The banks with no monthly account fees can save you R1 500

Every year, like clockwork, you’ll receive a notification from your bank that your account fees are increasing. But have your account benefits increased alongside them?

If you’re tired of spending hundreds every month on fees, you can change that by switching to a bank with no monthly account fees.

Visit michezonews.co.za for more information.

Monthly account fees used to be a status symbol

If you’re spending R130 (or more) a month on bank fees, you could be paying too much. Over the course of a year, you’ll spend more than R1 500 for basic banking. Usually, you’ll spend more than that because of all the hidden fees.

The last time you put any thought into your bank account was when you opened it. Today, you should think again and reclaim your money.

When you first started banking, paying the account fees gave you access to tiered banking with a card to match. Gold, silver, platinum, and black. Now, most bank cards are black. Besides, you’re probably making your payments with a virtual card.

But you won’t think about changing because of the benefits and the rewards.

Every bank advertises the benefits of getting a bundled account and upgrading. They never discuss what banking looks like in reverse.

When you’re on the entry-level premium package, you’re getting the bare minimum in banking. Before, you could get airport lounge access and premium rewards; now you’re essentially paying to remain in the formal economy.

As you upgrade to higher tiers, the rewards can feel substantial, but they might be cheaper if you paid out of pocket.

Does it make sense not to pay monthly bank account fees?

If you want to save money, the easy choice is to get a cheaper account.

But first, consider if it makes sense to move to a cheaper account. You can do this simple calculation:

Monthly bank fee + service fees – cash value of rewards = cost of banking.

• Cash value of your rewards. Most of the major banks offer rewards. You should get a notification about how much you’ve made in rewards for the month.

• Cost of service fees. Nothing is free. Even if you’re spending R200 on monthly bank fees, the bank still charges additional service fees. You can find these charges by checking the service fee column in your transaction history or the total service fee charge on your bank statement.

You’ll add your monthly bank fee to the additional service fees. Then, subtract the cash value of your rewards from your monthly bank fee. This is what it costs you to have a bank account.

You can use this figure to compare the cost of moving to an account with no monthly fees.

Banks that offer accounts with no monthly fees

There are only three banks in South Africa that offer bank accounts with no monthly fees. Two of these are virtual banks, and the other is FNB.

FNBGoTymeBank ZeroNameEasy Zero Account Not ApplicableNot ApplicableEFT to other banksR2R0R0EFT to own bankR1R0R0Debit orders UnavailableR0R0ATM withdrawal (own bank)R12 per R1000n/an/aATM withdrawal (other bank)R14.80 per R1000R10 per R1000R10 per R1000Withdraw cash at tillR3R2R2.50Prepaid airtime/dataR0.65R0.50R0Prepaid electricityR1R3R0LottoR3R3n/aVouchersR3R3n/a

Cheapest Bank Accounts

FeesFNBNedbankAbsaStandard BankCapitecName Easy PayUMiGoalsTransact AccountMyMo Bank AccountTransactMonthly feeR8R8R7.50R7.50R7.50EFT to other bankR2R1R2R2R2EFT to own bankR1R1R2R2R1Debit orderR3.50R4R3.50 external debit ordersR3.50R3ATM withdrawal (own bank)R12 per R1000R12 per R1000R11 per R1000 up to R2000R10 per R1000 up to R2000R10 per R1000ATM withdrawal (other bank)R12 + R2.80 per R100R12 + R12 per R1000R10 + R2.70 per R100R10 per R1000 up to R2000R10 per R1000Withdraw cash at tillFree up to R1500, then R3R1 at Shoprite, Checkers, USave, Boxer, Pick n Pay, OKR0R0R2Airtime/dataR0.65R1R1.50R1R0.50Prepaid electricityR1R1R1 to R3R1.60R1LottoR3R2R2.70R2.95R2RewardsYesYesYesYesYes

Switching to a Zero Monthly Fee Bank Account

If you switch to a zero-fee bank account from FNB, the process is simple.

Make a phone call or use your banking app.

When you make the swap, your account number will remain the same. You’ll also be able to use the same card you’ve been using until it expires.

If you don’t want to move to another bank, you can still embrace the cheapest option your bank offers. Absa, Standard Bank, and Capitec offer bank accounts that are R7.50 a month. Nedbank and FNB have bank accounts from R8.

Each has its set of benefits. Many don’t have access to rewards. However, when comparing these cheaper accounts with premium bank accounts, you may notice that cheaper accounts also have lower service fees.

These accounts are intended to serve the unbanked or underbanked. They rely on a pricing model that makes banking affordable. You can use that model to your advantage and save thousands in fees every year.

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