FEES:

Finweek English Edition - - MONEY -

Banks may be ac­tively mar­ket­ing their fan­tas­tic (re­duced) bank fees but my ex­pe­ri­ence is that un­less you ask them, they don’t usu­ally of­fer you the lower rate. I chat­ted with an 80-year-old client who is des­per­ate for more money. Turns out she banks with Absa (but could have been at any of the other three) and it’s cur­rently charg­ing her more than R300/month in bank fees. This is de­spi­ca­ble!

A quick search of the bank’s web­site shows that there are many greatly re­duced op­tions avail­able, in­clud­ing “free” bank­ing for pen­sion­ers (sub­ject to a min­i­mum in­vest­ment of R15 000 with them). Do­ing the maths, R15 000 at 5% (money-mar­ket rates) equates to around R63 a month… so this is an at­trac­tive op­tion, es­pe­cially when com­pared to her cur­rent sit­u­a­tion. Some of the other banks of­fer cur­rent ac­counts at R40 a month for pen­sion­ers.

It is time to wake up with re­spect to bank fees – if you are paying more than R100 a month in bank fees, then you are paying too

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