Old Mutual’s OM Bank Launches With Low Fees And High Savings Interest

Old Mutual has officially rolled out its new digital-first bank, OM Bank, as it begins signing up customers in South Africa. The launch marks a direct challenge to Capitec, the country’s largest retail bank by customer numbers.

OM Bank is currently onboarding existing Old Mutual Money Account users and those who pre-registered after downloading the bank’s app earlier this year. Emails have been sent to Money Account clients, encouraging them to download the OM Bank app.

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“As a valued customer, you’re among the first to be eligible to sign up to this new banking offering, ahead of everyone else,” Old Mutual told customers in its announcement.

Money Account holders can continue using their existing accounts until the end of 2026. After that, transactions will be disabled, although customers will still be able to access their funds through Old Mutual’s support channels.

Digital Banking Features Designed for Everyday South Africans

OM Bank is positioning itself as a modern, mobile-first alternative for South Africans earning between R5,000 and R80,000 per month—a segment that overlaps directly with Capitec’s market.

The OM Bank mobile app, tested by Old Mutual employees since April 2025, offers:

Simple sign-up: No paperwork; register directly from a smartphone in minutes.

My Mobile Banker: A virtual assistant that helps track spending, set savings goals, and manage budgets.

Rewards program: Earn 10% back in points on qualifying credit card spend and 2.5% on debit card spend. Rewards can be redeemed for cash, vouchers, or airtime.

Savings account: Up to 7.23% annual interest.

Borrowing: 31 days of interest-free credit on qualifying purchases.

Future updates include debit order approvals via DebiCheck, digital voucher and lotto purchases, and compatibility with Huawei devices. In 2026, OM Bank plans to expand its savings and lending products, including fixed and notice deposit accounts.

Competitive Pricing and Market Ambitions

Old Mutual has invested heavily in its banking venture—spending R2.8 billion between 2022 and 2024 to establish OM Bank, with expected operating losses of R1.1 billion to R1.3 billion until 2028, when it projects to break even.

The bank’s competitive pricing is expected to attract cost-conscious customers. Key fees include:

Monthly account fee: R4.95

Credit facility fee: R69

ATM withdrawal: R10 per R1,000 (local) and R70 (international)

Domestic card purchases: Free

Real-time payments: Free up to R3,000; R1 for amounts above R3,000

EFTs: Free up to R3,000; R1 for higher amounts

Value-added services: Airtime (R0.50), electricity (R1), bill payments (R1)

With 3.1 million existing low-income customers, 400,000 Money Account users, and a R20-billion loan book, Old Mutual is aiming for rapid adoption. However, OM Bank’s full public launch is only expected in the last quarter of the year.

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