FNB offers customers individualised interest rates on their credit cards

Wouldn’t we all like to deal with a bank that looks at us individually, rather than as part of a group?

First National Bank (FNB) has now moved in this direction, with FNB Credit Card now offering new customers personalised interest rates when they apply for a credit card.

FNB’s introduction of personalised pricing on its credit card is designed to reward customers who have built themselves a good credit profile over the years.

“The introduction of personalised interest rates is a way of saying we do recognise the good work that people have been doing in honouring their debt obligations,” says Barrett Whiteford, Head of Marketing for FNB Credit Card.

“This way we are rewarding those who have through the years managed to maintain a good credit record. We reward them with favourable interest rate when they sign up for an FNB Credit Card. We believe this will entrench and encourage good financial management amongst the South African customers.”

Whiteford said, personalised interest rates will also make it easy for FNB to match the customer with the right products, limits and relevant benefits and services according to their card type.

Now, when customers apply for an FNB Credit Card the bank will perform the normal assessments and if the results show that the customer has a good credit record FNB Credit Card will give them a good personalised rate.

According to the National Credit Act, financial institutions can charge up to 36% interest on credit card agreements. FNB now offers good customers up to 19% as a discount on interest.

At a time when the majority of customers are battling with high debt repayments because of high interest rates, soaring food prices and increased fuel prices the personalised rate could go a long way in hedging customers in these tough times.

“As a bank we do understand that many customers are under a lot of pressure because of the existing economic pressures.   We do hope that the rebate we are offering customers on our credit card will provide many customers with some form of relief,” Whiteford said.

A credit card provides customers with a safe and convenient means of making purchases. By taking up a Balance Transfer customers can transfer or consolidate their debt onto an FNB Credit Card at a rate of Prime less 1%.

The key feature of a credit card is that every swipe is free and most transactions will earn customers eBucks (excluded fuel transactions, cash withdrawals, and third party payments).

eBucks is FNB’s rewards programme and are earned for doing everyday things like shopping and paying bills.  An effectively managed credit card is the most useful and cheaper transactional tool available.