Capitec Bank has become a major player in South Africa’s banking sector. Since its start in 2001, it has grown into the second largest retail bank in the country based on customer numbers. The bank focuses on making banking simple and affordable for everyone.
Capitec offers all-in-one banking solutions to help people take control of their money and live better lives.
Their services include savings accounts, credit cards, and loans. They also provide modern digital banking options through their mobile app and online platform.
Capitec stands out for its innovative approach to banking. They aim to cut out unnecessary fees and make their services easy to understand. This has helped them attract millions of customers who want straightforward, low-cost banking options.
Let’s explore what makes Capitec unique and why it has become so popular in South Africa.
Understanding Capitec
Capitec Bank has become a major player in South African banking. It offers simple, affordable services and uses technology to make banking easier for customers.
History and Philosophy
Capitec Bank opened its doors in 2001. The bank’s goal was to make banking simpler and more accessible for all South Africans. They wanted to offer low fees and easy-to-use accounts.
Capitec grew quickly by focusing on what customers needed. They kept things basic at first, with just a savings account and loans. As they got bigger, they added more services.
The bank’s philosophy is all about simplicity. They try to cut out extra costs and confusing products. This helps keep fees low for customers. Capitec also puts a lot of effort into using technology to make banking faster and easier.
Services and Banking Solutions
Capitec offers a range of banking services for individuals and businesses. Their main product is the Global One account. This account combines savings and transactions in one place.
Customers can do most of their banking on their phones or online.
Capitec has a mobile app that lets people:
The bank also offers credit cards and personal loans. For savers, there are fixed-term savings plans with good interest rates.
Capitec tries to make its financial products easy to understand. They explain things clearly and don’t have hidden fees. This approach has helped them win many new customers over the years.
Opening Your Capitec Account
Capitec offers a straightforward process for opening an account. Customers can choose from different account types and complete registration either in-person or online.
Account Types and Features
Capitec provides various account options to suit different needs. The Global One account is their main offering, combining savings and transactional features. It comes with a debit card and allows for free cash withdrawals at selected retailers.
Capitec also offers a savings account with competitive interest rates. For younger customers, there’s a youth account available.
Each account type has unique benefits, such as low monthly fees and free internet banking. Customers can earn interest on their positive balances, making Capitec accounts attractive for both spending and saving.
The Registration Process
To open a Capitec account, customers need to provide a South African ID or valid passport. Proof of residence is no longer required for most account openings.
For employed individuals, recent payslips may be requested. Self-employed applicants might need to provide bank statements or other financial documents.
The process is quick and can be completed at any Capitec branch. Staff will guide customers through the necessary steps and help with any questions.
Remote Onboarding
Capitec now offers remote account opening through their mobile app. This convenient option allows customers to set up an account from home.
To open an account remotely, customers need to:
- Download the Capitec app
- Enter their South African ID number
- Take a selfie for verification
- Provide personal details
The entire process takes just a few minutes. Once complete, customers can start using their new account immediately through the app.
This remote option makes banking more accessible, especially for those who can’t easily visit a branch.
Managing Finances with Capitec
Capitec Bank offers a range of tools and services to help customers manage their money effectively. Their user-friendly options make saving, earning interest, and handling daily banking tasks simple and convenient.
Savings Account Options
Capitec provides several savings account choices to fit different needs. The Global One account is their main offering, combining everyday banking with savings features. It’s easy to open and has no monthly fees.
Customers can create up to four savings plans linked to their Global One account. These plans are great for setting aside money for specific goals like holidays or emergencies. Each plan can have its own name and target amount.
For those who want to save larger sums, Capitec offers fixed-term savings accounts. These accounts lock money away for a set time, usually offering higher interest rates in return.
Competitive Interest Rates
Capitec is known for its attractive interest rates on savings. The Global One account earns daily interest, which is quite rare for a transactional account. The rate changes based on the account balance, with higher balances earning more.
Their fixed-term savings accounts often have some of the best rates in the market. These accounts are ideal for those who can set aside money for longer periods.
Capitec regularly reviews and updates its interest rates. This helps ensure their offerings stay competitive in the ever-changing banking landscape.
Online Banking
Capitec’s online banking services make managing money quick and easy. Customers can access their accounts 24/7 through the Capitec mobile app or internet banking platform.
The app lets users check balances, send payments, and manage debit orders. They can also apply for credit and buy prepaid services like airtime and electricity.
For added convenience, Capitec’s app includes budgeting tools. These help customers track spending and stick to financial goals. The app also allows users to block lost cards instantly, adding an extra layer of security.
Capitec’s online services are designed to be user-friendly, even for those new to digital banking. This makes it simple for all customers to take control of their finances from anywhere.
Personal Loans with Capitec
Capitec offers personal loans with flexible terms and competitive interest rates. Customers can borrow up to R500,000 over 84 months, with fixed monthly repayments and interest rates starting from 13.25%.
Exploring Loan Options
Capitec provides personal loans for various needs. Borrowers can choose the amount they want, the lowest monthly instalment, or the lowest interest rate. The bank offers loans up to R500,000, which can be repaid over a maximum of 84 months.
Interest rates start from 13.25%, but the actual rate depends on the borrower’s credit profile. Capitec uses a personalised pricing model, meaning each applicant may receive a different interest rate based on their financial situation.
The bank also offers credit facilities, which work like revolving credit. This option allows customers to access funds as needed, up to their approved limit.
Applying for a Loan
To apply for a Capitec loan, applicants must be at least 18 years old and have a steady income. The minimum monthly income requirement is typically R5,000 for personal loans.
Required documentation includes:
- Valid South African ID or passport
- Proof of residence (not older than 3 months)
- Latest payslip or bank statements
- Three months’ bank statements
Applicants can apply in person at a Capitec branch, online through the bank’s website, or via the mobile app. The application process is quick, with credit approval often granted within minutes.
Repayment Terms
Capitec offers flexible repayment terms to suit different budgets. Loan terms can range from 1 to 84 months, depending on the loan amount and the borrower’s affordability.
Repayments are fixed, making it easier for borrowers to budget. The bank offers several repayment methods:
- Debit order
- EFT transfer
- Cash deposit at a Capitec branch
- Online banking transfer
Early repayment is allowed without penalties, which can help reduce the overall interest paid. Capitec also provides an online loan calculator to help borrowers estimate their monthly repayments based on different loan amounts and terms.
Advanced Capitec Services
Capitec offers cutting-edge banking solutions to meet modern financial needs. These include robust mobile platforms and flexible lending options tailored for short-term requirements.
Capitec Mobile Solutions
The Capitec mobile app puts banking at customers’ fingertips. It allows users to manage accounts, transfer funds, and pay bills with ease. The app also offers budgeting tools and spending insights.
Users can open new accounts directly through the app. This process is quick and doesn’t require visiting a branch. The app uses top-notch security measures to keep data safe.
One handy feature is the ability to freeze and unfreeze cards instantly. This helps if a card is lost or stolen. The app also lets users set transaction limits for added control.
Short-Term Loan Facilities
Capitec provides short-term loans for unexpected expenses or cash flow gaps. These loans have competitive interest rates and flexible repayment terms.
To apply, customers need to show proof of income and residency. The bank uses a quick approval process. Results are often given within minutes.
Loan amounts vary based on the borrower’s credit score and income. Repayment periods typically range from 1 to 6 months. Capitec allows early repayment without penalties, helping customers save on interest.
The bank also offers credit insurance on these loans. This can cover repayments if the borrower faces job loss or illness.