FNB is SA's cheapest bank, Standard Bank the most expensive

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broken1

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Article from Finance 24

Finweek did a review of bank charges, and it seems FNB came out tops with the cheapest bank charges, and Standard Bank the most expensive.

Personally, I bank with FNB. I am on the Unlimited Pricing Option, fixed fee...as long as I only use FNB ATM's and electronic banking channels. Suits me perfectly and I am saving quite a bit.
 
Considering how expensive FNB is that is quite a damning indictment of banking fees.
 
I actually started the process of comparing these two and glad someone did the homework for me.
 
supersunbird said:
I wonder if Capitec also features in this or just the "Big 4"?

Dont subscribe to finweek so can't check.
Click to expand...

Capitec need to get with the program and offer an unlimited pricing option.
 
catweasel said:
Capitec need to get with the program and offer an unlimited pricing option.
Click to expand...

Yebo- it's great for beginners. They need to cater to the middle class miser (me) that wants a cheap(free) transactional account. I'll always have a few grand in there that they can use to lend to some other poor oke. For that, they can offer low cast, functional banking- internet and cellphone.

Currently at FNB myself, plus the VirginMoney Credit Card. Tough to beat that combo :)
 
alf101 said:
R5000 + my salary.

They don't give you overdraft, so I make sure I don't go under R5000.
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I started with that too- what does it cost if you go under? How much interest can you earn in a competitive account with a >R5k balance? I was thinking the 5k'd be better 'spent' invested that used to prevent bank charges...

Though, it'd probably be hard to rake in enough interest to cover our ridiculous fees :(
 
Card Commission

Slightly off topic

Anyone know the average rate of commission Banks charge out to merchants for debit and credit card transactions.
It has a lot to do with turnover of course, but as a Merchant myself I am keen to find out the norm in regards to card commission.
 
PayPal

I'm also looking into moving from absa to FNB because FNB has PayPal facilities.
 
"Card Commission
Slightly off topic

Anyone know the average rate of commission Banks charge out to merchants for debit and credit card transactions.
It has a lot to do with turnover of course, but as a Merchant myself I am keen to find out the norm in regards to card commission. " (sorry, forgot to quote)


We get around 2% on visa/mastercard and 1% on debit cards from std bank, Absa about the same. Cash deposit fees are a killer tho...
 
I don't know specifically or recently, but I recall a conversation where the range was quite massive. Something like 1% to 8% depending on your average turnover.
 
3G4me said:
"Card Commission
Slightly off topic

Anyone know the average rate of commission Banks charge out to merchants for debit and credit card transactions.
It has a lot to do with turnover of course, but as a Merchant myself I am keen to find out the norm in regards to card commission. " (sorry, forgot to quote)


We get around 2% on visa/mastercard and 1% on debit cards from std bank, Absa about the same. Cash deposit fees are a killer tho...
Click to expand...
Aah thanks. I suppose you could not divulge your turnover in public?
The average ticket or sale might also be a contributing factor.

Bronzed_Skarab said:
I don't know specifically or recently, but I recall a conversation where the range was quite massive. Something like 1% to 8% depending on your average turnover.
Click to expand...
I know there was a range, but thought the upper end was about 5%.
8% is madness, surely it would not pay the merchant to keep a terminal for that and pay for the monthly rental of the machine.

Extra comment:
I know the owner of a garage in my area. They pay 0.65% on debit cards for fuel. During the Soccer World Cup, Government lifted the restriction on Credit Cards as a means of payment for fuel and apparently by arrangement they got a rate 1.75%. The garage owner stated he does not accept credit cards, but apparently one other Company does, I think he said Total.

/Starting new forum topic on credit and debit card commission here.
 
Thanks for the article, am seriously considering moving all my banking over to FNB. I've been a client with Standard for over 20 years but this didn't make much difference in them coming in a couple points more higher than FNB on my bond.

The only thing that is stopping me is the schlepp of changing all my debit orders over to the new account.

eBucks seems to be quite a rewarding system too.
 
they actually change the debit orders for you, just take a bank statement and highlight your debit orders
 
Fudzy said:
The only thing that is stopping me is the schlepp of changing all my debit orders over to the new account.
Click to expand...
That's what they count on for you sticking with them. Make the effort and show them the finger, FNB will even have the debit orders changed for you.

Personally I'm happy to fork over R90 p/m to FNB for the unlimited option and not have to worry about bank charges. The only thing to avoid is using another bank's ATM (R25 per withdrawal), everything else is included.
 
FNB the cheapest REALLY? I just received my statement for the last 3 months R1198.34 in bank charges? I go into the bank the lady says oh for the last 5 years you have been on a pay per usage plan! Great so when I open my account to save money you take me for every cent I'm worth?

But she says you can go onto the option for only R85 a month and you won't pay R9 every time you have a debit order go off (10 x Debit orders - R90), or R9 every time you draw from an ATM! Thanks you didn't think to review your clients accounts and say hey why don't you switch to the more cost effective option?

Oh and then on the 1st of July the amounts for all charges when up approx R1 per transaction? FNB are crooks, and before anyone says yes you should have checked your statement blah blah blah surely as a relatively long term client who has more than enough funds going through his account a small courtesy call would have been in order? Nope we'd rather rob you of nearly 5k a year to keep your money safe and offer you cents for your positive balance.

But then the women from FNB tells me but you do earn E-Bucks woopdee doo! And that's when I politely said take your account stick it where the sun don't shine I'll go elsewhere!
 
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