SA bank charges lower, research shows

2012-10-18 15:39

Johannesburg - The cost of banking has fallen in the past year, according to research released on Thursday by trade union Solidarity.

"Four of the five large commercial banks in South Africa have lowered the cost of virtually all their accounts over the past year, with Nedbank as the only exception," Solidarity said in a statement.

Capitec, whose bank charges were already the lowest in 2010 and 2011, lowered its charges even further in 2012, the Solidarity Research Institute found.

It compared charges for personal bank accounts offered by Absa [JSE:AS], FNB, Standard Bank [JSE:SBK], Nedbank and Capitec [JSE:CPI].

"When the cheapest accounts of the five banks are compared, Capitec's Global One account is still the least expensive of them all," said researcher Paul Joubert.

This account's average bank charges across eight different user profiles amounted to R55,50 a month - a 15.9% decrease from R66 in 2011.

By contrast, Nedbank's cheapest option was its Savvy Electronic account, with average monthly charges more than double those of Capitec.

Nedbank had also increased charges by 4.5% on this account, from R107.79 to R112.61, over the past year.

Bank charges on almost all Absa, FNB, Standard Bank and Capitec accounts were lowered during the year.

The effect of Absa and Standard Bank's comprehensive efforts to make their bank charges more competitive was clearly visible, said the Solidarity Research Institute.

But Standard Bank still levied R16 for creating or amending stop orders.

However, many of its clients would not be affected by this fee.

Without it, the Achiever Electronic's average costs would have been only R85.81, rather than R109.81.

Each of the four largest commercial banks was promoting a low-cost account: Absa's Transact, FNB's EasyPlan, Standard Bank's AccessAccount and Nedbank's Ke Yona.

Standard Bank's AccessAccount is the most expensive of these accounts across the board.

"As far as the low-cost accounts are concerned, the choice is really limited to Capitec's Global One account, FNB's EasyPlan account and Absa's Transact account," said Joubert.

The year was characterised by lower costs and stronger competition.

"It appears that consumers are more informed and are putting more pressure on their banks to offer better value for money," he said.

  • warwick.railton.7 - 2012-10-18 15:48

    They are still way over the world norm, not acceptable.

      mmanonose - 2012-10-19 22:01

      These are my charges from my FNB account, monthly! 2012-10-11 #CASH DEPOSIT FEE 0.00 -32.10 2012-10-11 #SERVICE FEES 0.00 -24.00 2012-10-11 #VALUE ADDED SERV FEES 0.00 -57.75 2012-10-11 #MONTHLY ACCOUNT FEE 0.00 -120.00 2012-10-11 #INCIDENTAL CREDIT FEE 0.00 -57.00 2012-10-11 INT ON DEBIT BALANCE 0.00 -10.98

  • sthembiso.jali.50 - 2012-10-18 15:50

    those startistics are fabricated. im paying a lot of charges on my acc as it stands.

  • gerald.king.589 - 2012-10-18 15:51

    Hey! Nedbnak needs it to fix their chitty little internet banking. Not to mention paying for their ridiculous HQ which takes half of Sandton cbd.

      malcolm.macleod.562 - 2012-10-18 23:47

      Except they won't actually fix it, Nedbank is clearly run by a bunch of technophobes, the last time I complained about a horrible flaw on their internet banking I was told, and I quote "You are the only person to ever complain about our banking, we have done surveys and everybody loves it" - Yes I almost died of laughter as well...

      greg.quinn.353 - 2012-10-19 08:18

      I'd like to know what this flaw is in their internet banking? Been using it for years and been very happy.

  • stephen.j.dickson.3 - 2012-10-18 16:08

    So why wasn't this done years ago already? Cos these pigs just love to fleece the public thats why. Have had us pay more and more charges for lesser and lesser service. And I'll bet the pig CEO's will give themselve's big fat bonuses at year end for coming up with the"new innovative and novel idea of reducing bank fee's" My bloody foot. These swine set their standards of service low and have trouble keeping up. Bloody nyamazuns!!!!!!!!!!

  • gerald.mphuthi - 2012-10-18 16:09

    Now how come i leave money in my account and it dissappears.....?

  • TshilidziPhuravhathu - 2012-10-18 16:13

    Maybe its time I moved from StandardBank and go for the cheaper Capitec...

      nketso.kgwadi - 2012-10-18 17:28

      Come to absa if u open a transact account and deposit R2000 every month into that account you pay absolutely nothing no charges and you withdraw anytime you like and remember ABSA has many branches and ATMs more than any bank.

      greg.quinn.353 - 2012-10-19 08:21

      @nketso ABSA sucks, you can't even recommend that as a bank. I've been with all the banks, Nedbank has given me the best service by far.. phone their call centre.. you never wait more than 30 seconds to get help. I also have a private banker who I can email any time of day any questions I have.

      longile.bongani - 2012-10-20 13:57

      Capitec is by far the best bank service I have received in th is country (Both service and value). I have had all the other 4, they have all been in bed together for FOREVER. The arrival of Capitec is the only reason the other 4 banks have finally realised that they cannot convince the Capitec guys to join their nationwide scam, hence for the first time in this country's history we really got competition. Thank you Capitec and NEVER NEVER capitulate to join the other 4. I hope you continu taking there business at an alarming rate !

  • africanwolf - 2012-10-18 16:14

    Cancel all cash deposit fees in the rest of the world it's free

  • Teuneman - 2012-10-18 16:16

    Like petrol? 15c down, 80c up, 21c down, 65c up...

      Eterni80 - 2012-10-18 16:36

      today the ANC need money for mansion upgrade - 80c up next month they need to pay for year end parties - 90c up - get discount for party goods from China and price 10c down..

  • sharon.dewilzen - 2012-10-18 16:24

    What do you say now, Nedbank?

  • kobus.hattingh.5 - 2012-10-18 16:24

    Capitec is definitely the way to go! I'm very happy I habe switched to them years ago and saved an absolute fortune on bank charges.

  • Eterni80 - 2012-10-18 16:35

    just avoid using other banks atm's as the saswitch fees are INSANE.

  • busisiwebellavita.madonsela - 2012-10-18 16:46

    i am happy with Nedbank, I pay only R117 per month for my everyday account. This fee includes R12 for sms notifications. I am happy because this package covers for unlimited debit orders, unlimited card transactions when doing purchases, I get 4 free monthly withdrawals free at the nedbank ATM. I agree that Nedbank's charges were increased. We must choose a package that suits our individual needs.

      kobus.hattingh.5 - 2012-10-18 17:49

      I have all that and much more for less than have that cost at Capitec. Suggest you compare a bit and realize that you don't have such a great deal after all ;)

      busisiwebellavita.madonsela - 2012-10-19 15:56

      @Kobus.hattingh: I have heard reports about Capitec and FNB having the cheapest costs compared to most banks in SA. To me it is not only about the cost but the overall service I have been getting from my current bank. All banks have got their issues. I can only change from my current bank if there is a bank in SA that offer free banking.

      longile.bongani - 2012-10-20 14:12

      busisiwebellavita, Capitec service is twice what it is at Nedbank. As a new bank the technology is twice as good it seems. You are identified by your finger prints, far more advanced than the old banks. At the end of the day, banking is something we all need to do, not something we want to do, if I want a friendly chat I will go out with my friends thanks. None of the banks allow you access to people that have authority to do anything for you. RElationship managers (i think was the nedbank term) are highly paid, yet have the authority to approve absolutely nothing for you. So it does not help you get a free cup of coffee and a friendly chat, with someone who cannot help you with what you really need. The 4 old banks have been trying their best to justify their exorbatant costs by smiling friendly at you and making you believe it is all about customer service. That is BS, banking is about getting what you need to get done in the quickest and cheapest possible way. Capitec win hands down, every time !

  • Robert Frankol - 2012-10-18 17:07

    Are you 'making things happen' Nedbank? Lol...

  • Shaun McDermott - 2012-10-18 17:13

    Wa Ha ha ha ha!!!! my bank is free..... that is because its in the UK

      longile.bongani - 2012-10-20 14:14

      Dont rub it in Shaun!

  • - 2012-10-18 17:18

    The cheapest rates are if you deposit lots of money every month and you have a cheque account! Like these folks need cheaper banking costs. No breaks for the person who runs on a savings account - specially true of Standard Bank.

  • franco.raffa - 2012-10-18 17:54

    It's like comparing gangsters with gangsters - how do we perform on a global scale?

      longile.bongani - 2012-10-20 14:14

      Not at all !

  • rayno.grever - 2012-10-18 18:04

    The other banks are only lowering their fees now to compete with Capitec Bank (its not because they care about their clients) but because they are losing profit. Why did they not lower their fees long ago, how many years have they been exploiting clients?

      longile.bongani - 2012-10-20 14:16

      My point precisely, they were never interested in their clients, only maximising profits. They could have done away with bank charges decades ago !

  • rufus.manyama - 2012-10-18 19:39

    CAPITEC charges lowest-others rip offs!

  • komorison - 2012-10-18 20:20

    There should be NO bank charges, they make a fortune on loaning you money out!

  • vicky.john.1297 - 2012-10-19 08:05

    Standard Bank induced me to move from Nedbank by offering a "free" subsidiary account. However, it wasn't long before they unilaterally decided that a monthly charge was to be implemented. Really unacceptable business practice! All bank charges suck, as there is no service to speak of.

      longile.bongani - 2012-10-20 14:17

      When you move to capitec, you will kick yourself you did not do it a long time ago

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