Bank reaps benefits on a low fee product

Low cost, high value - New FNB product attracts lots of South Africans

The sales of the First National Bank Silver Collection, a low-fee banking “bundle” designed for people earning at least R5000 a month, have grown in leaps and bounds since its launch in October 2007. Its affordable fee structure is the main attraction for consumers.

FNB believes that the product is so attractive because it has been packaged in a cost-effective manner and delivers significant value for money.

“The main trend we are picking up is that people enjoy its affordable fee structure. And as such, it is good value for consumers because they can now transact in a cost-effective way and save some money in the process,” says Ilse Smuts of FNB Core Banking Solutions.

The Silver Collection consists of a bundled Cheque Account and Credit Card. Both are very competitively priced; the Cheque Account with a built-in savings pocket offers arguably the best value available in the local market today – it gives local banking customers unlimited transactions for only R66.00 a month.

In addition, the collection offers an optional Silver Visa Credit Card, with a monthly fee of only R8.25. Value added benefits which are offered to the Credit Card customers without any additional charge include Automatic Debt Protection, eBucks loyalty rewards and personalised rates to mention only a few benefits.

A study conducted by Finweek last year claimed that local banking consumers pay an average of R350 a month on banking fees – the FNB Silver Cheque Account will cost you less than a fifth of this price.

The FNB Silver Collection is a bold move by the bank in offering an affordable product at a time when the local banks have come under pressure for their fees.

We have heard concerns that people’s savings can be eroded by bank charges. Not so with the Silver Cheque Account.

In an attempt to encourage people to save, FNB has zero-rated electronic transfers between the Silver Cheque Account and the savings pocket, which encourages disciplined savings.

The FNB Silver Collection range now boasts millions of rand in funds invested in its linked savings pockets.

The launch of the offering has also revealed noteworthy trends in its target market, with about 50% of those who signed up for the Cheque Account also saving money in its savings pocket.

“The initial success of the offering, in particular the savings element, shows that people want to save and that the FNB Silver Collection meets both their transactional and savings needs,” Smuts said.

What makes the product even more desirable is the fact that both the Visa Cheque Card and Visa Credit Card issued sport an image of the official 2010 FIFA World Cup™ trophy.

And, don’t forget – FNB is an official national supporter of the 2010 FIFA World Cup™ and in addition to the great benefits offered by the Silver Collection, account holders stand a chance to win two tickets to the 2010 FIFA World Cup™ and Confederations Cup 2009, just by banking with FNB.