There are disadvantages to banking fees, such as being charged money for not having enough money in your account. A person can’t even afford to be broke these days. And there are many other pitfalls to avoid – which can become incredibly complicated – but it’s important to know exactly what you’re paying for and why. Ignore the fine print at your peril.
Like any other business, banks charge a fee for their wide range of services. These fees are called a bank charge or a service fee, and every bank has its own way of doing things. So, depending on the type of account you need and how you’ll be using it, it’s a good idea to compare all reputable banks in South Africa and their different rates – this will help you make an informed decision when choosing which package to go with.
These services could include ATM withdrawals, cash deposits, personal loans, account maintenance, access to an overdraft, chequebooks, statements, lost cards and foreign exchange and so on and so forth.
We took a look at the 2019 banking fees announced for SA’s Big 5 banks – ABSA, Capitec, FNB, Nedbank and Standard Bank – as well as Bidvest’s new Grow account and Old Mutual’s Money Account.
The tables below provide details on the most common fees, being Withdrawals, Deposits, Debit Orders and Account Fees. 2019’s fees are compared to 2018’s, taking the 1% VAT increase into account, and the accounts used – ABSA’s Gold Cheque Account, Capitec’s Global One, FNB’s Gold Cheque Account, Nedbank’s Savvy and Standard Bank’s Elite – are all mid-market accounts, where valid.
Calculations are based upon a R500 transaction, which is the most common range for cash-based transactions in South Africa.
A notable change is that fees are now being rounded to be in line with the new VAT rate, which has caused a slight decrease in certain prices – and absorbed by hikes elsewhere.
For more information on charges and pricing covering different account types, we’ve provided links to each bank’s full fees structure as well.
ABSA’s full 2019 pricing can be found HERE.
For Internal Debit Orders, ABSA, FNB and Nedbank don’t charge anything at all.
Capitec’s fees will be updated in February 2019. The full 2018/19 pricing guide can be found HERE.
Capitec and FNB have the cheapest ATM Deposit fees per R500 transaction – only R4.75.
First National Bank will update its fees in June. FNB’s full 2018/19 pricing guide can be found HERE.
Capitec and FNB have the cheapest ATM Deposit fees per R500 transaction – only R4.75. For Internal Debit Orders, ABSA, FNB and Nedbank don’t charge anything at all. Likewise, FNB and Nedbank don’t charge for External Debit orders either.
There has been a significant reduction in some of Nedbank’s fees, bringing them more in line with the competition. Nedbank’s full Savvy Plus 2019 pricing can be found HERE.
Nedbank has the cheapest Withdrawal (Pos) fees – absolutely free across the board. For Internal Debit Orders, ABSA, FNB and Nedbank don’t charge anything at all. Likewise, FNB and Nedbank don’t charge for External Debit orders either.
Nedbank has the most expensive Account Fee – at R110.00.
Standard Bank falls more or less in the middle with pricing – neither the cheapest nor the most expensive. Standard Bank’s full Elite 2019 pricing can be found HERE.
Bidvest’s Grow account has only just launched and is meant to replace the current transactional account. The 2019 fees below are compared to the 2018 fees of the latter account. The full Bidvest Bank Grow fee schedule for 2019 is available HERE.
Bidvest has the cheapest Withdrawal (Native) fees per R500 withdrawn – only R6.00.
The fees stated below for Old Mutual’s Money Account are already in effect, as of October 2018. You can review the full Old Mutual Money Account fee schedule for 2018/19 HERE.
Old Mutual has the cheapest Withdrawal (Other) fees per R500 withdrawn – only R8.50. For the all-round account fee, Old Mutual is the cheapest at only R4.50, followed closely by Capitec with R5.75.
Taking the monthly cost of the bank account into consideration is all fair and well, but it’s also important to take your personal transactional needs into consideration. It’s important to choose the right account or package for your needs.
In the above tables, each bank has listed the fee associated with native withdrawal – this refers to withdrawals made from ATMs belonging to those banks. If you’re with Capitec, for example, use Capitec ATMs. In some cases, such as with FNB, Bidvest or Nedbank, withdrawing funds from ATM’s belonging to other banks could cost you almost double.
Finally, go digital when you can – use online banking or banking apps – and avoid penalties and overdrafts and all costs. Make sure you have enough money in your account to cover these fees every month.