SA's most expensive banks

[The_Pumpkin_King]

Johannesburg - South Africa's four largest banks raised banking fees an average 16% - twice the rate of inflation - in the past 12 months.

This is according to the Bank Charges Report, an annual bank fees study commissioned and published by Finweek, a weekly financial magazine.

Clients of Absa, the country's largest retail bank with 11 million users, suffered the worst of the fees increases. It upped fees on the pay as you transact (PAYT) basis by 18%. This is the second consecutive time Absa has topped the fees-increases league.

"Perhaps more ominous is that fact that since our research was first published in 2005 Absa's fees have increased by an astonishing 69% on a PAYT basis and 39% on its package option," said Finweek in its commentary to the bank fees study.

Standard Bank charged its clients 15% more year-on-year on a PAYT basis and an extra 10% for its package option.

First National Bank upped its fees by an inflation-busting 21% on the PAYT and package basis after posting conservative, single-digit increases in previous years.

Nedbank, which charged the highest fees in 2005, had not made inroads into market share despite a concerted effort to reduce its fees, Finweek said.

Its PAYT fees remain 6% below its 2005 levels while package fees are 39% down on the amount charged in that year.

Efforts to simplify bank literature, the way in which they inform clients of fees increases, was mixed by the four banks which control about 90% of the country's banking sector.

"We believe Nedbank and Standard Bank have succeeded most in making their brochure simpler and easier for us to use," said Terence Hatzkilson, a director at Howarth Forensics which compiled the report for Finweek.

The good news is that shareholders of the big four banks will be comforted by their continued pricing power against which the Competition Commission appears helpless.

http://fin24.com/articles/default/display_article.aspx?Channel=News_Home&ArticleId=1518-1786_2551685&IsColumnistStory=False

 

[foozball3000]

 

[Chris_H]

Fook me! I'm moving from ABSA Bank this month! Best of all, I have never been notified of any increases in the last 4 years :/

 

[blaaislaai]

Im sticking with the popular bank, more ATM's available around the country.

 

[w1z4rd]

Im glad I am not with ABSA.

 

[Old_Username]

I cannot stand the fact that the banks don't send notifications to let us know! They always sms about stupid competitions but not about important stuff like this :/


Oh and as surprised as I am, I'm even more shocked that PK posted a serious thread for once Shot for keeping us in the loop!

 

[Hot_Chocolate]

that is a lot of money!! thank goodness I moved to a smaller bank 3 1/2 years ago. I don't pay monthly bankfees, but only pay when I use my account. Also, none of this have to have minimum amount of R50 in the account...

 

[nkpza]

Ridiculous

How f**king ridiculous is this? This is your money in the first place for which you worked bloody hard. You then give the banks the privelege of control over your money when you deposit it with them. They shouldn't charge a cent. They should live off whatever they earn using the money. All txan's should be free too. After-all it is your money in the first place. They are charging you for access to your own money. Pricks

Yah, pipe dream I know....

 

[Jweb_@@]

I moved to Capitec about a year. My total savings, which includes interest, amounts to ~ 300 per month. Best decision I've ever made.

 

[Stokstert]

Anything with a name starting with an A, like ABSA, ANC relates to daylight robbery.

 

[diabolus]

Just apply for a home loan at all 4 big banks , that's how you find out what loyalty means .

ABSA biggest arses of them all, i bank with them but they give me the worst solution, i told the bond originator straight off the bat to exclude them if ABSA is not going to put in any effort into offering a solution to someone who's been with them for more than a decade..(i wasn't declined, the deposit+rate option they offer is a slap in the face)

FNB and Standard , you can see they're eager to grab some clients, good solid deals coming from them....and i don't even bank with them.

Nedbank seems to be floating in their own little universe, coming up with silly interest rates of 10.8% when the Prime rate is 10.5% [it's accepted to at least get a rate BELOW prime for a home loan] . At least they're fast and overall seem to have a good deal if you can get that interest rate down.

So, hell this enough to encourage me to change banks...

 

[LCBXX]

FNB befarked a lot of their customers with the 2009 price increases. Throughout 2007/8, they tried to get customers on higher graded account, such as gold/platinum status, without any additional increase in fees.

Come 2009, the gold/platinum account fees increased by nearly R10-minumum on some pricing options and you cannot downgrade anymore.

 

[BrrIan]

Were they not also retrenching staff while continuing to make huge profits? Organisations like banks will bleed the public dry if governments do not step in to reign them in. This is true anywhere in the world.