[Question] Bank charges on personal cheque accounts

[Dave A]

Not quite business finance, I know - but probably the best place to ask the question.

What are you paying for bank charges on your personal cheque account?

I ask because I've just been approached by Nedbank to open an "Everyday Account." Quite a deal. R85.00 per month gets a whole lot of free banking, including:

• 1 free cash deposit a month
• 4 free ATM cash withdrawals a month
• no debit order or stop order processing fees
• all internet banking payments free

and more besides.

I don't normally pay too much attention to what I'm paying on my Standard personal account because to my mind it does not add up to too much. But the request prompted me to look - an average of about R145.00 per month.

It might be worth the trouble to move. But I'm now wondering what else is out there.

[kernel32]

Have you checked out http://www.thinkmoney.co.za/ ?

I've seen a few places I can save on, but I don't ever get round to changing. Personally I think most places charge the same amount for any specific service, they just have different "admin" type fees to hide some of the charges.

[duncan drennan]

On my personal cheque account an average of about R130.00 (STD). My wife is with Absa and the total there is about R235.00 (R135.00 for monthly fees, and a varying fee for internet banking) - although this is her business account too.

The internet banking fee with Absa is what kills me though - they even charge you to look at your statements!

[kernel32]

The internet banking fee with Absa is what kills me though - they even charge you to look at your statements!

That's one of the reasons I switched to Standard Bank. I get everything in one package for about R150pm.

[Dave A]

Hmm. Interesting site. It's a pity you can't compare packages that turn up on different pages

For starters, it looks like I should go onto the Achiever fixed monthly package. That would work out at R120 per month.

There is no doubt I'd be saving using the Nedbank offer. But I was thinking - there is more to this than meets the eye - like my account scoring. It's going to take time to build up that kind of credibility on a new account.

[kernel32]

But I was thinking - there is more to this than meets the eye - like my account scoring. It's going to take time to build up that kind of credibility on a new account.

If you have a good record with your bank, tell them you are considering better offers. 9/10 times they will try and assist you (except if you bank with ABSA). If they don't, you wont lose anything by taking your business elsewhere.

[Dave A]

Standard Bank is not known for being that flexible on their fee packages. Interest rates maybe - but fees?

[Graeme]

Free Banking

For about the last 10 years I have enjoyed free banking with my cheque account with Standard Bank - its called a "Consolidator" account. The deal is that as long as you maintain a prescribed minimum balance you get free banking (it really is free - no strings attached). The amount of cheques you may write depends on the size of the minimum balance you had during the month. You may pick up a brochure at any Standard Bank branch.

I am not necessarily a buddy of Standard Bank but I have to admire them for this service. One thing though - I did not ask them for this, they invited me to have it, so I dont know if just anyone may cruise in and demand one. When they offered it to me I had already had a current account with them for many years.

[duncan drennan]

Most of the banks (all?) have a rebate option where you get a fixed amount of your fees refunded if you keep a minimum balance (have a look at STD's transactional account fees).

The rebate is essentially tax free interest, so if you don't have debt or an investment account yielding a higher effective interest rate after tax, it is a viable option. The Consolidator option is only for over 60's.

[Graeme]

Consolidator Account

You may have to be over 60 to get a consolidator account nowadays, but when I got mine I was 55 yrs old.

[Blurock]

Personal banking depends on your own lifestyle and personal needs. Nobody needs a cheque account any more, as it is an outdated form of transacting. You only need this if you need an overdraft, but then it is easier to get credit on a credit card. You only need the discipline to clear your card account IN FULL at the end of the month. (You do NOT want to pay this exorbitant interest!). There are options available with debit or credit cards linked to internet which allows you to transact electronically. Some credit cards have other benefits linked, such as Discovery, with discounts from Kulula, BA, P&P etc. My Discovery cash back last year (up to 10/1/11) was ...... wait for it....... R2,741.62!!!! Just look around. There are many options available and you do not have to stick with your outdated bank package.