Go Banking - the account which has replaced the old Pick 'n Pay Financial Services account - will still offer lower bank charges than other banks and more competitive interest rates, is the promise to consumers.
Since last Saturday, all 41 500 active account holders at Pick'n Pay Financial Services were converted to the new Go Banking service. The conversion involved moving all account holders from the systems to the Nedcor systems. Nedcor's Go Banking has replaced Boland Bank, now BoE, as the new banking partner of Pick 'n Pay.
Anton de Souza, the general manager retail banking at Nedcor, says the Go Banking account is a powerful product offering the convenience of a transaction account with the interest rates of a top end investment account.
At a time when the big banks have stopped paying interest on credit balances in transaction accounts such as cheque accounts, the Go Banking account offers three percent interest a year at its lowest level, to the equivalent of money market rates at the top end, currently is 9.8 percent.
Despite the last two interest rate decreases Go Banking is still offering the same interest rate. The rates will not be adjusted until the bank is comfortable that clients are getting value for money, De Souza says. The services offered by Go Banking are:
* A transaction account offering competitive interest rates with money market rates kicking in for balances over R20 000;
* The account can be linked to a MasterCard which offers full transactional functionality or linked to an ATM card for cash withdrawals only;
* The primary channels are still the till points inside Pick 'n Pay stores, the call centre and electronic channels. In addition, you can use Nedcor-branded ATMs and Nedbank and Permanent Bank self service terminals (SST), which allow transactions other than cash withdrawals or deposits. Previously you could only make cash withdrawals at Pick 'n Pay tills.
With Go Banking, if you have a MasterCard debit card you can draw cash from Saswitch and Nedcor ATMs, use your card to pay for purchases at any place that accepts MasterCard and also use Nedcor SSTs.
If you have a Go Banking ATM card, you can use it for withdrawals at Nedcor and Saswitch ATMs and Nedcor SSTs;
* If you have an existing eduction policy or Global Investors facility, you will continue to receive service through Fedsure;
* The helpline will continue to be offered through Care Assist;
* The Vodago service is no longer available over the telephone but is still available at Pick 'n Pay stores; and
* The Leisurelink programme is no longer offered.
Concerns expressed by Personal Finance readers that the costs of their accounts could soar have been allayed by Nedcor. Account holders have been promised that Go Banking charges will be competitive and, on average, lower than those offered by major banks.
Full information on the costs and interest rates are available from the Go Banking call centre as well as on the website at www.gobanking.co.za.
De Souza says the facility whereby most transactions are free if you keep a balance of R2 000 in your account has been retained.
Go Banking officially took over Pick 'n Pay Financial Services clients in mid-August. Personal Finance did a survey of bank charges in June this year and De Souza says the same fees apply under Go Banking.
Some of the charges are:
* Cash withdrawal at a Pick 'n Pay till is R1.60 where your balance is less than R2 000, although this service will not be available until the end of November. But in the meantime you can make free withdrawals from Nedcor's CashPoint ATMs, as well as from Saswitch ATMs.
* Deposits at Pick 'n Pay tills as well as Pick 'n Pay ATMs continue to be free at CashPoint ATMs belonging to Nedcor.
* Balance inquiries at Pick 'n Pay tills were free in June, but you cannot get a balance from a till under Go Banking until the end of November. However, balance inquiries from either a CashPoint ATM or Saswitch ATM will be free until the end of November.
WHAT TO DO
If your Pick'n Pay Financial Services bank card does not work, its because you need to get a new card. Any money in your account has been transferred to a new Go Account and if you have not yet been contacted, you should phone 0860 20 20 20 to schedule an appointment.The client care centre number for Go Banking customers is: 0860 654 222.