I’m normally not the most astute person when it comes to checking monthly bank charges and statements.
Well the other day I got a call from ABSA asking me if I would like to change my account to one which offers a flat rate of charges for certain transactions, rather than a charge per transaction. To assess the viability of this I checked my monthly charges, and found that 66% of my costs incurred was due to atm withdrawals. So lesson learnt here is to rather utilise credit card instead of cash.
Don’t you find it rather insolent that the banks charge us to use internet banking, thereby reducing their overheads?
Anyway, I digress.
The reason for the post, is that whilst in discussion with the bank, they asked me if I would like to transfer funds (not a lot) from my savings account to a “money builder account” where I could earn a 4.2% interest rate on savings as long as I had more than R60k in the account. This was because the savings accounts incur a zero % interest rate. I was dumbstruck. I naturally assumed a savings account would earn the highest rate of return – it’s savings after all! Well some other ABSA savings account holders I queried, were also surprised to learn that there is no interest on savings accounts. Good marketing ABSA, you got me on that one…
Doesn’t it irk you that ABSA charges you an annual fee to use your credit card, whilst they make money every time you use it?
So, lessons learnt:
Move funds out of ABSA savings accounts to an interest bearing account. In my case this will be into my Virgin Money account, where I earn 3.5% interest irrespective of the (positive) balance.
Ditch ABSA credit card in favour of a credit card that doesn’t cost you money – in my case this will be a virgin credit card.