ABSA Transact Account Summary
ABSA Transact Account is ABSA Bank’s basic banking account. The account is designed for low-income earners earning less than R3000.00 per month or earning nothing at all. Digital entrants such as Tyme Bank and Bank Zero have contributed to the South African banking market’s increased competition. Their $0 monthly fees and a slew of free transactions have put traditional banks under strain. There was fierce rivalry in 2019 as new accounts targeted entry-level markets.
Digital banks entered the market with the goal of enticing large numbers of low-income individuals to become customers. Offering no monthly fees and a slew of other attractive bargains, this has put traditional banks under strain, as they are unable to match the fees. By 2023, the majority of banks (ABSA, FNB, Standard Bank, Nedbank, and Capitec) will have changed their entry-level accounts in order to remain competitive in the low-income sector.
ABSA has also altered its rates and announced price reductions for its entry-level transact debit account. While these increased prices help entry-level banking clients, we cannot say the same for mid-level to high-level banking clients.
Below we show you ABSA’s scheduled monthly account fees for 2022 and the changes made:
ABSA Transact Account Fees 2022
| Fee Description | Fee |
|---|---|
| Monthly Fee | R4.90 |
| Minimum Bank Balance | R20.00 |
| In-store Card Swiping | Free |
| Cheque deposit: Branch counter | R60.00 |
| ABSA ATM Withdrawal | R2.00 per R10.00 |
| Point of sale (POS) Withdrawal | R2.00 |
| Cheque deposit: Branch counter | R60.00 |
| Cash deposit: Absa ATM | R2.00 per R100.00 |
| Cardless cash deposit: Cash acceptor | R2.00 per R100.00 |
Application
This is the basic ABSA account designed to make it easy for new clients to start formal banking at a low cost.
- Your valid South African Identity Document
- Proof of residence that is not older than 3 months
- A minimum of R20 to be deposited into your account to keep the bank account active.
Since the product is targeted at the entry-level market, the Absa transact account is accessible for customers with less than R3000 monthly income. Should you exhibit higher transactional activities, like, more than R5000 per month for 3 consecutive months, the bank moves you to their Flexi account.
Account features
- As any transact debit account is expected to function, you can make withdrawals, deposits, transfers, account payments and statements at any Absa ATM
- Absa transact debit account offers you unlimited balance enquiries at Absa ATMs and from supporting retailer counter tills
- With the CashSend feature, you are able to send money to people even to those without bank accounts
- Topping up of prepared electricity or airtime can be done straight from your account
- You are able to keep a record of all your transactions with the aid of the NotifyMe SMS and email notifications sent to you
- The debit card can be swiped countless times with no limitations or restriction in the swiping frequency
- Using the “bank on me” feature, you are able to pay banking fees for another customer
- There are rewards and discounts given to you whenever you are using your visa card to pay for your travel costs
- You can manage your account using the Absa online, mobile and telephonic banking services
- Borrowing the Absa loans becomes easy as the assessment of you funds become he account is accessed anytime you need
Account payments and funds transfers
- There is no charge whenever you are transferring funds using an Absa ATM, Online, Mobile or Telephone (IVR)
- Funds transferred over the branch counter cost R75 while transferring with the aid of a telephone adviser will cost you R7
- Sending cash using CashSend from Absa ATM, Mobile or Online costs R6 per R1000
Competitive advantages of the Absa transact account
- Their reduced fees have paved way for newcomers, making it affordable to transact using formal banking services
- The fact that the account accommodates even R0 monthly income earners allows everyone over the age of 18 to open their own bank accounts
- There is no limit of swiping your card, allowing people to carry less cash in their pockets and adapt to plastic money
- Zero subscription fee for Absa Online, mobile and telephone banking
Competitive Disadvantages of the Absa transact account
It is only accessible when your income is less than R3000, the moment your transactional activities exceed R5000 for 3 months, the bank moves you to a higher tier product.
Conclusion
The Absa transact account is a competitive product to counter pressures caused by the entry of digital banks in the market. The product is designed in a way that will lure newcomers and give them an opportunity to a manageable bank account. However, the account fees have been reduced at the expense of other bank products in the high tiers.
