The Devil In The Detail

Disclaimer:

I am not a economist or an authorised financial consultant. I am a pastor!

Some of my examples on based on speculation on how many people fit into my specific bank category. However, the formulas are off the Nedbank Website.

Here is some of detail. (There is more specific detail on Nedbank’s website which have less impact on me)

I hold a “Savvy Plus account” with Nedbank. There are some “in-bundle” and “out of bundle” benefits and costs.

Here are some other fees

Type 2019 2020 % increase
Savvy Current account cost R110.00 115.00 4,5%
Overdraft facility per month R43.00 R49.00 14%
Check deposit R45.00 R65.00 44%
Online instant payment up to R2000 This is a new feature R10.00
Online instant payment above R2000 R40 R49.00 22,5%
Prepaid top-up (data, airtime etc) at Nedbank Free R1.00
SMS notification online banking R1.10 R1,15 4,5%
Email notification online banking R0,95 R1.00 5,2%
Fax notification online banking R8.00 R10.00 25%

 

According to Nedbank’s Website they have 30,577 employees and 7,8 million clients.

For example,

If 500,000 of their clients have a Savvy Plus account like me, they will increase the bottom-line turnover (which really will be straight profit) as follows:

Savvy Plus Account

In 2019 they should be earning R660 million p.a., and in 2020 they will earn R690 million p.a. A neat profit of R30 million rand.

Overdraft facilities

Assuming all 500,000 of us Savvy account holder have an overdraft facility, check this out.

Currently their overdraft fee on our Savvy account is R258 million p.a.. With the increase it will be R294 million p.a. A cool R36 million p.a.

 

Nedbank Home Loan

If you have a home loan and deposit cash into your home loan – check this out.

In 2019, you will pay R40.00 + R1,60 per R100.00.

Let’s say you deposit some of your end year bonus to your home loan to pay it off quicker and you do deposit R5000 cash, it will cost you R120.00 in fees.

In 2020, the same amount will cost you R175.00 46% increase (R75.0 + R2.00 per R100)

If you deposit a cheque on your home loan it, in 2019 it will cost you R45.00 and 2020 it will cost R65.00, and increase of 44,4%

I have no idea how many people deposit extra cash or cheques into the Bond, but for argument say, let’s say that 20,000 people sell something for R5000 and decide instead of blowing it, they are going to deposit it into their bond.

In 2019, Nedbank will generate R2,4 million.

In 2020, Nedbank will generate R3,5 million. R1,1 million. Not a bad gain for the same amount of work!