Absa Bank is increasing its transaction fees from the beginning of next month, and account holders should prepare themselves for increases of up to 186 percent.
It is especially the over-the-counter transactions fees which will become seriously expensive as the bank encourages you to use automatic teller machines (ATMs) and other electronic means to do your banking.
Brendan O'Donnell, the managing director of Absa, says Absa reviews its fees on a regular basis like any other business and an increase could not be avoided.
The cost increases to the client have been kept as low as possible and a marketing campaign on how to minimise bank charges has been launched to help clients reduce the cost of banking, he says.
If your monthly account turnover is R7 000 and you make four withdrawals, four balance inquiries, five provisional statement inquiries, three transfers, four account payments and have five debit orders, you can save yourself more than R100 every month by using electronic channels instead of the branch teller, he says.
Savings accounts
Account payments made over the counter which now cost R4.28 a transaction will increase by 157 percent to R11 from the beginning of April.
Transfers done at the counter will also cost R11 for every transaction from the existing fee of R3.85, representing a 186 percent increase.
Debit orders and stop orders increase by just over one percent from R3.75 to R3.80.
Cheque accounts
Cheque service fees will be hiked from April. For example, the basic cheque package (Silver) service fee formula is R2.49/R1.28/R21.40 but from April it will be R2.75/R1.28/R21.40. The effect of this is that a R250 cheque which currently costs R5.05 will cost R5.31 - an increase of just over five percent.
The formula means you will pay R2.75 for the first R100; R1.28 for every hundred after that, and the maximum you can be charged is R21.40. The new service fee for Gold account holders will be R2.25/R1.20/R21, and Platinum account holders' service fee will be R1.70/R1.25/R22.
To qualify for a rebate on your service fees from next month, you will have to keep R4 500 in your account. This is 50 percent more than the current rebate level of R3 000.
A 20-page chequebook will cost R6.50 or 10.36 percent more from April. When it comes to cheque account transaction cheques, the biggest increase has been slapped onto cash withdrawals over the counter. This fee increases from R11.30 to R15 - which is almost 33 percent more than you are currently paying for this transaction.
Requesting a special clearance on a cheque that you have paid into your account will cost you R35 or almost 15 percent extra.
Absa is also changing the way it charges you for debit orders. Presently you are charged a flat fee of R3.75 for every transaction, but as from April you will be charged according to your cheque service fee formula. On a Silver account package, a R250 debit order will cost you R5.31, on the Gold package R4.65 and on the Platinum package R4.20.
Stop order charges increase from R3.75 to R3.80, or by just over one percent for every transaction.
ATM costs
ATM charges increase by 10 percent or less depending on the transaction. For instance, account payments at an Absa ATM, as well as transfers at Absa ATMs - both transactions which currently cost R2 - increase to R2.20.
As far as cash withdrawals are concerned: A R250 cash withdrawal increases from R3.40 to R3.74 (10 percent up) while a R250 cash withdrawal from a Saswitch ATM goes up from R8.10 to R8.74 (eight percent).
If you have an ActiveSave account the charge threshold increases by 80 percent from R2 500 to R4 500.
Internet and telephone banking
The increases in transaction charges on internet and telephone banking are generally much lower than the other transactions.
The monthly internet fee (which allows you to use telephone banking as well) has been raised from R11.97 to R12. If you use telephone banking only, your existing monthly fee of R8.98 goes up to R9.
Account payments over the internet or telephone increase from R1.88 to R2, transfers go up from R1.50 to R1.65 and the cost of statement remains R1. The first five statements per month you ask for are free.
* Call the toll free line 0800 41 41 41 or visit the Absa website at www.absa.co.za for comprehensive details on the price increases.
TIPS FOR ABSA CLIENTS
* Instead of doing your banking at a branch, use electronic banking methods such as Absa ATMs, telephone and internet banking, which cost less;
* Use your bank's own ATMs to avoid paying additional Saswitch charges;
* Statements, balance inquiries and cheque deposits at Absa ATMs are free;
* Avoid stopping payments. It will cost you up to R18.30 each at the branch or R13.92 via telephone banking;
* Take good care of your ATM, debit and credit cards and keep a record or your PIN (personal identification number) - they cost up to R54 to replace;
* Do not issue or deposit a post-dated cheque - it will set you back R45;
* Use your Absa debit card to pay for purchases at Maestro-linked or Visa E-linked outlets. It's cheaper than issuing a cheque and safer than carrying cash;
* If you overdraw your limit, issue a cheque without the necessary funds in your account or fail to make allowances for stop and debit orders to go off your account, you will be charged a penalty fee of R70;
* Ask your bank about special offers such as the exemption on charges for over 55s;
* Ask about the various cheque account fee options and select the one that will be the most effective for you;
* Pay the amount due on your credit card in full before the payment due date to avoid paying interest charges;
* Pay your credit card electronically by debit order, or as a last resort by cheque deposit into an Absa ATM rather than at a branch;
* Keep a positive balance in your credit card account. Not only will you avoid paying interest charges, you will also earn interest.
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