Standard Bank simplifies, cuts banking fees
Standard Bank has simplified its bank fee pricing structure from January, with reductions in certain areas as well as price freezes in others.
Given the economic environment and the obvious impact of the Covid-19 lockdown, banks have been under pressure not to increase monthly account or bundle fees as part of their annual pricing changes. FNB kept monthly account fees unchanged in July.
Standard Bank says its “decision to review and amend its pricing was made after careful consideration of several factors, including the economic impact of 2020, the current realities for people and businesses, easier access to banking services, and the need to make pricing simpler for customers to understand”.
Its monthly administration or bundle fees will remain the same – except for the middle-market Elite Account where the bundled fee increases marginally from R107 to R110 per month.
The bank has altered its cash withdrawal pricing to a flat rate of R7.50 per R1 000 (or part thereof), from the previous fee per R100. This is surely to incentivise fewer, larger withdrawals from the predominantly lower-income segment of customers who incur these charges ( a certain value of withdrawals is bundled ‘free’ with accounts targeting middleand higher-income customers).
Any withdrawal of R400 or above from its ATMs will be cheaper than at present.
Standard Bank says that it has “removed the ATM cash withdrawal Saswitch fee charged to its customers who withdraw cash using ATMs belonging to other banks”.
While those at other banks’ ATMs are charged at a steeper rate (R10) per R1 000, a withdrawal of any amount is cheaper than the current price structure.
The fee for withdrawing cash at participating retailers has reduced from R2 to R1.40 (although on bundled account options, these transactions are free).
The pricing structure for cash deposits at ATMs has also changed to a rate (R9) per R1 000. Branch deposits attract a minimum fee of R60 (and are charged at R18 per R1 000).
For those customers on bundled accounts, there have been some changes to the limits for cash withdrawals or deposits.
Debit order charges – also free on bundled account options – have been slashed from R4.50 for internal or R18 for external transactions currently to a flat rate of R3.50 from January. –