In the last six months, South African banks have announced prominent reductions in bank fees for entry level bank accounts. In a time when the cost of living continues to creep up, consumers will welcome the possibility of banking a lot cheaper than they did a few months ago.
Ancley Jacobs, CEO of FNB Consumer Core Banking says whilst some bank fees have decreased, consumers can do more to further reduce their individual cost of banking. Apart from reducing monthly account fees, some banks have also reduced cash withdrawal fees on selected accounts to accommodate the cash needs of consumers, he says.
Jacobs says whilst headline price changes are positive, individual consumers can still do more to significantly reduce the cost of banking for themselves.
He shares the following points that customers should consider to lower banking costs:
Choose the right bank account – using a bank account that is not aligned to your needs will either cost you more money or not give you the value you deserve and desire.
“If you have limited transactional needs, you could benefit by having an account with no or low monthly fees as well as a pay-as-you-go transactional pricing plan. However, if you see the value of added benefits and rewards or even transact regularly on your account, a bundled account with rewards, free benefits and included transactions may be a better option instead” he says.
Go digital – To encourage consumers to bank more efficiently and safely on digital platforms, certain banks such as FNB have zero rated data charges when using their Banking Apps to transact.
Swipe instead of using cash – Whilst cash withdrawal fees have been standardised, simplified or reduced by most banks, cash still carries a significant cost and it’s riskier. However, swiping your debit or credit card is free with most banks and is much safer than handling cash.
Use Cash@Till – Should you need to use cash, you can withdraw cash at a retailer whilst doing your shopping. This service is available with major retailers, it’s convenient and attracts a much lower fee instead of using an ATM
Understand Rewards and Benefits – Rewards are offered by some banks but some are more meaningful than others. eBucks, which is available for FNB customers at no additional cost, is an example of a highly rated rewards programme, providing customers massive Rewards back on some of their everyday purchases such as fuel and groceries.
Some banks have also announced various benefits that customers could receive as part of their day-to-day banking relationship. For instance, from 01 July 2019, FNB will give its Easy and Gold account holders free airtime, data and voice minutes through FNB Connect.
“This is an exciting time for consumers in South Africa because everyone is spoilt for choice, however it’s important to remember that banking is not only about the price you pay, it’s more about the price you pay for the value you get. By being on top of your needs and banking smarter could be very rewarding for you,” says Jacobs.
