Transaction fees on savings accounts have shot up dramatically at some banks, the latest review on bank charges shows.
In many cases, banks have dealt customers a double blow, because not only have the actual costs increased, the levels at which the costs kick in have been decreased.
Click here to view the table of What the major banks charge you for savings account transactions and The annual interest rates paid on savings accounts. These tables are prepared by Netchoice, an independent provider of comparative information on financial products. For a comprehensive listing of charges across a wide range of banks visit www.bankmonitor.co.za.
The bank that has hit its customers hardest is Nedbank, which has upped its balance inquiry fee at a bank counter by a massive 280 percent - from R1.50 to R5.70.
Not only has the charge increased but the threshold level has gone up, subjecting you to a double dose of increased costs.
Previously you were charged R1.50 for a counter balance inquiry if your balance was below R2 000. The balance level has been raised to R3 000 which effectively means that the fee kicks in R1 000 earlier.
Transactions have been subjected to big fee increases for most banks, ranging from as low as three percent to the massive 280 percent charged by Nedbank.
Other banks that have implemented steep increases of more than 100 percent include the two other banks in the Nedcor stable, Permanent Bank and Peoples Bank, as well as BoE Bank.
BoE Bank holds the ignoble honour for implementing the second highest increase in the review. The bank now charges up to R9.76 for a simple balance inquiry which is made at a Saswitch ATM. BoE has also raised its own ATM withdrawal fee by 140 percent if the balance on your account is below R3 000.
The fee for withdrawals from a Saswitch ATM at Peoples Bank (on a Powersave Account) has been increased by 133 percent for balances lower than R1 000. The bank has also introduced a fee for Saswitch ATM withdrawals for balances over R1 000. Previously this transaction was free.
If you have a Permanent Bank special savings account, the two largest transaction charge increases you face are for counter withdrawals and for balance inquiries on the bank's own ATM network.
Counter withdrawals now cost a minimum of R13 plus R1 for every R100, which represents a 119 percent increase on a withdrawal of R300.
Obtaining a balance from the Permanent Bank's own ATM network will set you back 162 percent more.
Previously this transaction cost you R1.50 (for balances below R2 000) while inquiries for accounts with a balance of over R2 000 were free.
You will now be charged R1.65 if your average monthly balance is R3 000 or more. Otherwise you will be charged R3.93 for every inquiry.
Some banks have decreased charges on certain transactions. For instance, First National Bank has dropped its counter withdrawal fee for balances under R4 500 by 79 percent, but the fee for accounts with a balance of over R4 500 has increased by 20 percent.
BoE has decreased its counter withdrawal fee. Previously you were charged a flat rate of R12 where your balance was less than R3 000. A sliding fee now applies to transactions where balances are less than R3 000, which is R5 plus R1.10 for every R100, with a maximum of R21.
The end result is that you will pay less than before for smaller withdrawals but could end up paying almost double the old fee for withdrawing larger amounts. You will start paying more than the old R12 for withdrawals of R700 or more.
Note:
Where a sliding scale charge formula applies, the percentage increases are calculated on a transaction amount of R300.