Capitec Bank Ltd review 2024

Trade NameCapitec Bank Holdings Limited
Company TypePublic Company
Traded AsJSE: CPI
IndustryBanking, Insurance Financial Services
Founded1 March 2001
FoundersJannie Mouton
Michiel Le Roux
Riaan Stassen
Headquarters5 Neutron Street, Techno Park, Stellenbosch, Western Cape, South Africa
Area ServedSouth Africa
Key PeopleGerrie Fourie (CEO)
ProductsLoans
Insurance
Investment Banking
Savings
Investments
Debit Cards
Credit Cards
Commercial Banking
ServicesFinancing
Number of Clients20.1 million
Total Assets (2024)R191 billion
Websitewww.capitecbank.co.za


Capitec Bank offers a wide range of financial services tailored for both personal and commercial clients. As of 2024, Capitec Bank serves more than 20.1 million clients, many of whom have multiple products with the bank.

Here is a breakdown of Capitec Bank’s client base:

  • Savings clients: 7.6 million
  • Credit clients: 1.3 million
  • Digital clients: 11.4 million
  • Live Better clients: 13.4 million

Capitec Bank has experienced substantial year-on-year growth since its inception and has expanded its network to encompass 860 branches. With a workforce of 15,451 employees, Capitec Bank stands as one of the largest employers in South Africa.

As the bank continues to extend its reach, it also enhances its offerings. Capitec Bank provides an extensive range of banking and insurance services, demonstrating its commitment to meeting the diverse needs of its clientele. Below, we provide a detailed overview of Capitec Bank’s product offerings.

What services does Capitec bank offer?

Capitec bank offers 6 types of services. These services include Savings, Loans, credit cards, debit cards, commercial banking, investment banking and investments.

Here are some of the services from Capitec Bank Ltd

Capitec Personal Loans

Capitec Bank offers personal loans to eligible individuals, allowing them to apply for credit up to R500,000.00. The repayment period for these loans ranges from 1 to 84 months, giving borrowers flexibility in choosing their preferred loan amount and repayment duration. However, approval and loan terms are subject to affordability assessments and credit checks.

Once approved, the funds are disbursed immediately, providing quick access to the required money. Interest rates for these loans start at 13.75% per annum, with personalized rates based on individual credit profiles. It’s important to note that borrowers with lower credit scores may incur higher interest charges due to increased credit risk.

Capitec Home loans

Capitec Bank provides home loans to individuals aged between 18 and 60, offering financing of up to 100% of the home’s value. Collaboration with SA Home Loans facilitates home loan financing, ranging from R100,000.00 to a maximum of R5,000,000.00. Borrowers have the flexibility to repay their home loans over a maximum period of 300 months. The interest rates on these loans are determined based on the borrower’s credit profile and affordability criteria.

Capitec Bank credit card

Capitec Bank simplifies banking by offering a single card for both savings and credit needs, eliminating the hassle of carrying multiple cards. The Capitec Bank credit card is cost-effective, with a monthly account fee of R50. Additionally, cardholders earn interest on positive balances at a rate of 3.50% per year.

The credit card provides access to credit up to R500,000.00 and includes insurance coverage for events such as retrenchment, death, and illness, enhancing financial security for cardholders.

Capitec Bank Debit Card

Formerly known as the Global One account, the Capitec debit card represents a low-interest savings account designed to simplify and make banking affordable. More than 7.6 million Capitec clients with the debit card pay less than R50 per month in bank charges, resulting in substantial savings for customers. The Global One account features minimal charges, including R0 per transaction for card purchases both locally and internationally.

Withdrawals at tills incur a fee of only R1, while ATM withdrawals at Capitec ATMs cost R6 per R1000 and R8 per R1000 at other banks’ ATMs in South Africa. Immediate payments to any bank account within South Africa carry an R8 fee per transaction. The Capitec Bank debit card offers a wide range of functionalities, allowing users to book flights, conduct online transactions, make payments at tills, withdraw from any ATM in South Africa, and swipe globally.

Sending payments to other Capitec clients is effortless, requiring only their phone number for a transaction. Additionally, users can send money to anyone in South Africa through their Global One account, with collection available at any Checkers or Shoprite outlet nationwide.

Investment banking

Capitec Bank offers a variety of investment options catering to different savings needs, including fixed-term, tax-free, and regular savings accounts. These accounts generate varying returns based on their specific purposes.

The tax-free savings account utilizes both nominal and effective interest rates. The nominal rate is employed for daily interest calculations until it is compounded at the end of each month. Subsequently, the effective interest rate is utilized for interest earned throughout the 12-month investment period.

The fixed-term savings plan allows clients to invest for durations ranging from 6 to 60 months. This plan enables clients to reinvest interest from year to year, potentially earning an interest rate of up to 9.5%. The minimum deposit amount for this account type is R10,000.00.

Capitec bank mobile app and internet banking

Capitec bank mobile app assists customers with their everyday banking. One can send money in real-time without going to a bank. You can easily apply for loans and credit cards on the app. Can also send money to none Capitec bank Ltd customers to collect at Shoprite or checkers. Other functions include statement downloads, balance check, debit order schedule, interbank transactions and debit card applications.

Conclusion

Capitec Bank offers a comprehensive range of financial products and services tailored to meet the diverse needs of its clients. From personal and commercial banking to investments and loans, Capitec Bank prioritizes affordability, accessibility, and flexibility. With innovative features such as low-cost banking, integrated savings and credit solutions, and various investment opportunities, Capitec Bank continues to empower individuals and businesses to achieve their financial goals. As a customer-centric institution, Capitec Bank remains committed to providing reliable, transparent, and efficient banking solutions, making it a trusted partner for millions of clients across South Africa.