Capitec - Yay or Nay?

[Drunkard #1]

I opened a Capitec account on Thursday. Their systems work well, but a few things bug me.

Their fine print seems to try to circumvent the POPI Act and CPA. I've emailed them and I'm waiting for a response regarding this.

Their debit card seems to have no buyer protection for fraudulent transactions (physical or online), like credit cards do. I'm not sure about details, but with the level of fraud in this country, I'm very concerned.

On the plus side, they're cheap and seem efficient. I also like their interest rate, which is (IIRC) the same as ABSA's best instant access accounts.

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....

Ok, so ucount sucks. My father's with Standard Private Banking, and spends over half a mil a year on his card, and yet he'll barely earn enough rewards to pay for the program's R20/month fee. Their tier structure makes sure of this. Their Avios reward program at least earned him a few hundred thousand Avios. And your R1/l reward for fuel, that ended at the end of December.

 

[Rhino]

Ok, so ucount sucks. My father's with Standard Private Banking, and spends over half a mil a year on his card, and yet he'll barely earn enough rewards to pay for the program's R20/month fee. Their tier structure makes sure of this. Their Avios reward program at least earned him a few hundred thousand Avios. And your R1/l reward for fuel, that ended at the end of December.

Ucount is not about how much you send on the card. Its about the amount of products from the bank you use.

https://ucount.standardbank.co.za/content/my-rewards/my-tiering/

If all your accounts are with Std bank its really easy.

And for the record: When using your qualifying Standard Bank personal debit, credit or cheque card to pay for your fuel purchase at participating Caltex forecourts from 16 January to 15 July 2014.

 

[MKFrost]

Ucount is not about how much you send on the card. Its about the amount of products from the bank you use.

And that is where the problem lies for me. I also have a SB account do not qualify for UCount. But even if I had it would not work for me as I:

* Do not have my will with them and will never let a bank preside over my estate,
* Do not deposit cash/cheques at ATM's
* Will never buy foreign currency through a bank,
* Do not have a home loan,
* Do not have revolving credit facilities,
* Do not do asset/vehicle finance through banks,
* Do not want their internal marketing

So I will never pass tier 2 unless I go dumb myself into their debt. I will rather see a scheme where I'm rewarded for what I spend/save and not for how much they earned through me. Don't get me wrong, UCount works for many but its positioned for people who does everything through SB, if not then it will not work for you.

 

[Rhino]

And that is where the problem lies for me. I also have a SB account do not qualify for UCount. But even if I had it would not work for me as I:

* Do not have my will with them and will never let a bank preside over my estate,
* Do not deposit cash/cheques at ATM's
* Will never buy foreign currency through a bank,
* Do not have a home loan,
* Do not have revolving credit facilities,
* Do not do asset/vehicle finance through banks,
* Do not want their internal marketing

So I will never pass tier 2 unless I go dumb myself into their debt. I will rather see a scheme where I'm rewarded for what I spend/save and not for how much they earned through me. Don't get me wrong, UCount works for many but its positioned for people who does everything through SB, if not then it will not work for you.

Agreed 100% - For sure it is now for everyone. I am just saying that you can work the system to your advantage at no extra cost if you already use the services.

Just a note regarding the will - They will draw it up and safeguard it but they do not necessarily need to be the executor of it. It would be the same as having it drawn up by an attorney and kept in their safe.

 

[mike6870]

Yay

 

[Chevron]

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.

Just want to comment on what you said with ATMs. Their withdrawal fees are are so low, that it's cheaper to draw cash from an ABSA ATM using a Capitec account, than if you had an ABSA account.

 

[Rhino]

Just want to comment on what you said with ATMs. Their withdrawal fees are are so low, that it's cheaper to draw cash from an ABSA ATM using a Capitec account, than if you had an ABSA account.

How do you get that ? Cash withdrawal from Capitec account from another banks ATM is R7.00 and Absa from it's own is R4.20........

 

[Rhino]

Compare http://www.absa.co.za/deployedfiles...es/Pricing Brochure/2014 Pricing Brochure.pdf with https://www.capitecbank.co.za/global-one/transact/fees

 

[Brieuse]

With standard bank, I just pop them an email when I need something done, I don't think capitec allows that.

 

[goldmembr]

I would go to capitec but all my debit orders will be a hassle

 

[Gtx Gaming]

No home loan or car finance offer , i would say NO.

Switch to fnb , its just better.

I was with capitec , my monthly fees came to R60 because of debit orders etc.( then i did not even eft yet)

With fnb i only pay R135 but then i get 4mps uncapped account also included, which i can sell or use.
Then all my eft's is free and debit orders.
I do about 10 eft's a month so glad it is free.

 

[supersunbird]

No home loan or car finance offer , i would say NO.

Switch to fnb , its just better.

I was with capitec , my monthly fees came to R60 because of debit orders etc.( then i did not even eft yet)

With fnb i only pay R135 but then i get 4mps uncapped account also included, which i can sell or use.
Then all my eft's is free and debit orders.
I do about 10 eft's a month so glad it is free.

20 debit orders at R3 = R60 (busy bee )
10 EFTs at R1.50 = R15
4 ATM withdrawals at R7 = R28
Monthly fee at R4.50

R107.50pm then minus whatever you get as interest.

 

[ColinR]

(except the airtime thing and I don't want to do cellphone banking).

Have you tried www.powertime.co.za - you can use your debit card to purchase airtime.

 

[Tinuva]

20 debit orders !!! bloody hell.

 

[supersunbird]

Have you tried www.powertime.co.za - you can use your debit card to purchase airtime.

Thanks, but I still have the OLD debit card (cant be used online) and hesitant to get the new one where there can be delays in funds being taken off (ABSA you bastards, you were the cause). Maybe I can use my credit card though.

 

[nakedpeanut]

Capitec is a growing bank. They catching up to the other bigger banks (albeit still a long way to go).

You should just weight up what's important to you. I'm with FNB and love their online banking. Soo much better than Standard Banks!
Fees are palatable (still think they a bit high) but for ease of use and mobile integration I stick with FNB.

 

[techead]

thank you to all for the information. I appreciate it very much.

One thing Im still wondering about. What is the story about some stores/shops not accepting a card WITHOUT raised numbers on the card? What's the story with that?

I noticed that all cards I have ever had have RAISED numbers. Capitec card is printed on

 

[supersunbird]

thank you to all for the information. I appreciate it very much.

One thing Im still wondering about. What is the story about some stores/shops not accepting a card WITHOUT raised numbers on the card? What's the story with that?

I noticed that all cards I have ever had have RAISED numbers. Capitec card is printed on

Have never encountered that in the 7 years of my capitec card ownership with the printed number (obviously I say savings account when asked at a paypoint)

 

[techead]

OK cool thanks

 

[Drunkard #1]

Well Capitec still hasn't replied to my email about their T&Cs, so I'm beginning to serious doubts about them, especially after reading more of their T&Cs (relating to fraudulent transactions on your card).