Saving on bank charges

[.geek]

Cape Town - Banks refer to them as NIR or non-interest revenue, but most people have a favourite four-letter word to describe bank charges.

Given the emotion they evoke, it's not too surprising that research by Old Mutual Bank shows that bank charges are the single most influential factor in determining the extent to which a bank appeals to its customers; significantly ahead of issues such as helpful staff, image and service.

Set a benchmark: Compare your statements for a three-month period, list the types of transactions and charges and divide by three.

"This will give you an average cost per month, which will give you some basis for comparison, and will also give you an idea of where you're racking up charges.

Once you know the kind of services you use most and how much you're paying for them you're better able to see if there's a package that provides what you need at a better price.

It pays to be sure about your requirements as packages usually specify the number and type of transactions you are allowed for a given fee; for example cash withdrawals, balance enquiries and internet logons. If you exceed the monthly limits the charges go up considerably.

Change your banking behaviour: If you can't find a better package, look at what's driving up your banking costs. It could be the cost of swiping a debit card at the point of sale, cash withdrawals, in-branch enquiries, internet banking or writing out cheques.

If you're paying for regular cash withdrawals, draw more money less frequently or use a debit card rather than cash.

Similarly if you're logging up huge charges for internet banking, limit yourself to one or two sessions at the beginning or end of the month.

Also remember you will often be charged for point-of-sale debit card transactions. So weigh up the options and find out which is best for you.

Be a responsible customer: Banks charge punitive fees for careless behaviour such as bouncing cheques, not making cheques out properly or not having sufficient funds to cover a debit order. If you want to avoid incurring these unnecessary costs, be a responsible customer.

Old Mutual Bank has tried to address some of these needs by launching a cheque account which it says offers the lowest charges for a mid-market account. It has also tried to keep the product as simple as possible by not restricting most of the services.

Stander said: "One of the most common consumer complaints about banks is that besides being too high, bank charges can be incredibly complicated, subject to myriad terms, conditions and small print.

"We've tried to respond to these concerns with an account that combines a low fee, simplicity and transparency."

Source: Fin24.

 

[Prometheus]

Once you know the kind of services you use most and how much you're paying for them you're better able to see if there's a package that provides what you need at a better price.

It pays to be sure about your requirements as packages usually specify the number and type of transactions you are allowed for a given fee; for example cash withdrawals, balance enquiries and internet logons. If you exceed the monthly limits the charges go up considerably.

Yup, where do you need to have a banking "package" in order not to go bankrupt? Why only in South Africa of course. You actually need to know all your transactions before you complete them in order to save. Like it costs them more to complete your transactions if you don't use a package. With PnP you don't pay most charges if you keep more than R5000 in your account, but it's still a rip-off for those living from pay cheque to pay cheque. It can only be South Africa, proudly using confusion to rip you off even more everywhere you go.

 

[swordfish1]

The thing that amazes me is that somebody has to write an article like this to open the eyes of the millions of blind South Africans, who are not educated enough to figure those things for themselves! There are numerous ways to save on bank charges, I do not suggest that the banks are correct in charging so much in first place, but given that one cannot change much in that respect, at least bother to read and understand the fee structure and options offered by your bank and use them for your best interest!

 

[Prometheus]

I think it's the confusion that's the problem. Most people either don't do the calculation or they don't know how to do the math. The banks and also the cell operators and a lot of other companies take advantage of this and structure their packages in a way that makes it hard to compare them. Then when people complain they just tell them that they are on the "wrong package" and that's normally the last you hear of it. They are deliberately getting people to use a more expensive package and most of the time they put them on the more expensive package and I think most people are under the impression that they are on the the cheapest package. Take absa for instance. If you're over the age for pensioners you only pay saswitch fees and 20c government levies, but you have to tell them to put you on that package otherwise you pay for every transaction. Most people don't bother going to their bank and some actually think that their bank has their interest at heart. lol

OT: For instance how many people here know that there are two tariffs for electricity.

 

[swordfish1]

I think it's the confusion that's the problem. Most people either don't do the calculation or they don't know how to do the math. The banks and also the cell operators and a lot of other companies take advantage of this and structure their packages in a way that makes it hard to compare them. Then when people complain they just tell them that they are on the "wrong package" and that's normally the last you hear of it. They are deliberately getting people to use a more expensive package and most of the time they put them on the more expensive package and I think most people are under the impression that they are on the the cheapest package. Take absa for instance. If you're over the age for pensioners you only pay saswitch fees and 20c government levies, but you have to tell them to put you on that package otherwise you pay for every transaction. Most people don't bother going to their bank and some actually think that their bank has their interest at heart. lol

OT: For instance how many people here know that there are two tariffs for electricity.

I agree 100% with what you are saying about the banks trying to screw you, but whos fault it is? If people are ignorant and don't know how to read or do math, that's their problem, not the banks problem! Why I don't have such problem? Becuase I do spend 30 minutes of my time every year to check the bank web site or pricing brochures and familiarize myself with what is what! Sometimes if something is unclear, I will phone the bank and ask for clarification!

Until people act like retards, banks will screw them, if people get smarter, and put all little tricks into use to save as much as they can on fees etc., banks will realise that the amount they make from fees is to small to justify the effort involved, and eventually will drop the fees, as in other countries!

 

[Prometheus]

I agree that it's the people's fault entirely. I think we should all just march over to our banks at the same time and DEMAND that they drop the charges. People here are too lame. If this was America everyone would have been rioting in the streets. We should all threaten them to withdraw all our money and actually start doing it as well.