Charges: Capitec still the cheapest

2013-08-21 00:00

CAPITEC still offers the cheapest mainstream account, while Absa’s Silver Value Bundle is the cheapest current account over four tested user profiles.

These findings stem from Solidarity’s fourth annual report on bank charges, which was presented yesterday in Centurion by the Solidarity Research Institute senior researcher Paul Joubert.

The report compares charges for personal bank accounts offered by Absa, FNB, Standard Bank, Nedbank, and Capitec. Apart from finding that monthly bank costs have started to stagnate at an R80 to R100 level, Joubert said that there was a trend at banks to market bundled accounts with fixed fees rather than accounts on which clients had to pay a charge per transaction.

He warned that cash withdrawals from ATMs are not normally included in bundle account fees and can increase bank fees to a significant degree. Capitec charges the lowest fees for an ATM withdrawal at R7 per transaction, irrespective of the amount drawn.

Other banks’ ATM charges for R500 cash range from R12,80 at FNB; to R15,45 at Standard Bank; R15,70 at Absa; and R15,75 at Nedbank.

To withdraw R2 000 from an ATM, a Nedbank client will pay R34,50 in fees; an Absa client R32,95; a Standard Bank client R31,20; and a FNB client R25,50, while a Capitec client will still pay R7.

The report said FNB had lowered its ATM charges after being identified as charging its clients the most for this service last year.

Joubert said banks had no reason to fine clients for unsuccessful debit orders, which fines range from R10 to R138. He said banks are in no way disadvantaged if a debit order does not go off.

According to the report the cheapest mainstream account in 2013 is Capitec’s Global One Account, which costs consumers R52,02 monthly, followed by FNB’s Smart Unlimited at R53,20 monthly.

Absa was third with its Silver Value Bundle at R82 per month, Nedbank’s Savvy Current was R97 monthly, and Standard Bank’s Elite Plus account charged R102,40.

Joubert said FNB significantly decreased the fees of its Easy Account this year to target low-income consumers. He said FNB beat Capitec on cost on this level for the first time after Capitec’s success in this market. The full report is available at solidarityresearch.co.za.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.