Union Solidarity has released the 7th edition of its annual banking charges report, showing the cheapest and most expensive banking options across the major retail banks in South Africa.
The report is based on monthly banking fees from South Africa’s five biggest banks (Standard Bank, Absa, Absa, Nedbank and Absa), across four client profiles.
Each profile represents a different type of banking customer, and covers a different number of transactions (from a basic 12 transactions, to a comprehensive 30 transactions).
Further, the bank accounts are separated into two groups, namely those marketed at low-income groups and those marketed at middle-income groups.
The profiles have been compiled in-line with the banks’ promotional claims and account goals – namely limiting cash withdrawals, choosing internet services over physical branch visits and no overdraft or international transactions.
According to the report, Capitec Bank has ‘generally’ emerged as the cheapest bank for the needs of most people, though competition from the other four banks is becoming stronger.
Low Income (12 transactions)
#BankAccount12 Transactions cost
1CapitecR5 000 balanceR11.29
2CapitecR2 000 balanceR24.34
4FNBEasy Account – PAYTR27.85
6Standard BankAccess – PAYTR31.59
7CapitecR0 balance (No interest)R33.05
8FNBEasy Account BundleR50.90
9NedbankKe Yona BundleR70.10
10Standard BankAccess PlusR85.60
Low Income Sophisticated (17 transactions)
#BankAccount17 Transactions cost
1CapitecGlobal One (R10 000 balance – R43.53 interest)R5.72
2CapitecGlobal One (R2 000 balance – R8.71 interest)R40.54
3AbsaFlexi Value BundleR57.40
Middle Income (25 transactions)
#BankAccount25 Transaction cost
1CapitecGlobal One (R10 000 balance – R43.53 interest)R30.52
2CapitecGlobal One (R2 000 balance – R8.71 interest)R65.34
3Standard BankElite PlusR100.25
4AbsaGold Value BundleR102.00
5NedbankSavvy Plus (alternative profile)R104.00
6FNBGold Cheque UnlimitedR104.75
7NedbankSavvy PlusR108.00
8Standard BankElite PAYTR168.15
9AbsaGold PAYTR238.75
Upper-middle Income (30 transactions)
#BankAccount30 Transaction cost
1AbsaPlatinum Value BundleR163.80
2NedbankSavvy BundleR180.00
3FNBPremier: UnlimitedR182.20
4Standard BankPrestige PlusR185.30
5Standard BankPrestige PAYTR207.70
6FNBPremier PAYTR285.25
7AbsaPlatinum PAYTR286.60
According to Solidarity, there has been a phasing out of pay-as-you-transact accounts in favour of bundle accounts, particularly for middle and upper-middle income profiles.
At 25-30 transactions a month, a PAYT option works out to be more expensive, and bundles are the more cost-effective route. While account fees have stayed the same, PAYT fees have increased.
The general bundle fee has been relatively stable at around R100 for the past three years, which is a positive occurrence, as it means most bundle users have experienced decreasing costs, in real terms, Solidarity said.
Comparing bundle accounts, Standard Bank comes out on top, the report showed.
#BankAccountFixed feeAverage cost (all profiles)
1Standard BankElite PlusR95.00R99.20
2AbsaGold Value BundleR98.00R101.20
3NedbankSavvy Plus (alternative profile)R100.00R103.00
4FNBGold Cheque UnlimitedR100.00R103.80
5AbsaPlatinum Value BundleR159.00R162.20
6FNBPremier UnlimitedR175.00R179.80
7NedbankSavvy BundleR180.00R180.00
8Standard BankPrestige PlusR179.00R183.20
Source: businesstech