SA bank withdrawal fees compared

FNB has announced its banking tariff changes for the 2014/15 period, which are due to kick in on 1 July 2014.

First National Bank is the last of South Africa’s big banks to update its fee structures for the 2014/15 period (the other banks update with prices effective from January 2014).

The bank’s main middle-range account (Gold) has maintained its R100.00 per month fee, while its top-tier Platinum account has increased in price. The group’s entry level Smart Account has also remained flat at R49.00.

While banking fees have increased, FNB’s middle-market offering still compares favourably to South Africa’s other banks, though Capitec’s Global One account remains the most affordable middle-market account in the country.

FNB account fees 2014

Account	2013/12	2014/15	Increase
Smart	R49.00	R49.00	–
Gold	R100.00	R100.00	–
Platinum	R135.00	R145.00	7.4%
Petrol Card	R13.50	R14.50	7.4%

2014 ATM withdrawal fees

Withrawal fees at FNB ATMs have increased marginally to R6.70 per R500 (from R6.30 per R500 from 2013/14).

Additionally, the bank’s pricing brochure makes no indication of a withdrawal fee cap (which was R25.20 in the 2013/14 period), implying this safety barrier has been removed from its banking products.

The withdrawal fee cap was implemented after a lot of shock from consumers who were met with high charges after withdrawing bigger amounts of cash from FNB and other ATMs.

Further, the number of free withdrawals on FNB’s Unlimited banking plan has been reduced from 6 to 4 free withdrawals.

Withdrawals beyond the free monthly amount will cost a minimum of R6.70 at FNB ATMs (with no maximum indicated), and a minimum of R13.20 at other ATMs.

FNB has been leading the charge for South Africans to move to digital banking for a number of years, effectively discouraging the use of cash for transactions.

Transaction	Unlimited Plan	Fee
FNB withdrawal	4 Free withdrawals	R6.70 per R500 (no maximum)
Other withdrawal	–	R6.50 + R6.70 per R500 (no maximum)

South African withdrawal fee comparison

When comparing the new structure to its competitors, FNB remains the second-most affordable bank in terms of its withdrawal fees, after Capitec.

Excepting Standard Bank and Nedbank, the withdrawal fee increases at native ATMs work out to be higher than South Africa’s CPI, which at the end of the first quarter of 2014 was at 6.1%.

Capitec saw the greatest year-on-year increase in its withdrawal fees at 6.9%, but off of a low base (previously a flat rate of R4.30 per transaction at native ATMs and R7.00 at other ATMs).

FNB has maintained that Capitec’s Global One cannot be compared as middle-market, and that it is most comparable with FNB’s entry-level account, FNB Easy.

FNB Easy carries a monthly account fee of R4.95 and charges R4.55 per R1,000 withdrawn at native ATMs (to a maximum of R9.10), effectively undercutting Capitec by 5 cents. Withdrawal fees at other ATMs carries a flat R9.10 charge.

Nedbank’s fee structure remained the same as last year, while a small increase on Absa’s fees now place the bank at the bottom of the pile, with it costing R16.45 to withdraw R1,000 from its native machines.

Absa also had the biggest increase (4.7%) in other bank withdrawal fees, taking it up to the most expensive rate of R22.45 for a R1,000 withdrawal.

Native ATM withdrawal

Bank	Native ATM fee	R1000 withdrawal	2013 cost	%change
Capitec	R4.60	R4.60	R4.30	6.9%
First National Bank	R6.70 per R500	R13.40	R12.60	6.4%
Standard Bank	R3,50 + 1.10% of value	R14.50	R14.00	3.6%
Nedbank	R3,50 plus R1,25 per R100	R16.00	R16.00	–
Absa	R3,95 + R1,25 per R100	R16.45	R15.45	6.5%

Other ATM Withdrawal

Bank	Other ATM fee	R1000 withdrawal	2013 cost	%change
Capitec	R7.30	R7.30	R7.00	4.3%
First National Bank	R6.50 + R6.70 per R500.00	R19.90	R19.10	4.2%
Standard Bank	R6,70 + R3,50 + 1.10% of value	R21.20	R20.70	2.4%
Nedbank	R9,50 + R1,25 per R100,00	R22.00	R22.00	–
Absa	R9,95 + R1,25 per R100	R22.45	R21.45	4.7%

The tables above compare the banks’ withdrawal fees on pay-as-you-transact rates, which are not subject to bundled products.

The fees are applicable to banks’ middle-market transactional/current accounts.

Note that all the banks offer various packages with price and service plans which may be suited to individual banking habits.

Additionally, each bank – with the exception of Capitec – offers an entry-level saver-type account, which offers reduced rates.

While Capitec does not offer a current account specifically, its Global One account is a transactional account and is integrated with the bank’s other services, including saving and credit facilities.

Banking accounts (Pay as you transact)

Bank	Account	Monthly Fee
Capitec	Global One	R5.00
Nedbank	Savvy	R16.00
FNB	Gold Cheque	R31.50 (Unlimited: R100.00)
Absa	Gold Current	R33.00
Standard Bank	Elite Gold	R54.00* (Plus plan: R104.00)