Small bank fees feel harmless, but over a year they can add up to several hundred rand. They are also one of the easiest costs to cut, because you change habits, not lifestyle.
Here is where bank charges hide.
Where do bank charges come from?
| Charge | What triggers it |
|---|---|
| Monthly account fee | Having the account |
| Transaction fees | Card swipes, EFTs, debit orders, ATM use |
| Cash withdrawal fees | Withdrawing at ATMs or tills |
| Declined debit order fees | Not enough money when a debit hits. See debit orders explained |
| Card fees | Replacement or monthly card charges |
| Overdraft fees | Using an overdraft |
| SMS or notification fees | Paid alerts |
Check your statement for the last three months and list every fee.
What could the difference look like in rand?
Here is a hypothetical month. Fees differ by bank and account, so check your own fee schedule.
| Charge | Before | After |
|---|---|---|
| Monthly account fee | R65 | R65 |
| 4 ATM withdrawals at R10 | R40 | R10 (1 larger withdrawal) |
| 2 declined debit orders at R30 | R60 | R0 (buffer kept) |
| Paid SMS alerts | R15 | R0 (app alerts) |
| Total | R180 | R75 |
That is R105 a month, or R1,260 a year, with no change to what you buy. Your own figure may be smaller or larger.
How do you pick the right account for you?
Compare accounts on total cost, not only the monthly fee.
- Count your monthly transactions of each type.
- Check the cost of each on the bank’s fee schedule.
- Compare digital and branch options.
- Look for accounts that suit your profile, such as low-transaction or student accounts.
You can switch banks. Ask about moving your debit orders and salary first.
7 ways to cut bank charges
- Use the banking app instead of branches or ATMs. It is usually cheaper.
- Pay by card or EFT where cash fees are high.
- Withdraw cash less often, in slightly larger amounts, if it is safe for you.
- Keep a buffer so debit orders do not bounce.
- Align debit dates with payday. See paycheck to paycheck.
- Turn off paid alerts if you do not need them.
- Close unused accounts that charge fees.
If a fee was caused by a bank error, ask for a refund and keep proof of what happened.
What about overdrafts?
An overdraft costs interest and fees. It can look cheap for a short time and then become costly. Do not rely on it for ordinary costs. See emergency loans.
How do you check for mistakes?
Review your statement each month. Look for duplicate bank charges and debits you do not recognise. If a charge looks unfair, ask the bank to explain in writing.
If you are not satisfied, you can escalate to the National Financial Ombud.
What should you do with the savings?
Even R50 a month in avoided bank charges is R600 a year. Move it to savings on payday. See how to save money and emergency fund.
How do you read a fee schedule to understand your bank charges?
Every bank publishes a pricing guide, and it is worth ten minutes. Find these lines, and write the numbers in your notes:
| Line | What to look for |
|---|---|
| Monthly account fee | A flat fee, or one that changes with your balance |
| Card payments | Free, or a fee for each payment |
| EFT and debit orders | Often priced by channel: app, online or branch |
| ATM withdrawals | Own-bank and other-bank prices differ |
| Cash deposits | Important for traders and cash earners |
| Returned or declined debits | A fee each time |
| Overdraft | Interest and a facility fee, if you have one |
Prices differ by bank and account, and they change, so use the current guide from your own bank. A guide that is hard to find or read is a reason to ask questions.
Which account suits which person?
Here are two hypothetical accounts for a typical month: 20 card payments, 4 EFTs and 2 ATM withdrawals.
| Fee | Account A | Account B |
|---|---|---|
| Monthly fee | R65 | R0 |
| 20 card payments | R0 | R60 |
| 4 EFTs | R20 | R28 |
| 2 ATM withdrawals | R20 | R24 |
| Total | R105 | R112 |
Account A is cheaper for someone who makes many payments, and Account B suits someone who makes very few. If you used only five card payments and one EFT, Account B would cost about R27, far less than Account A.
The right account depends on your habits, so count your own transactions for a month before you choose.
How do you switch banks without chaos?
Moving takes planning, but it is not hard. A sensible order:
- Open the new account, and make sure the app and card work.
- Ask your bank whether it has an account-switching service, which can help move your debit orders.
- Tell your employer about the new account, and ask for a small test payment first.
- Move debit orders one at a time, starting with the most important ones.
- Keep the old account open for about two months, with a small balance, until everything has settled.
- Close the old account in writing, and check that no fees remain.
Do not close the old account the day your salary moves. A debit that fails because the money went to the new bank can cost you a fee and a damaged payment record.
How do you challenge one of your bank charges?
Start with the facts. Download the statement, and highlight the charge. Compare it with the fee schedule for your account at the time. Then:
- Contact the bank in writing, and ask for an explanation and a refund, with the date and amount.
- Keep the reference number, and follow up after a reasonable time.
- If you are not satisfied, escalate to the National Financial Ombud, which handles complaints about banks and insurers.
A calm, specific message, with the statement attached, gets better results than a long complaint. Banks do refund fees that were charged in error.
What should a cash trader know about bank charges?
If you take cash in a small business, deposit fees can be your biggest cost. Three habits help:
- Deposit in larger amounts less often, if the fee is per deposit.
- Compare business and personal accounts for the cost of deposits.
- Use the bank’s own deposit channels, which are often cheaper than a retailer’s till.
Keep the slips, and match them to your statement, so you can show a lender your income. See loans for self-employed people.
Frequently asked questions
Is a cheaper bank always better?
Not always. Compare total costs for the way you bank.
Are bank fees negotiable?
Sometimes. Ask, and compare other options.
What if a debit order bounced?
Contact the lender and your bank, and avoid repeat failures.
How often should I review fees?
At least once a year.
How can I find out which fee schedule applies to my account?
Look in the bank’s app or website for the pricing guide for your account type, and ask the bank if you are not sure which one applies to you.
Do banks have to tell me before they raise fees?
Banks must give notice of changes to charges. Read the messages from your bank, and check the pricing guide each year.
One free 5-minute form is sent to NCR-registered lenders. Each lender decides for itself and shows you the full cost before you sign.
Start my free application
