Selected internet banking transaction charges have been increased by up to 120 percent and telephone banking charges by up to 107 percent, the latest review of transaction costs shows.
A snap analysis of the charges prepared for Personal Finance by Bankmonitor indicates two trends: banks are differentiating between transactions done at the same bank and transactions done across banks with same bank transactions being cheaper or even free. Also, in telephone banking, the costs of doing transactions using the fully automated telephone prompt system is lower than if you opt to speak to a telephone consultant. To view the charges, visit www.bankmonitor.co.za
Overall, telephone and internet banking offer a convenient way to bank without physically dragging yourself to a bank branch or ATM. Of course, you cannot draw or deposit money over the internet or the telephone, but a wide range of transactions can be done using these two channels.
Generally, transaction costs for internet banking and telephone banking are cheaper than other channels, such as doing transactions at the counter inside your bank or even using an ATM.
Since Personal Finance last reviewed the costs of internet and telephone banking in June this year,NBS and First National Bank (FNB), and Standard Bank have increased their transaction fees for internet banking.
The same three banks and Nedbank, have adjusted their telephone banking fees since the review was last published on June 9.
Internet banking increases
NBS has increased its transaction costs for transfers from a cheque, credit card or savings account to an account that is not held at NBS (external transfers) by 120 percent.
Earlier this year the fee for such transfers was R1 for every transaction. Now you are being charged R2.20.
Transfers between accounts at NBS are still free. These are referred to as internal transfers.
FNB also distinguishes between internal transfers and external transfers. The fee for internet transfers from a cheque account to an account at another bank has been increased by 17 percent to R2.75 for every transaction, while the fee for internal transfers has been decreased by six percent to R2.35. Payments from your cheque account to a third party have gone up by 10 percent.
Standard Bank has raised its fee for payments from a cheque account by 52 percent to R2.20.
Telephone banking increases
Nedbank has upped its monthly service fee for telephone banking by 107 percent, from R5.70 to R11.80, since June this year.
It has also increased the fee for transfers between accounts held at Nedbank by 19 percent from R1.85 to R2.20 if your balance is less than R4 000. For an account with a balance of more than R4 000, transfers are free.
FNB has decreased its fees for transfers between accounts at the same bank and for account payments (from your account to the account of another person or organisation) by 12 percent each.
Transfers between accounts at the same bank now cost R2.06 and account payments R2.19.
FNB also now charges you a monthly service fee of R22.80 for telephone banking, in addition to the R22.80 that you are charged monthly for internet banking. Previously a single monthly fee of R22.80 applied to both internet and telephone banking.
At Standard Bank, if you ask for a statement to be faxed to you, you will be charged R4.80 for the first page and R0.50 for every page thereafter. The fee for subsequent pages has been upped by 37 percent to R0.50.
In many cases, Personal Finance has found banks reluctant to say what their service fee formula is. The service fee you are charged, they say, is negotiable. We consistently push the banks to provide us with the maximum service fee they charge so you have an idea of how far from this level your service fees are, so the message to you is to negotiate.