We all go ranting and raging about the injustice of the bank charges but don’t, in the end, do anything practical about it.
Over the past couple of months I’ve noticed the rediculous charges on my bank statement that have ruffled my feathers somewhat.
To draw cash from your own bank’s ATM is now in the region of R11/transaction.
But the second charge – which is actually more of a pain – is the R13.25 it now costs me every month for my R170 stop order to Netstar for some or other gadget they fitted to my car which my insurance insisted on.
I started looking more closely at my bank charges and realised the onus rests on me to get them lower.
A visit to the bank or reading carefully through the conditions of the charges as set out on the bank’s website is quite an eye-opener. Let’s start with the R9.25 for drawing cash at my bank’s own ATM. For many years I always just drew R500 a time.
But recently I’ve noticed the option of drawing R500 has been replaced by an automatic option of R600.
So if you now want to draw R500 you have to enter that specifically as an “other amount”. Of course, the alternative of simply clicking on R600 is much simpler.
But I didn’t know – nor does the ATM tell you – the charge for withdrawing R500 is R9.25 while the charge is nicely doubled if I choose the more convenient one-click option of R600. Some banks are just too Sneaky, for words.
The second part of bank charges that really get me upset is the service providers who insist on a debit order on your bank account or credit card.
Some service providers insist on the right to draw money from your account. And the bank charges some banks charge, can easily cost you up to R13.25/month.
In short, if I have pay the five service providers every month, instead of giving them the right to draw from my account – I’d save more than R60/month.
Those are just a few of the little costs that sneak quietly into our daily expenses.
There are two golden rules here: the bank isn’t going to tell you or warn you how you can save. Forget that. You have to find out for yourself what its bank charges involve and then do something about it.
Don’t allow anyone to draw money from your account via a debit order. Be sure to push your money. For the recipient of the money, the payment is safer, quicker and cleaner even than a debit order. And plus to try and stop a debit order is a nightmare on its own.
If your IT knowledge or financial practice is such that money can’t be pushed to you and you still have to draw, it’s time you learned and adapted – otherwise you’ll lose business.
Every bank offers various pricing options and packages…so lets have a look at them some of their basic charges.
And just to remind the listeners… these are just the basic charges.
- With Standard Bank, the Elite bank account, you pay R100.88/month. and no interest income is insight…
- Their U Count Rewards Programme where you earn Rewards points for every rand you spend using your credit, cheque or debit card is R22.19pm.
- What’s free if you bank with Standard Bank is; Unlimited swipes and cash withdrawals at till points
- Unlimited electronic transactions and balance enquiries; 4 free cash withdrawals a month at our ATMs; 3 free deposits a month at their ATMs, Monthly statements via email, Notifications on transactions.
- Cash withdrawals at a Standard Bank ATM is R1.82 Per R100.00.
- Other banks Atm cash withdrawals R8.07 + R1.82 Per R100.00
- Internal Debit orders cost R4.54.73 each while External Debit orders cost R16.64
- Ned Bank, the Elite bank account, you pay R106/month. and no interest income is insight… Cash withdrawals at a Nedbank ATM is R5.00 + R1.50/R100 so it is (R12.50/R500
- Other bank’s Atm cash withdrawals R12.50 + 1.50/R100(R20/R500
- The cost of Internal and External Debit orders are free
- Their Nedbank Greenbacks Rewards Programme
- What’s free is their Online/cellphone banking
Unlimited card swipes
Unlimited debit orders
Four Nedbank ATM withdrawals
- With FNB, pay no more than R105 per month unlimited transactions at FNB. Get on the right plan that suits your usage
- Their eBucks Rewards Programme IS A Rewards Programme where you earn Rewards points for every rand you spend using your credit, cheque or debit card is. . Personally I get about R60 – R100 ebucks on my cheque/credit card plus +-R200 ebucks back in fuel rewards each month. I also swipe my card for EVERYTHING as there’s no charge on a swipe.
- What’s free if you bank with FNB is, Unlimited free swipes when you use your Gold Account Card to pay; Unlimited electronic transactions (debit orders, transfers, payments and prepaid airtime); Withdraw cash at Shoprite & Checkers, Pick n Pay, Boxer stores and selected Spar and Usave tills ;Free subscription to inContact. This means we’ll SMS you every time more than R100 goes out of – or into – your account; Free subscription to Cellphone Banking, Online Banking, Telephone Banking and the FNB Banking App. You pay only for the data you use ; Free emailed monthly statements
- Cash withdrawals at a FNB Bank IS A combination of R5 000 free per month, after which fees are R1.85 Per R100.00( So for R500 – (R9.25).
- Other banks Atm cash withdrawals R8 + R1.85 Per R100.00
- While Internal and External Debit orders are free
- Capitec’s bank charges is for some of us music to our ears!!
- The monthly administration charge is R5.80 while cash withdrawals at a Capitec ATM is R6.56.
- Cash withdrawal at any of the over 30 000 ATMs in South Africa is R8.83 (only R2.27 more than at a Capitec ATM)
- For free, they offer: Make card purchases and shop online worldwide , Transfer money between your Capitec accounts ,
–Access your accounts on our banking app or Internet banking , Create recurring payments (stop orders) on our app or Internet banking, Email your statements from our app or Internet banking
- Cash withdrawal at a Capitec ATM
- R7 at ANY ATM for ANY amount.
- Drawing money at Pick ‘n Pay, Shoprite or PEP is R1.61 while debit card purchases are free.
- Internet banking is R125 once off, so even over a one year period it is cheap.
- Debit orders cost R3.73 each while an EFT is R2.50.
- For R5.35, Payment or transfer in branch or Create or cancel a stop order.
- Even if you do not want to use Capitec as your primary bank account, you can open it as a pure transactional account where all your debit orders etc. comes off, and seeing the figures quoted in the article i can see that it will save you tons of money .
- I draw my money at Pick n Pay to keep charges low. I save hundreds of Rands.
- Aside from low fees (and fees you can actually remember and track easily), the positive interest is always welcoming! Capitec also pays 4.75% -6% interest depending on what your current balance is.
- Monthly Service Fee – R105.92
- Cash withdrawals Branch counter R60,53 + R1,66/R100
- Absa ATM R6,05 Point of sale (POS) R1,31 Absa-supported ATM R6,05
- Absa ATM cash deposits – 5
- Cash withdrawals Absa ATM – 5
- Debit card purchases and withdrawals (Local) – Unlimited
- Debit and cheque card purchases- Unlimited
- Point-of-sale (POS) cash withdrawals – Unlimited Unlimited
- Account payments via Absa ATM, Online, Mobile, Telephone (IVR)
- External debit orders – Unlimited
- Unlimited Funds transfers and internal payments
- Funds transfers via Absa ATM, Online, Mobile, Telephone (IVR)
- Internal debit orders & Stop orders – Unlimited Unlimited
- Electronic information enquiries, Statement – Absa ATM (mini), Online and Telephone (IVR)
- Balance enquiries – Absa ATM, POS, Online, Mobile and Telephone (IVR) – Unlimited
- Unlimited Notification fee (SMS or email) No charge
- No charge – eStatements
Depending on the benefits and transactional fees of an account, you will need to weigh up more than just the monthly service fee.
Some banks are expensive with few rewards or free benefits.
Others are cheap in terms of monthly fees but come with many extra transactional costs.
To decide which is best for you, look at both your budget and your needs.
You will overpay your bank more than R100,000 during your lifetime-through mortgages, credit card fees and interest, ATM charges, checking and savings fees, loans, and service charges.
So if you are subjecting yourself to ridiculously high bank charges, well the only one is You who can make the choices.
Whatever your current priority, and no matter what you have in mind for yourself, managing your money should take preference over your lifestyle and ambitions.
Money can either become your slave or your master.
And R1 wasted adds more favour in you becoming it’s slave.