Banking fees – FNB vs TymeBank

TymeBank recently received its banking licence from the SARB and has started to offer digital banking service to customers.

Sandile Shabalala, CEO of TymeBank, said they aim to provide affordable and accessible banking services to all South Africans.

It will not have any brick-and-mortar branches. Instead, it will create points of presence in partnership with Pick n Pay – and will compete against well-established banks like FNB, Standard Bank, Absa, Nedbank, and Capitec.

The new bank is off to a good start. Shabalala said they signed up 1,800 clients in the first week after its soft launch.

TymeBank’s simple pricing

TymeBank has a simple pricing structure – there is no basic monthly fee and clients only pay for the services they use.

Many services are free, and the most expensive transaction is cash withdrawals at ATMs of other banks which cost R8.

“People normally don’t understand bank charges, but this is simple to understand. There are no hidden fees,” Shabalala said.

He added that clients will be able to download their mobile app for free at any of its 730 self-service kiosks, located in outlets of Pick n Pay.

The bank also pays for mobile data costs related to the smartphone app.

TymeBank vs FNB

FNB was crowned the “best digital bank” in South Africa in the 2018 Columinate SITEisfaction report which was released recently.

FNB topped both the “best mobile banking” and “best Internet banking” categories, which means it is a good benchmark for TymeBank to measure itself against.

As TymeBank has not officially launched yet – it has only soft launched – it will be unfair to compare its mobile app and service levels to that of an established bank.

It is, however, fair to compare its fees and value proposition to FNB’s eWallet eXtra account.

FNB’s eWallet eXtra is a fully digital account which can be opened and used on mobile devices – and was launched in response to new digital banks.

FNB’s eWallet eXtra is entirely mobile-based, and works through USSD systems found on all mobile phones.

The table below provides an overview of how TymeBank’s fees stack up against FNB.

TymeBank vs FNB
Service TymeBank eWallet eXtra
Monthly Fee Free Free
Withdrawals Free at Pick n Pay and Boxer stores
R2 at other major retailers
R8 per R1,000 at all ATMs
R10.95 (R20 – R1,000)
R13.95 (R1,000 – R3,000)
Deposits R4 at Pick n Pay and Boxer stores R10.95 (R20 – R1,000)
R13.95 (R1,000 – R3,000)
Payments/Send Money Free to other TymeBank accounts
R2 for payments to accounts at other banks
R10.95 (R20 – R1,000)
R13.95 (R1,000 – R3,000)
EFT: R3.75
Card Swipes Free No card available
Prepaid Not available. Electricity: R2.50
Airtime: R1 (value <R10)
Airtime: R2 (value >R10)

Now read: South Africa has a new bank – TymeDigital

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Banking fees – FNB vs TymeBank