SA bank withdrawal fees compared

[rpm]

SA bank withdrawal fees compared

With FNB's 2014/15 banking fees set to kick in on 1 July 2014, which South African bank charges the least to withdraw from a middle-market account?

 

[Gatecrasher]

Excepting Standard Bank and Nedbank, the withdrawal fee increases at native ATMs work out to be higher than South Africa’s CPI, which at the end of the first quarter of 2014 was at 6.1%.

There should never, ever, ever, ever, be an "inflation adjusted" increase in a fee that is effectively a fixed % rate of an underlying transaction value. A fixed % rate covers all the effects of inflation without requiring any adjustment. What if the government increased VAT from R140 per R1000 every year to "cover the effects of inflation". Before too many years have passed VAT would be greater than 100% of the value of the goods.

Inflation cannot be used as an excuse to increase % fee rates. An increase in a % rate is simply an increase and absolutely nothing whatsoever to do with inflation.

 

[supersunbird]

There should never, ever, ever, ever, be an "inflation adjusted" increase in a fee that is effectively a fixed % rate of an underlying transaction value. A fixed % rate covers all the effects of inflation without requiring any adjustment. What if the government increased VAT from R140 per R1000 every year to "cover the effects of inflation". Before too many years have passed VAT would be greater than 100% of the value of the goods.

Inflation cannot be used as an excuse to increase % fee rates. An increase in a % rate is simply an increase and absolutely nothing whatsoever to do with inflation.

Great post and so true.

One can draw R2000 with Capitec card at any ATM and still pay only R7.30, it's great. If Capitec ever stops that then I will just load positive balanced on my VirginMoney credit card and use that at R10 EDIT: I see its R14 now, still reasonable..

 

[Fingolfin]

There should never, ever, ever, ever, be an "inflation adjusted" increase in a fee that is effectively a fixed % rate of an underlying transaction value. A fixed % rate covers all the effects of inflation without requiring any adjustment. What if the government increased VAT from R140 per R1000 every year to "cover the effects of inflation". Before too many years have passed VAT would be greater than 100% of the value of the goods.

Inflation cannot be used as an excuse to increase % fee rates. An increase in a % rate is simply an increase and absolutely nothing whatsoever to do with inflation.

I too thank you for this post. It's getting really difficult keeping track of all the ways we can be screwed over...

Ah well...money's not real anyway...