Banks now offering cheaper accounts

How much is your bank account costing you and what exactly are you paying for?

In the face of the current economic climate which has forced consumers to tighten their belts amid rising food and electricity prices, banks are now offering new, cheaper bank accounts aimed at the low- to middle-income earners.

The Saturday Dispatch looked at the bank charges from three different banks – Standard Bank, Capitec and First National Bank (FNB) – providing a breakdown of what a savings and cheque accounts aimed at low- to middle-income earners cost.

At FNB, an Easy Account costs R4.95 per month, while a Gold Cheque Account costs R100.

Easy Account customers qualify for free InContact notifications, balance enquiries, mini statements, card swipes, cash-at-till withdrawals, scheduled transfers, debit orders, electronic transfers and a free linked savings pocket.

Apart from the free services offered, customers are charged amounts which include:

lR3.50 for scheduled payments;

lR3.50 for debit orders; and

lR0.50 per R5 in airtime purchases.

At Standard Bank, an Easy Account for a “Pay As You Transact” account costs R4.99 a month, offering customers the same free services offered at FNB.

An Access Account Plus, which costs R59 a month, charges customers for transactions which include:

lR16.80 to establish a stop order;

lR31.50 for a cash deposit inside the branch; and

lR130 for a debit card replacement fee.

FNB’s value banking solutions chief executive Ryan Prozesky said the Easy Account gave customers an option of two different pricing plans to choose from.

“The ‘Pay As You Use’ pricing option caters for customers that prefer to pay for each transaction. These customers would either be low transactors or seasonal workers with irregular income,” Prozesky explained.

“Easy account customers are also able to take up the Easy Bundle option which is R49 per month. In addition to the charges listed above, this option gives the customer 10 free qualifying electronic transactions such as debit orders, payments, pre-paid airtime purchases as well as four free FNB ATM cash withdrawals per month. Customers also get free cash deposits to the value of R4000 per month when deposited at an FNB ATM with cash deposits. This option is suitable for the medium transactor.”

Capitec’s Global One account charges customers R5.25 per month. Free transactions include airtime purchases and viewing transaction history, although customers are charged for:

lBranch deposits which cost R1.70 per R100; and

lWithdrawing cash from other bank’s ATM’s at a cost of R8.50.

When sent questions, Capitec spokesman Charl Nel referred the Dispatch to the Solidarity Research Institute’s Bank Charges Report of 2016, which hailed Capitec as the cheapest bank in South Africa.

The report reads: “Capitec generally still emerges as the cheapest bank for the needs of most people, although there continues to be strong competition from the other banks ... Capitec is sticking to the formula that has seen it shake up retail banking in SA.” — zisandan@dispatch.co.za