Retailer Shoprite’s Money Market Account is now a fully-fledged transactional bank account, the first offering of its kind by a South African retailer.
The retailer introduced its Money Market account in 2020 as a free account allowing customers to save, send, or transact and even pay utility bills at its in-store Money Market counters.
The service, which has garnered nearly two million customers since its launch, will now offer users essential transactional banking services and save on high fees, such as ATM fees. Customers can withdraw or deposit cash at Shoprite, Checkers, and USave stores. It also allows customers to run additional services such as sending money, purchasing airtime, data, and electricity, and sending grocery vouchers from a phone.
The retailer has built its Money Market bank account on a low-cost model with a no monthly fees promise. It only charges its clients a flat fee of R5 for cash withdrawals and even offers lost card replacements for free.
The account limits in-store cash deposits to R5,000 and R10,000 for EFT deposits per day. Cash transfers are also limited to R5,000 to other Money Market Account customers and R4,999 to non-customers.
Users’ account balances may only be a maximum of R25,000 at any time.
This is what Shoprite’s Money Market account offers
The limits on the account.
The pricing guide.
The limits on the account.
The pricing guide.
Shoprite’s Money Market account has become the latest entrant in the low-cost banking space and will compete with several digital banks available in the market and cheap alternatives offered by traditional banks.
Such competition will come from former FNB executive Michael Jordaan’s Bank Zero and TymeBank, backed by billionaire Patrice Motsepe. The market has also seen Standard Bank’s MyMo, and FNB’s Easy Zero products emerge.
Bank Zero
As its name infers, Bank Zero has a no-fee policy for most of its banking services and typically only charges for extras such as third-party services. These include sending money to non-Bank Zero account holders and cash withdrawals at ATMs. In addition to its no fees policy, Bank Zero will not charge clients for services such as balance requests and payments to recipients.
This is what the bank offers for free
Bank Zero’s third party costs.
The bank’s account fees start from R2 for nuisance services such as insufficient funds notifications, exceeding limits, etc. Its other R2 fee services include withdrawing cash at a partner retailer and for balance enquiries. For cardless cash withdrawals, the bank charges R8.50.
These are the services clients will pay for
Bank Zero’s charged value added services.
Bank Zero’s free services.
Bank Zero’s charged value added services.
Bank Zero’s free services.
TymeBank
Direct rival bank TymeBank is an ultra-low-cost alternative account that does not charge a monthly fee. Its fees start from 30c for SMS transaction notifications to R160 for a late payment reversal to a TymeBank account. The bank charges R7 for cash deposits, sending cash vouchers to non-TymeBank customers, and an immediate EFT, among other services.
This is what the bank offers for free
TymeBank free services.
TymeBank free services.
TymeBank free services.
TymeBank free services.
These are the services clients will pay for
TymeBank charged services.
TymeBank charged services.
TymeBank charged services.
TymeBank charged services.
TymeBank charged services.
MyMo by Standard Bank
Over time, South Africa’s traditional banks have also been introducing low-cost accounts to compete with digital bank entrants into the market.
In 2019, Standard Bank launched its MyMo account, which has two options. The MyMo PLUS offering, clients pay a fixed monthly service fee for various services and transactions. The second is the MyMo Pay-as-You Transact option, where customers pay a minimum monthly service fee for performing transactions.
MyMo account options.
This is what both the accounts offer
Standard Bank’s MyMo pricing.
Standard Bank’s MyMo pricing.
Standard Bank’s MyMo pricing.
Standard Bank’s MyMo pricing.
Standard Bank’s MyMo pricing.
Standard Bank’s MyMo pricing.
Easy Zero by FNB
Lender FNB also introduced its Easy Zero account in 2019, which has zero monthly account fees. Transferring cash from an Easy Zero account to a FNB user is also free, making balance enquiries on mobile or online and inContact notifications.
Cash withdrawals from an FNB ATM cost R7 for every R1,000 on its Easy Zero account. It costs R12 and an additional R3 per R1,000 if you withdraw from a non-FNB ATM. Withdrawing at partner retailer tills is free but depositing costs R19.95.
This is what the bank offers on its East Zero account
FNB’s Easy Zero’s account pricing.
Compared to the low-cost bank accounts available, Shoprite’s account has the lowest fees, a flat rate of R5 for withdrawals, which is the cheapest among the accounts compared. While others may have a lower price for withdrawals, they are not fixed and have a charge per R100 or R1,000 withdraw.
