Bank fees: Stuff you

Listen to Bruce Whitfield talk about how banks still refuse to relent on charges.

Right off the BAT

The limitations of an inward listing dampen the appeal of BAT on the JSE, writes Vic de Klerk.
SA's most expensive bank: Absa
Aug 14 2008 11:23PM
David McKay
Johannesburg - Absa has emerged as the country's most expensive bank, according to Fin24.com's sister publication, Finweek, which published its fourth annual 2008 Finweek Bank Charges Report on Friday.

Absa, South Africa's biggest retail banker, also saw the biggest year-on-year increase in fees, Finweek said in its report. It is not alone, however.

Bank charges rose, in some cases by more than 20%, despite the growing threat of regulatory intervention and a public commitment by the banking sector to tackle charges and keep increases to a minimum, Finweek said.

There are literally hundreds of permutations and no single, accessible, accurate comparison mechanism for a like-for-like comparison of fees, Finweek said. Nonetheless, the report reinforced the findings of three previous studies by the magazine and supported several key conclusions of the Competition Commission-sponsored Jali report.

According to research commissioned by Finweek and carried out by chartered accountants at Horwath Forensics, Absa is the country's most expensive bank for customers who use its fixed price package options as well as for those who pay for each individual interaction with the bank on the Pay-As-You-Use (PAYU) basis.

But the accolade for the biggest price increases over four years goes to Standard Bank.

Since 2005 the monthly cost of Standard Bank's package option has risen an astronomical 60% from being the cheapest at R198.40 in the 2005 report. It would now cost a fictional Finweek family R317.05 a month to transact using Standard Bank's package options.

Important fee growth statistics in South Africa's other banks such as Nedbank and FNB are also investigated by Finweek.

The magazine also investigates service levels within particular bank branches with some eye-opening results.

If you would like to get a full version of the story in print, subscribe to Finweek magazine.

For a full copy of the bank charges report, click here.

- Fin24.com

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Comments
Alan on 2008/08/18 10:17:25 AM - rip off bank charges


Where can I get a business current account with a credit card,garage card,some sort of savings account with internet banking?I dont want to be with any of the South African big 4 banks ie ABSA,FNB,Nedbank and Standard.After 23 years with Standard bank as a private and business customer whos service and bank charges are just as bad as the rest of the other banking thiefs.I am not interested in the banks mision statements and acronyms about how much they value their people and there contribution that they make or how wonderfull their customer service is.Which is non existant.Try having your ATM card swallowed and try and get back onto internet banking at Standard bank and see what kind of non existant service you will get from them.All banks lie,South African banks make the profits of GDP of small countries.Why does one never recieve a phone call from a customer services department asking about thier service? I am itching to make a change to any non South African bank.
bflannigan on 2008/08/18 09:18:35 AM - ABSA


I closed my account with ABSA two years ago because of the monthly charges. I now banking with Pick & Pay Go banking. My refunds from shopping at Pick & Pay usually cover my accounts charges. I get interest on my balance & cash withdrawals at the till are free! Two years ago this saved my over R120 per month.
ARTHUR on 2008/08/18 08:46:08 AM - RIPP OFF


I WAS A ABSA CLIENT FOR MORE THAN 12 YEARS. I CONSIDER MYSELF TO BE VERY CONSERVATIVE WHEN IT COMES TO MONEY AND MY CREDIT RECORD.I HAD A SILVER CHEQUE ACCOUNT AND MY AVERAGE MONTHLY BANK CHARGES WERE BETWEEN R320 - R390 PER MONTH.I RECENTLY CLOSED MY ABSA ACCOUNT AND CHANGED TO CAPITEC BANK. WHAT AN EYE OPENER.THE PAST MONTHS MY AVERAGE BANK CHARGES ARE R38 PER MONTH. YES, ONLY R38 PER MONTH ,MY INTERNET BANKING IS FREE OF CHARGE.AND TO TOP IT ALL I HAVE EARNED ABOUT R40 PER MONTH IN INTEREST ALONE.THE BEST NEWS IS THAT FOR THE ONCE OR TWICE I HAD TO VISIT THE BANK WITH AN ENQUIRY , IT WAS SORTED WITH NO FUSS.THIS MUST BE OUR NEW AND WONDERFULL FREE SOUTH AFRICA'S BEST KEPT SECRET.....AND ALL OF A SUDDEN I HAVE AN ADDITIONAL R300 TO SPEND OR SAVE ........


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