South African banking fees made easy
South African banking fees made easy
There are many things you need to consider when choosing a bank, like how easily you’ll be able to access your money, how many ATMs you have in your city or what type of internet and mobile banking options the bank gives you.
But the most important thing you need to check is the cost of using the bank. Read on to find out how much banks charge you, so that you can choose the one that’s right for you...
- A comparison of South African banking charges
The four major banks in South Africa are Absa, Standard Bank, Nedbank and FNB. Capitec Bank is growing quickly and giving the four big banks a run for their money. Let’s look at how each of these banks compare in terms of banking charges.
In January 2016, three of the five banks increased the fees. The breakdown below works on the assumption that you’re making R1,000 transactions.
|
Withdrawal |
ATM Deposit |
Debit order |
Debit order |
Account Fee |
|
|
Absa |
R 16.95 |
R 16 |
R 0.00 |
R 15.50 |
R 40 |
|
Standard Bank |
R 16.00 |
R 14.00 |
R 4.20 |
R 13.10 |
R 55.00 |
|
FNB |
16.95 |
R 7.00 |
R 3.70 |
R 16.00 |
R 100.00 |
|
Nedbank |
R 17 |
R 11.60 |
R 6.00 |
R 15.00 |
R 30.00 |
|
Capitec |
R 5.50 |
R 8.00 |
R 0.00 |
R 0.00 |
R 5.25 |
As you can see, Capitec beats all the banks in terms of its fees. It offers the lowest charges on personal accounts compared to the other banks. It is also important to note that Capitec is the only bank that offers its clients interest on positive balances.
Before making a decision on costs, test the level of service you’re likely to get from each bank. Walk into a branch and ask for brochures, speak to the bank representatives and ask all the questions you need answered.
- If you’re still studying, consider a student account
The big four banks all offer bank accounts for students:
- Standard Bank Student Achiever Account
- No monthly fees
- Nedbank Dezign Student Current Account
- Monthly fee R16.50
- FNB Life Start Student Account
- Monthly fee R22.30
- ABSA Student Silver Current Account
- Monthly fees R16.00
You’ll also be charged a different withdrawal fee for each bank. Standard Bank offers the first five withdrawals free. After that you’ll pay R20 for every 15 transactions. Nedbank, ABSA and FNB have similar charges.
- Be careful of using another banks ATM
Make sure that the bank you choose has ATMs in your vicinity. The banks take more money when you use a rival’s ATM machine. So watch out for these charges:
- FNB charges R6.50 and 1.26% of the total withdrawal amount
- ABSA will cost you R9.95 and 1.15% of the transaction
- Standard Bank charges around R6 to R9 and 1.15% of the withdrawal
- Nedbank charges R9.50 and 1.12%
Check your bank statements closely. Make sure that you’re not paying too much for your banking. Make sure that the bank you’re with makes your life convenient. All the big banks have online banking, so check for things like banking applications and what type of transactions you need to perform.
Important Note: Every year banks change their fees. Make sure that you understand exactly what you’re paying for.