ask, yes, a direct family member has capitec and has for some years now.

I guess you mean the first part the other way around, they are bad as a credit source and good for transactional banking/debit orders. Did you know that for any bounced debit order its only R4 (you get bastard companies that try to run debit orders early, over December especially).

Initiation fees are maximum R1140 by law and almost all providers push it to that, but are allowed to make it less or not charge it.

Every other banks ATM is a Capitec ATM, since withdrawals cost only R7 no matter the amount drawn. PnP/Shoprite/Checkers/Boxer are withdrawal points too (R1). Don't know you mean by purchase points.

Good interest rates, good business hours and good prices is all that's required for my loyalty.

People often moan about how their bank gives them bad interest rates, especially on home loans. I am happy with my 6.9% home loan interest rate at SA Homeloans and 10% on my Ford Figo from ABSA, and there no other fees they can charge you more for except the capped R57 monthly fee they all charge.

The short loan I had last year shows on Transunion, Experian and XDS. And there are around 8 or 10 Credit Bureaus, we just mostly never hear of them, either specialised or small or in a specific sector.

Just some facts and opinions . Capitec is perfect for me (except the airtime thing and I don't want to do cellphone banking).

 

[Rhino]

I guess you mean the first part the other way around, they are bad as a credit source and good for transactional banking/debit orders. Did you know that for any bounced debit order its only R4 (you get bastard companies that try to run debit orders early, over December especially).

Correct, Sorry I am on another timezone so a little tired.

Initiation fees are maximum R1140 by law and almost all providers push it to that, but are allowed to make it less or not charge it.

That's the advantage of having existing account not having to pay the full change.

Every other banks ATM is a Capitec ATM, since withdrawals cost only R7 no matter the amount drawn. PnP/Shoprite/Checkers/Boxer are withdrawal points too (R1). Don't know you mean by purchase points.

Correct, but withdraw 10 times in a month at R7 you have already exceed the opposite on set monthly charge. By till point it has to be a Mastercard merchant. If the machine is registered as a visa point (even though it accepts mastercard) you will be charged.

Good interest rates, good business hours and good prices is all that's required for my loyalty.

Can't argue on the rates !

People often moan about how their bank gives them bad interest rates, especially on home loans. I am happy with my 6.9% home loan interest rate at SA Homeloans and 10% on my Ford Figo from ABSA, and there no other fees they can charge you more for except the capped R57 monthly fee they all charge.

2xR57 +4.50 and you are paying the same as a all in one account. I my case I have 3 homeloans, 2 car finance, and 2 large asset finances so it makes sense for me. But thats why I said, not for everyone.

The short loan I had last year shows on Transunion, Experian and XDS. And there are around 8 or 10 Credit Bureaus, we just mostly never hear of them, either specialised or small or in a specific sector.

Ah, nice ! Glad they are doing that now.

Just some facts and opinions . Capitec is perfect for me (except the airtime thing and I don't want to do cellphone banking).

Agreed. For my family member it's perfect and has been for some time. Only now that they are starting a family and need car, house and overdraft things are changing.

 

[Rhino]

I do not personally know anyone that was stupid enough to take out a loan with Capitec. They are fine for anything else.

I cannot recall when last I used an ATM. With capitec you can withdraw $$ at eg any PnP/shoprite etc so that is not a negative point at all. Heck, you can use any SASWITCH ATM in any case with reasonable fees imo.

Why do you need a Loyalty program? Who do you think pays for the rewards with these programs?

Sadly I know 2 muppets who have taken the load from them. When they signed up it was sold to them as an overdraft facility, however after the fact it sucked for them. One has just about paid it off, but the other is in for the long haul at 28% I think it was.

Lets say I shop at Spar and live in a rural area without a branch or ATM because my company transferred me after I opened my account. I am also scared to carry cash on me, so I draw as I need, maybe 3 times a week. - Not much choice then do I.

As for loyalty - I spend around R11500 on petrol each month. Both my cars take 80L. My parents - who have subsidiary cards at no cost - have 70l each. That mean to fill up all the cars is 300L. I collect R1 per L so thats R300 or 3000 reward points I get back. That happens sometimes 3 or 4 times a month.

I also get 10% back at woolworths, so I can get woolworths quality for a Spar price. Or I can shop at both and get 10% back to spend online. And this costs me R20 per month. That's why a loyalty program....

 

[Rhino]

I should also mention that I do not use any of the rewards points but donate them to charity.

 

[Rhino]

Hmmm... I been with SB and currently on their Prestige package for which I'm not too impressed with when I compare it to Capitec

No issues with shopping online? International travel swiping etc etc? I seem to recall ready a thread about issues along those lines?

Supplementary cards can’t be used internationally

 

[10i]

Only problem I am having is getting my Paypal working...

Everything else is wonderful.

 

[noxibox]

Not for me. They work out more expensive, and their internet banking interface is very primitive. It very much depends on your banking patterns and what you require. For many people they do work out much cheaper.