NCBA monthly maintenance fees: Monthly maintenance fees are common among local banks. They are fees, or a monthly service fee, charged by a financial institution to a customer using a checking or savings account.
Monthly maintenance fees are charged at the end of the month based on the product type and are sometimes automatically withdrawn from your account.
Last month, NCBA Bank however announced it will not charge monthly fees for its retail banking accounts from 1st July 2024. The new adjustment will affect the bank’s Consumer, Commercial and SME banking accounts.
The bank says this change will affect existing current account products and new products applicable for incoming customers. According to NCBA the waiver of these fees will help accelerate the Bank’s customer growth strategy. But what does this really mean to the customer?
With the current financial constraints, the move by NCBA bank is a relief for so many of its customers and it reduces the overall cost of maintaining a bank account, making banking more affordable and accessible. This change allows NCBA customers to keep more of their money, especially for those who may have struggled to meet the requirements for fee waivers, such as maintaining a minimum balance. It also simplifies account management, as customers no longer need to worry about unexpected fees or meeting specific criteria to avoid them.
“We’ve realized with the current economic landscape the customer values every shilling, and by eliminating the monthly account maintenance fees for both local and foreign currency accounts our goal is to provide a product that ensures they get the full value of their money.’’ Mr. Tirus Mwithiga, Group Director, Retail Banking at NCBA says.
At the same time, NCBA hopes the move will help attract new customers. In a competitive Kenyan banking landscape, offering zero maintenance fees can differentiate NCBA from its competitors, making it a more attractive option for potential customers. Fee-free accounts are particularly attractive to younger individuals, SMEs, or those with lower incomes who have previously avoided traditional banking due to cost concerns. With zero fees, NCBA is looking to broaden its customer base.
‘’This new era of no monthly fees is in line with our commitment to put our customers at the heart of everything we do.’’ Mr. Tirus says.
NCBA adds the waiver of these fees will help accelerate the Bank’s customer growth strategy, a move expected to scale its Retail Banking footprint in a bid to increase affordability and provide customer-focused financial solutions.
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