Nedbank announces pricing increase

Says the average increase remained below or in line with inflation.

Johannesburg, Nov 17 (I-Net Bridge) - Nedbank (NED) on Thursday announced its annual pricing increase that will become effective from 1 January 2012, adding that the average increase remained below or in line with inflation.

Maintaining its focus on continuing to offer great value banking, Nedbank said it understands that simplicity; affordability and transparency were the main attributes customers look for in a bank.

"Our commitment to continue making banking accessible for all in South Africa requires that we provide innovative products and services that suit the needs of our clients at every stage of their lives. As such we continue to simplify our product offering and pricing structure," said Anton de Wet, Managing Executive of Personal Banking and Client Value Management at Nedbank.

The bank's pricing review over the past years has seen its fees reduced, simplified and aligned to ensure affordability and more importantly allow clients to understand what they are paying for.

De Wet stressed that several services remain free, some fees have remained unchanged, while others have been increased below or in line with inflation.
Relatively higher increases have, once again, been limited to traditional banking channels and cash handling where input costs - such as security, transport, wages and insurance - have gone up significantly.

De Wet said that keeping increases in line with inflation has been achieved despite staffing and cash handling costs rising by 8.3% and 34.2% in 2011. We are mindful of the impact of increases of other input cost of daily necessities such as food, fuel, transport and electricity with average rises of 17.2% and 23.5% in the eight months to the end of August for electricity and petrol respectively.

"We urge our clients to engage with us to review their current banking transacting habits. It is in many instances possible to reduce your fees, notwithstanding the fee increase.

"Firstly, start by choosing the right product based on your individual needs. Secondly, understand your banking behaviour. Lastly, choose cost-effective channels such as withdrawing cash at a point of sale (POS) or Nedbank ATM rather than another Bank's ATM or going into a branch," explained de Wet.

"Research has shown that clients are not always aware of the free services on offer as part of our great value banking offering. We urge clients to make use of the financial tools, as these can help them build their financial fitness over time. For example, our Bank Fees Calculator allows clients to compare our fees against other banks and more importantly will help you choose the right product. By doing this, you may be able to save a large share of your bank charges," concluded de Wet.

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