[Opinion] Wells Fargo

[anakin]

I opened a banking account with Wells Fargo in the US two months ago with a couple of transactions including three deposits, debit card payments, several checks and I still have not paid 1 cent for banking fees. How is this possible if you compare this with one of South African banks?

[Dave A]

Absolutely no charges at all?

I hear our banking in SA is among the most expensive in the world, so a drastic reduction in banking costs elsewhere would come as no surprise.

But free banking?

[garthu]

You know.. i could even learn to like a bank again if they did that.

Free... sure really comes as a surprise but the amount they make just having your money to invest, they can do well out of that.

Our banks profit billions here in SA a year, drives me insane.

[anakin]

Yes, completely free as long as I maintain the balance above $ 100 (R 700). I will be depositing an international check for first time soon and the banking fee is $1.50 regardless to the amount written on the check. The internet mobile and internet banking are also completely free. I forgot to add 7 ATM withdrawals in the US - also completely free.

https://www.wellsfargo.com/checking/

I even get a very low interest, which is far better than my Ned*@nk account, except for my Go Banking account (closed to New Business).

[Justloadit]

The difference in the US is that any person can set up a bank, of course provided they meet a certain criteria. In RSA, you need to get a banking license, and fat chance of that happening with the BEE codes and all. The local banks know this, and continually pull on our short and curlies with out consequences.

[anakin]

Justloadit, the high banking fees existed long before the BEE was implemented. The banking license is also a prerequisite in the US.

[Justloadit]

Justloadit, the high banking fees existed long before the BEE was implemented. The banking license is also a prerequisite in the US.

Accepted, but try and get a banking license right now in RSA, and there are not enough legs to get over the hoops, it almost seems they do not want any more banks. I did say a banking license was required in the US, it is so much easier for anyone wishing to follow that route though. THERE are thousands of private banks all over the US. In many instances they only serve an individual city or county. For this reason, the banks attempt to lure you as a client by offering free banking.

[anakin]

Yeah, that's a point.

The South African banks need to become more competitive and I think Capitec is leading the way now but they offer personal banking account only, just yet. The postBank will become a commercial bank soon.

[Dave A]

The postBank will become a commercial bank soon.

I've got mixed feelings about that. My gut instinct is that with typical state inefficiency it won't be competitive, which means it will have to be subsidised somehow.

Then if they overcook the subsidy, they'll wipe out the private banks and we'll just have a state bank left.

Would a single state bank be a good thing?

I cast my eyes at SAA, Telkom, Eskom, Transnet etc. and a little shiver goes down my spine.

[Chrisjan B]

I cast my eyes at SAA, Telkom, Eskom, Transnet etc. and a little shiver goes down my spine.

That is an understatement - I am shaking uncontrollably!!!!!!!!!!!