Absa has launched its Ultimate Banking proposition as a one-stop banking solution for its customers, at an attractive monthly fee.

Absa customers currently using a Gold transactional account should consider switching to Absa’s recently launched Ultimate account.

The Ultimate account starts at a monthly fee of R98, compared to R125 a month for the equivalent Gold Value account – and it includes an optional credit card with no monthly fee.

Based on the new value proposition, Absa Ultimate is one of the best-value bank accounts – across all banks – for the middle-class segment.

More transactions are included in the bundle, and it currently pays an interest rate of 7.15% (linked to the repo rate) on the linked Savings Booster – this is a higher interest rate than is offered on most transactional and immediate-access savings accounts.

If you maintain a balance of R25 000, you won’t pay the R98 monthly fee.

Absa has launched its Ultimate Banking proposition as a one-stop banking solution for its customers. Ultimate Banking is available as two options – Ultimate for R98 per month and Ultimate Plus (equivalent to Absa Premium banking) for R220 per month.

Special Shari’ah-compliant versions of Ultimate Banking will be available to Islamic customers.

The monthly fee includes a transactional account, an optional credit card, and several other benefits, including R100 000 free life insurance for the first 12 months, and free Absa Rewards.

Unlike most bank reward programmes, customers will earn the same Absa Rewards whether they are using their debit or credit card. This means you don’t have to spend on a credit card to earn rewards and get cash back.

Quick and easy access to credit is a key benefit of Ultimate Banking.  The new Balance Booster, a small facility with a limit of up to R2 000, is included by default for all qualifying customers and helps you cover unforeseen or surprise transactions that might not necessarily be covered by your available balance.

This “safety net” is also included at no additional fee and attracts zero interest on debit balances.

Ultimate Banking includes free family banking with 100% discount on the spouse’s bank account fees. It includes child and student accounts with no monthly fees.

Currently customers must go into a branch to switch bank accounts. This is an unusual move as banks are mostly trying to get customers to adopt digital channels. However, Nick Nkosi, Managing Executive for Transactional Banking at Absa Everyday Banking, says that over the next few months, customers will be able to switch accounts through the various digital and telephonic channels.

“Absa has various strategically located points of service and engagement to create ease and deepen our customer relationships,” says Nkosi.

“Whether it’s our branches, mobile branches, or self-service kiosks, we are committed to meeting customers where they are and addressing their needs through a seamless and human-centered customer experience. Our colleagues continue to integrate our digital offering into providing both sales and service solutions to ensure customers stay and grow with us.”

Bank account comparison

How do the other banks’ “bundled” accounts compare to the R98 Absa Ultimate account? (Note that Absa Ultimate Banking is the only option that includes a credit card with no monthly fee.)

FNB Fusion Aspire: R115 per month. This includes a credit facility which has 30 days interest free but does not include a credit card. An Aspire credit card would be an additional R55. FNB customers automatically qualify for eBucks.

Nedbank MiGoals: R99 per month. This does not include a credit card which would be an additional R50 per month. It costs R30 per month to join the Greenbacks reward programme.

Standard Bank ACHIEVA: R99 per month. This includes a MyMo plus card, and a gold credit card for an additional R63 per month. There is an additional R25 per month to join UCount Rewards.

Capitec does not offer a bundled account, however, based on the 2024 Solidarity Banking Report, for a similar number of transactions the cost would be around R109 per month. There would be an additional fee of R50 for a credit card. The Capitec Live Better reward programme does not have a monthly fee.

This article first appeared in City Press.