Bank charges on savings accounts have soared to 126 percent in some cases, the latest comparison of banking transaction fees by Personal Finance shows. See table
The single biggest transaction increase was on the Saswitch withdrawal fee at Peoples Bank, which has been raised by a whopping 126 percent. Last year, Peoples Bank customers paid R2.94 to draw R300 from an ATM that did not form part of the bank's own network. Currently the Saswitch fee to draw R300 is R6.64 (for balances lower than R2 000) and R5.96 (for balances higher than R2 000).
Furthermore, Nedcor and First National Bank (FNB) will be implementing their annual fee increases at the beginning of November this year.
In the review, the current transaction fees were compared with what the banks charged in June last year and the percentage increases were calculated on a transaction amount of R300.
Some banks charge a sliding scale depending on the amount involved in the transaction, so the percentage increase (or decrease) will differ depending on the transaction amount.
The banks that were included in the review include Absa, First National Bank, NBS, the Nedcor banks (being Nedbank, Permanent Bank and Peoples Bank), Pep Bank, Post Bank, Go Banking (previously Pick 'n Pay Financial Services) and Standard Bank.
Nedbank and Permanent Bank are responsible for the next highest increase. Counter withdrawals of R300 (where account balances are less than R6 000) currently cost R15, which is more than double the R7.30 it cost in June last year.
But Nedbank and Permanent Bank are not the most expensive when it comes to making counter withdrawals. Standard Bank charges a hefty R25 for a counter withdrawal and this fee applies irrespective of the amount of the transaction. So you will be charged R25 whether you draw R10 or R1 000. The second most expensive bank for counter withdrawal fees is Absa which charges R22 if your balance is less than R6 000, and the cheapest is Go Banking which only charges R1.70 at the most to draw money from Pick 'n Pay tills.
If you can, avoid drawing cash from a teller inside your bank as well as drawing cash from a Saswitch ATM - both these methods of drawing money are more expensive than using your bank's own ATM network.
Drawing R300 from your bank's own ATM network costs between R2.40 (at Peoples Bank) if your balance is greater than R2 000 and R6 (at Standard Bank). Compare this to the cost of Saswitch withdrawals which ranges from R5.96 (at Peoples Bank) to R11.20 (at Standard Bank).
ATM charges up
However, even using your bank's own ATMs is getting more expensive. Pep Bank has increased its ATM withdrawal fee (for R300) by 91 percent to R3.05, Go Banking by 87 percent to R4.68, Nedbank and Permanent Bank by 17 and 37 percent (depending on your balance) and Peoples Bank by 14 percent and 29 percent (again, depending on the balance in your account).
FNB has reduced its ATM withdrawal fee from R5.70 (to draw R300) to R3.90 but the balance tier has been increased from R1 500 to R4 500.
FNB has combined its Bob Save savings account with its Bob 2000 transmission account recently.
William Ramwell, the spokesperson for FNB, says the new account, called Smart Account, combines the best of both types of accounts. Bob 2000 customers get better interest rates on higher balances while Bob Save customers get more features and benefits such as debit order functionality and internet banking access. The Smart Account also comes with a Visa Electron debit card.
The Smart Account also comes with a range of free features, including a medical assistance helpline, a medical emergency evacuation and ambulance service, guaranteed hospital admission of up to R2 000; the return of the deceased to their home and legal advice.
Personal Finance was assisted in its research by www.bankmonitor.co.za- an online provider of information about various banking products.