Guiding consumers since 2009

Banks agree to cut charges

By Staff Writer
Some more good news for South Africans emerged on Tuesday night after some of the big dog banks agreed to cut some of their retail banking fees.

This follows a request by Finance Minister Pravin Gordhan earlier in the day after his meeting with the CEOs of banks.

"Fees charged must be lower than they are, whether for low-income or high-income accounts. Debit order cancellations must be made easy for people. Banks should detail ATM charges and be transparent on how much is exactly involved.

"If you wish to switch from one bank to another, all the factors that make this switching difficult must be made easy - these are the key changes," said Gordhan.

The cutting of these fees could hurt profits from lenders like Standard Bank, Absa, FirstRand Bank and Nedbank. All of these banks agreed to lower their penalty fees on dishonoured debit charges and to increase transparency on ATM fees and charges.

Gordhan believes that this will help "consumers get easier access to banking facilities and services (and) that they are getting cheaper services"
Standard Bank, the biggest bank in South Africa based on assets, said that they had already made some changes in line with these recommendations.

The dispute over high bank charges in South Africa is nothing new, back in 2008 the anti competition watchdog issued a report stating that retail bank fees were too high and asked for these fees to be cut.

Consumers have long been angered by the high fees and with the country just emerging out of a recession, the lower bank charges is very good news and a step in the right direction for more competitiveness by the country's banks

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions