ARE YOU PAYING TOO MUCH TO BANK?

Last year’s Bank Charges Report by the Solidarity Research Institute (SRI) states that if your bank charges amount to more than R120 a month, “it is very likely that you are paying too much”.

If you have one of the top bundles highlighted on this page, for example, you may be paying more than you need to, unless you are enjoying all of the benefits.

The report recommends that you get an understanding of how you transact and how much you are spending on bank charges before checking the report for cheaper accounts at the various banks. To download the most recent report, go to www.solidarityresearch.co.za

The banks have fee calculators to help you work out what you’re paying in bank fees on your account, based on your unique mix of transactions. You’re required to enter the type and number of transactions you make, via your banking channel of choice, and it works out what your bank account is costing you, and in some cases lists alternative accounts for your income bracket. If you are considering moving banks and have an idea of which account will suit you, you can use the prospective bank’s calculator to check what you will pay.

SAVING TIPS

Standard Bank offers customers the following tips to save on their bank charges. These would generally apply to any bank.

◆ Use self-service banking channels. They are cost-effective as well as being safer and more convenient.

◆ Reduce cash withdrawals at ATMs – customers on packaged offerings should consider doing fewer but larger ATM cash withdrawals to remain within their free-transaction bundles. (This doesn’t apply to customers on the Nedbank Savvy Bundle Account, because they get an unlimited number of cash withdrawals at Nedbank ATMs.) ◆ Avoid issuing cheques. ◆ Use your cheque, credit or debit card to make in-store payments, or purchase online with either your cheque or credit card. (If you’re a pay-as-you-transact customer, you need to know your transaction costs, and on some bundles there is a limit on the number of debit or cheque card purchases covered by your monthly fee.)

◆ Avoid penalty fees by ensuring that there is always enough money in your account to cover any payments and debits off your account.