South Africa’s bank charges are exorbitant, but you can pay less by following these tips:

  • Compare your bank’s different cost structures. You may have a choice between paying per transaction or a fixed monthly fee. If you don’t transact often then paying per transaction will be cheaper.

  • Compare banks’ charging structures. If a different bank charges less, inform your bank and negotiate for lower charges. If you are a good client the bank will be eager to keep your account.

  • You don’t have to do all your banking at one bank. You may get a higher interest rate for deposits at one bank and pay lower fees for withdrawals at another.

  • Avoid going into your branch. ATMs, internet banking as well as telephone and cell phone banking are more cost effective.

  • Use your own bank’s ATM. You pay additional charges for using another bank’s ATM, costing up to R15 per transaction regardless of the amount of money drawn.

  • Chuck the cheque. It is more cost effective, not to mention safer and more convenient, to use debit, credit or cheque card to pay for purchases than to pay by cheque.

  • Draw less often. Withdrawing large amounts less often limits the cash withdrawal fees you pay. The interest that you lose, unless you have really huge funds, will not be anywhere near the bank charges.

  • ATM deposits are free so avoid going into your branch.

  • Consolidate your transacting accounts. Why have various accounts with smaller totals earning little or no interest? Consolidate and earn more interest. Look for an account that does not only offer you the best interest rates, but also low charges on the account.

  • Students should enquire about special student cards for which you pay lower service fees.

  • Cancel your debit orders and make the payments on the internet directly into the supplier’s account.

  • Maintain a minimum balance. Most banks have a facility of paying no service charges, or a certain number of free transactions, on savings accounts if you maintain a balance of more than a predetermined minimum.

  • Remain within your account limit. You will avoid paying penalty fees on dishonoured items due to insufficient funds in your account.

  • Take care of your ATM card to avoid replacement fees.

  • When depositing a cheque make sure it is not post-dated, as you will be charged for these as well as unpaid cheques.

  • Pay your account by the due date. You will avoid late payment charges. Consider setting up a debit order for the minimum payment so you never go into arrears. Setting up a debit order is free.

  • Stay within your allocated credit limit to avoid incurring ‘over limit’ charges.

  • Use an electronic payment method to put money into your credit card account. You will avoid the cash deposit fee that banks charge.

  • Use credit cards instead of cheques or cash. The store pays the transaction costs.