[Question] Internet Bank Payments

[AmithS]

Hello All,

I never noticed this, at least I think I knew but it changed and I only noticed it today

Let me explain,

I have my personal banking account with Standard Bank and my business account with FNB.

Now when I make internet bank payment with FNB I pay a fixed fee and I always taught this was the same for my Standard Bank account (I am sure it was this way before - thats why we use internet banking right? because its cheaper?)

Now I see that I am being charged upto R17 on almost all my Standard Bank internet banking payments! I checked the Standard Bank web and indeed you are charged on a sliding scale upto R17!

Is this the norm with other banks? - I am definitely going to open a Capitec Account this week!

Thanks,

[mother]

Holy cow! That is excessive! I'm sure someone mentioned the other day that Standard Bank's bankfees are the highest at the moment.

[Blurock]

For years now, Banks have encouraged their clients to do online banking and do away with cheques due to the associated risks and cost. Nothing wrong with that.

Cheque clearances were charged on a sliding scale because the banks used to physically exchange cheques to clear inter bank transactions. The inter bank clearing bureaus also had an associated cost as cheques still had to be physically transported. Although fees are high, the charging of fees are justifiable. The same goes for cash deposit fees (NOT cheque deposit fees - that is robbery!).

Now that everyone is switching to electronic banking, banks realise that they are losing revenue and they now want to charge us as if we were writing out cheques! Consumers should take a firm stand and not allow this.
Do not be bullied!

As far as I know, the cost of computing is reducing all the time, so why do we have to pay more? The same with electronic statements. Due to the rising cost of postage, banks are encouraging their clients to receive electronic statements. They are saving on postage, paper and envelopes, yet we have to pay an increasing monthly statement fee to receive the statement and print it on our own stationery. They are also saving on labour as the statements are automatically printed and distributed by e-mail.

We are paying for the inefficiencies of the banking industry. This is another scheme to boost revenue introduced by McKinsey or some other American consulting firm. So what are we doing to stop these money grabbers?

[Duncan]

Seems to me that we are all seeing this problem with banking, especially Standard Robbing Bank.
I wonder if the reduced earnings due to lower interest rates coupled with a declining economy make them put higher and excessive fee structures together so that they can still meet the demands of their share holders.
I am fast becomning of the mind to move all my money out of SA, open an account overseas and then pay from there. We are in a glabl ecomony and i am sure it will be breaking some rules, but its high time the banks started working for us and not just for there own means.

Std bank declared last year earnings of nearly R14 Billion. Not bad when you in a recession. Can i get a rebate for being one of your poor clients.

[murdock]

duncan this is an interesting statement...because i get paid from one of my customers via india...and all payment queries etc and admin go via india..emails and internet ransfers...so what is to stop me from setting up a bussiness in india and run it from sa...would it not save me a lot of maoney and what would be the tax mplications?

are we allowed to open an account in india or anywhere for that matter...the internet has made the world a small place...how often do you go into the bank anyway...everything is done online.

i am one of the suckers who just sticks with standard ban because it just seems like to much of a hassle to move...much like most customers in sa...thats why people get away with such kak service.

[AmithS]

Guys, like Murdock, I didnt switch banks because of the hassle and I have been with standard bank since before a teen when my dad opened an account for me.

Well guess what today I opened a Capitec Account

and I am going to be moving most of my transactions to them!

[sikander7860]

with FNB, i only see a service fees amount of about R300+ not indicating how the charges are derived. Not sure if this is expensive for a cheque acc with no cash deposits.

[Modise]

Capitec is gradually gaining serious momentum. I am also considering opening a savings account with them.

[Blurock]

I notice some mind shifts here.
Change may not always be good, but if you are being overcharged and your bank does not want to budge, phone the opposition for a quote. They will come to you and do all the work necessary to transfer your account. This may however depend on who you are dealing with as some of them are still fast asleep.

Make sure that you make the right choices and do not just transfer out of spite.
We still do have choices in life.

[murdock]

so lets hear some experiences from people who have made the move or have contacted their bank and reduced the fees.

and any feed back with regards to off shore accounts

[Blurock]

One of my clients have recently changed from Absa to FNB. Immediate savings R1000 + pm as FNB has free internet banking and Absa charges per transaction. On my own business I pay less than R200 pm on average. This is low as I do not have debit orders or cash deposits, which can add considerably to charges. Can't afford to change?