Absa defends its banking fees

2011-10-21 11:52

Absa Bank defended its relatively high banking fees, saying today that it focuses on “value for money, rather than price”.

“We believe there is sufficient evidence that we provide value to our customers with choice, convenience, accessibility and security,” a statement said.

This followed a banking fee survey by trade union Solidarity, which declared that Absa was one of the two most expensive banks in South Africa, followed by Standard Bank.

Absa said it welcomed any report that drew attention to the fact that customers had products best suited to their needs, and that these needs changed over time.

“At Absa, we know that no two customers are alike and therefore we have online fee calculators and highly trained staff who can advise customers on their individual and unique transactional needs.”

Customers’ needs went beyond just a transactional account – such as car and home finance, and lending – and Absa considered these aspects when giving advice.

Their customers also had the benefit of their relationship with global group Barclays, which helped do business globally. “At Absa, we focus on value for money rather than absolute price.”

With more than 8 700 self-service terminals, its network was 28% larger than their nearest rival, said Absa. “Convenience, accessibility and safety are factors that are very easily overlooked in reports of this nature.”

The Solidarity Research Institute compares the bank charges of the various personal bank accounts offered by the country’s five large commercial banks – Absa, First National Bank, Standard Bank, Nedbank and Capitec.

Capitec’s Global One account was found to be the cheapest. “The average bank charges of this account over eight different user profiles amount to R67.35 a month and have not been increased since 2010,” Paul Joubert, senior researcher, said yesterday.

“Absa’s cheapest option, the Silver Package account, has average monthly charges that are more than double that of the Capitec account. The charges also rose by 8%, from R140.90 to R152.15, between 2010 and 2011,” he said.

FNB’s cheapest account was the Smart Unlimited, with a monthly bank charge of R73.10. Nedbank’s cheapest was Savvy Electronic account at R105.04 monthly.

The cheapest Standard Bank account was its Classic Cheque fixed fee account at R133.43. These costs were calculated using an average of eight transactional profiles, and excluding minimum balances and the effect of interest.

Capitec also has the least expensive transmission account – an account without an overdraft facility. However, when linked to an overdraft, a chequebook and a credit card, FNB offers the cheapest current accounts, according to the report.

Business accounts were not included in the comparisons and the analysis of the bank charges was based on various hypothetical scenarios.

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
Comments have been closed for this article.

Inside News24

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


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.


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.