Capitec's Interest Rates

A

alkit

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Hi,

I just opened up my own Capitec bank account.
I'm having a bit of trouble understanding how their interest rates work. Was hoping someone could clarify this for me:
http://www.capitecbank.co.za/personal-banking/save/rates

It seems like up to R9999, you get 6%
Over R9999, it DROPS to 4.75%.

Now correct me if I'm wrong - but surely banks encourage you to put MORE money into your account. With Capitec, the interest rate goes LOWER if you have more money.
Can anyone figure out why this is so? I'm struggling to understand it?

PS - Just a side note: How do PnP withdrawals work? Do I need to get groceries at the same time, or could I literally just walk up to a till, give them my card and ask for cash?
 
PS - Just a side note: How do PnP withdrawals work? Do I need to get groceries at the same time, or could I literally just walk up to a till, give them my card and ask for cash?
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give them my card and ask for cash?
yes. No need to purchase.
 
I was looking to open an account with them and saw the same thing....also wondering if I'm missing something...doesnt make sense...
 
It sort of does, they are looking for people to open current accounts with them, the masses in south africa dont earn more than 10k a month. Its one way to gain a lot of people who don't earn a lot of money, students and even some people who do earn more but don't keep a lot of money in their current account and transfer there other monies to fixed deposit etc.. Oh and another thing, most current accounts in other banks you earn NOTHING.. So this is a pull either way, the guys that do earn more than 10k get nailed with bank charges because i can assume they have a unlimited transaction package or what ever, so another draw card from them is the lower interest but also the cheaper bank charges..

Not sure if my reasoning makes sense but i also had a think about it and i came to that conclusion..
 
Because they won't be able to pay 6% interest on billions and billions of rands, as those would / could be money market rates.
 
you can have up to 4 savings account linked to 1 global account. (one card) so split the cash. Having your salary over 10k paid into it is a problem tho, but still you get way more out than other banks, seeing as their charges is less.
 
Capitec has been brilliant for me so far. I have had more interest paid out in this account in the last 6 months of having it than i have received in all the years i have had another bank's account.
 
The Philosopher said:
Capitec has been brilliant for me so far. I have had more interest paid out in this account in the last 6 months of having it than i have received in all the years i have had another bank's account.
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Agreed.

I was with ABSA for years and years and their credit interest rate on savings account was very little ...

What I found disgusting about them was that they could not be bothered less with me, unless and until I had large amounts deposited into my account on two or three occasions ... then they suddenly contacted me and said that one of their advisors would like to meet with me to discuss investment options.

They knew very well that if I opened other accounts with them, or used their investment tools, they would be able to debit more costs.

Pigs.
 
Capitec makes a lot sense, pity that it's associated with low class, which I really don't give a hoot about.
 
I have 3 simple rules when it comes to finances:

1. If it's too good to be true, it probably is, therefore avoid it.
2. If it's complicated and it doesnt make sense, avoid it.
3. If they tell you that you get more out of the deal than they do, walk away. There is a catch.
 
CalmD said:
Capitec makes a lot sense, pity that it's associated with low class, which I really don't give a hoot about.
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Low class? I don't know about that.

I also think that if someone prefers to pay sky-high fees just in order to be fancy and "keep up with the Joneses", they have no business complaining about it.

zippy said:
I have 3 simple rules when it comes to finances:

1. If it's too good to be true, it probably is, therefore avoid it.
2. If it's complicated and it doesnt make sense, avoid it.
3. If they tell you that you get more out of the deal than they do, walk away. There is a catch.
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Capitec is neither of the three IMO.
 
zippy said:
I have 3 simple rules when it comes to finances:

1. If it's too good to be true, it probably is, therefore avoid it.
2. If it's complicated and it doesnt make sense, avoid it.
3. If they tell you that you get more out of the deal than they do, walk away. There is a catch.
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Doesn't apply here - they pay the interest they do because on the flip side of the coin they charge equally silly interest rates. Great if you're a saver...
 
I'm with ABSA and my fees are pretty high. Probably around R200pm. I withdraw from an ATM maybe 3-4 times a month and make 4-5 internet transfers and that comes to around R200. ATM's are easy to find though. How do you draw cash from Capitec? Don't think I've even come across a Capitec ATM.
 
You don't need an ATM, Read the threads, I did say that you could draw cash at any Pick n Pay, and it is not necessary to make a purchase. AND it is at NO charge whereas there is a charge when withdrawing from an ATM. The ATM's are normally in the branch. Therefore available during office hours only. Quite a few PnP are open 24/7.
 
SaiyanZ said:
I'm with ABSA and my fees are pretty high. Probably around R200pm. I withdraw from an ATM maybe 3-4 times a month and make 4-5 internet transfers and that comes to around R200. ATM's are easy to find though. How do you draw cash from Capitec? Don't think I've even come across a Capitec ATM.
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I withdraw at any banks ATM with my Capitec card for a fixed R7 fee for any amount
 
psheldon said:
You don't need an ATM, Read the threads, I did say that you could draw cash at any Pick n Pay, and it is not necessary to make a purchase. AND it is at NO charge whereas there is a charge when withdrawing from an ATM. The ATM's are normally in the branch. Therefore available during office hours only. Quite a few PnP are open 24/7.
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Incorrect.

There is a R1 cost attached to the withdrawal.
 
SaiyanZ said:
I'm with ABSA and my fees are pretty high. Probably around R200pm. I withdraw from an ATM maybe 3-4 times a month and make 4-5 internet transfers and that comes to around R200. ATM's are easy to find though. How do you draw cash from Capitec? Don't think I've even come across a Capitec ATM.
Click to expand...

If you move over to Capitec you can still withdraw from Absa or FNB or Standard bank or Nedbank and you'll still pay less.

Withdrawing from another banks ATM costs R7 with capitec. EFT's cost R2.75. There is also a monthly fee of R4.50.

So your total would be roughly:
R7 * 4 = R28.00
R2.75 * 5 = R13.75
R4.50
R0.40 * 9 sms notifications = R3.60

Total = R49.85

Then theres a once off fee of something like R125 for the one time pin generator for online banking. All in all you could be saving R150 per month and have a much larger choice of ATM's to withdraw from ;)
 
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