Standard Bank has whacked its customers with a scorching round of increased transaction charges from the beginning of this year.
The bank has also implemented some new fees and has adjusted some of its fee structures dramatically. The transaction which has increased the most is for cash deposits either at Standard Bank's own automatic teller machines (ATMs) or over the counter.
If you have a basic Standard Bank cheque account, the Classic Plus account, you are now being charged R7, or 63 percent more, for a cash deposit of more than R500. Cash deposits of less than R500 are free. You can avoid this charge by asking people or organisations who give you the cash to pay the money directly into your bank account.
Checking on your balance at an ATM that is not part of Standard Bank's own network also costs more after the latest round of transaction fee increases. You will now be charged R2.50 instead of R2 - a 25 percent increase. So, don't use a Saswitch ATM (ATMs outside Standard's network) to get an update on your bank balance.
The cost of making payments by cheque on an amount of R500 has gone up by nine percent from R6.76 to R7.35. Remember that cheques are charged on a sliding scale - the higher the amount, the more you will be charged. The new fees for cheques are R3.15 for the first R100 and R1.05 for each subsequent R100 to a maximum of R21.
The charge for debit orders has been increased by 36 percent (internal debit orders) and nine percent (external debit order). Internal debit orders are those that are paid to an organisation within the Standard Bank group, for instance if you pay a car loan to Stannic (Standard Bank's vehicle finance arm). You are now being charged R3 for each such debit order.
Debit orders to outside organisations are charged on a sliding scale which is the same as the cheque service fee.
Paying more for your cash
Cash withdrawals on an amount of R500 have been upped by nine or eight percent, depending on where you draw the money - from the bank's own ATM, from an Saswitch ATM or over the counter.
What is more significant is the very different fees that are charged for using the various channels.
Drawing R500 from a Standard Bank ATM will cost you R5.95; from another bank's ATM you will pay R11.15; and over-the- counter inside a Standard Bank branch will set you back a whopping R21.85.
Standard Bank has also amended the charges on its fixed monthly fee option. Under this option, last year you paid a fixed monthly fee of R51, entitling you to 10 free cheques a month (and R6 for each subsequent cheque) and free ATM withdrawals.
This year, the monthly fee has increased to R55 (an increase of 7.8 percent). The first 10 cheques remain free, and the cost for every cheque in excess of this allowance has increased by 17 percent to R7.
Now eight free ATM withdrawals are allowed each month, after which an amount of R5 per ATM withdrawal is charged.
Darrel Orsmond, the director of Standard Bank's retail banking division, says the changes to the fixed fee option are in line with the bank's attempt to scale down the level of cash transactions as a result of the costs and risks on such transactions.
Furthermore, it is felt that the allowance of eight free ATM withdrawals a month should be more than sufficient for customers, given the alternatives available.
If you make use of the bank's rebate fee option, you should be aware that the bank has changed this option significantly.
Previously, if you maintained a balance of R5 000 in your account, a range of the most commonly used transactions were all free.
This year, however, you will qualify for a certain discount off the normal fees payable based on the average balance you maintain in your account.
For balances between R6 000 and R14 999, you will get a discount of R70. The discount is R110 for balances between R15 000 and R24 999. The maximum rebate you can get is R180 if you keep R25 000 or more in your bank account.
Orsmond says that despite the restrictions, it is still possible to enjoy the benefits of free banking if you maintain a minimum balance.